《Five Laws to Remember When Trading Coins in a Bull Market》
1. Rapid Rise, Slow Decline: Accumulation Signal
The price of the coin rises quickly but declines slowly, often indicating that large funds are secretly accumulating. When the price rises, the inflow of funds is obvious, and a slow decline indicates preparation for the next wave of increases.
2. Rapid Decline, Slow Rebound: Distribution Signal
The price of the coin drops quickly and rebounds slowly, often a silent signal from the operators to distribute, indicating that the market may enter a downward cycle.
3. High Volume at the Top, Don't Rush to Sell; Low Volume at the Top, Exit Promptly
If the trading volume at the top significantly increases, there may still be room for an increase, so don't rush to sell; if the trading volume at the top decreases, indicating insufficient upward momentum, exit promptly.
4. High Volume at the Bottom, Be Patient; Continuous High Volume is a Buy Signal
Don't rush to buy when there is high volume at the bottom, it may just be a short pause in the decline. Only when there is continuous high volume at the bottom and funds are constantly flowing in is it a strong buy signal.
5. Trading Coins is Trading Emotions, Trading Volume Reflects Consensus
The essence of trading coins is emotional speculation, where market emotions affect price fluctuations. Trading volume reflects market consensus and is an important basis for analyzing trends.
Remembering these laws can help investors grasp the market during a bull market, avoid blind operations, and improve decision-making accuracy.