Law One: Rapid Rise and Slow Fall Indicate Accumulation
When the price rises rapidly and falls slowly, the market maker is accumulating for future gains.
Law Two: Rapid Fall and Slow Rise Indicate Distribution
A rapid fall and slow rise indicate that the market maker is distributing, and the market is likely entering a decline.
Law Three: Volume at the Top Indicates Caution
If there is volume at the top, the price may still have momentum, so there is no need to rush to sell; if there is no volume, then momentum is exhausted, and it is wise to exit quickly to avoid risk.
Law Four: Volume at the Bottom Requires Caution
If volume only appears at the bottom, it may indicate a temporary pause in the downtrend, so buying is not advisable; if there is sustained volume, with funds flowing in, it can be considered for entry.
Law Five: Trading Cryptocurrency Reflects Market Sentiment
Trading cryptocurrency is essentially trading market sentiment; trading volume reflects market consensus and investor behavior patterns, which dominate price fluctuations.