Five core rules for bull market trading, keep these in mind and make steady profits!
In a bull market, the market fluctuates rapidly, and it is particularly important to master the correct operation strategy. The following are the five iron laws I have summarized to help you stay rational in the market and accurately grasp investment opportunities.
1. Rapid rise and slow fall: signal of accumulation
When the price of a currency rises rapidly, but it seems slow when it falls, this is often the dealer quietly accumulating funds. In this way, the dealer steadily accumulates positions in preparation for the next round of rise. Therefore, this trend is often a precursor to pull-up and is worthy of attention.
2. Rapid fall and slow rise: signal of shipment
On the contrary, when the price of a currency falls sharply, but it rebounds very slowly, this may mean that the dealer is quietly shipping. Market sentiment is gradually weakening, and it may be close to the top, and bear market signals are beginning to appear. At this time, you need to be extra cautious and consider reducing your positions at the right time.
3. When the trading volume at the top increases, don't rush to sell; when the trading volume shrinks, leave the market quickly
When the price of the currency reaches a high level, if the trading volume continues to increase, it means that the market is still supported by buying, and the price may continue to rise. Don't rush to sell. However, if the trading volume begins to shrink, it reflects that the market momentum is insufficient. At this time, you must decisively stop profit to avoid being trapped.
4. When the volume increases at the bottom, wait patiently and enter the market only when the volume continues to increase
In the bottom area, a sudden increase in volume may only be a short-term rebound, and the price is likely to continue to fall. Therefore, when the trading volume increases, don't rush to enter the market. Only when the trading volume continues to increase and the price begins to rise steadily is it the ideal time to enter the market.
5. Trading volume is a true reflection of market sentiment
Trading volume reflects the attitudes and emotions of market participants. In a bull market, behind price fluctuations, trading volume can often tell you the true intentions of the market. Whether it is rising or falling, changes in trading volume can help you make more rational decisions.
In a bull market, mentality is particularly important