1. Rapid increases and slow declines indicate accumulation of shares. A quick rise but a slow fall suggests that the major player is accumulating shares in preparation for the next round of increases.
2. Rapid declines and slow increases indicate distribution of shares. A quick fall but a slow rise implies that the major player is gradually selling off, and the market is about to enter a downward cycle.
3. Do not sell when there is high volume at the top; run quickly when there is low volume at the top. High trading volume at the top may indicate further increases; however, if trading volume at the top shrinks, it indicates insufficient upward momentum, and one should exit as soon as possible.
4. Do not buy when there is high volume at the bottom; continuous high volume may indicate a potential bottom, which requires observation. Continuous high volume indicates that capital is continuously entering, which can be considered for buying.
5. Trading cryptocurrencies is about trading emotions; consensus is reflected in trading volume. Market sentiment determines cryptocurrency price fluctuations, and trading volume reflects market consensus and investor behavior!