In digital currency trading, market fluctuations and sentiment changes are often drastic, and mastering some basic operating laws can help investors better judge the market trend and make corresponding trading decisions. The following are the five laws of currency speculation:
Rising fast and falling slowly, suggesting active chip absorption:
When a currency rises rapidly but the callback is slow, it often means that the dealer is accumulating chips and preparing for the next wave of rise. This trend shows that the market has a strong interest in the currency, and the dealer buys a lot at a low level to form price support.
Falling fast and rising slowly may be the dealer is shipping:
If the currency price falls rapidly but rebounds slowly, it indicates that the dealer may be gradually selling and the market may enter a falling stage. At this time, you should remain cautious and wait and see to avoid being trapped. Market sentiment is usually pessimistic, and the dealer uses the rebound to gradually ship.
Be cautious when shipping at the top, and leave the market in time when there is no volume at the top:
When the price reaches the top, if the trading volume increases significantly, it may indicate that there is still room for growth; but if the trading volume at the top shrinks, it means that the upward momentum is insufficient and you should exit in time. The increase in trading volume reflects the high enthusiasm of the market, which may continue to rise; while the shrinking trading volume shows that the willingness to chase highs is weakened, and the risk of a pullback needs to be prevented.
The bottom volume needs to be observed carefully, and continuous volume can be considered for buying:
The bottom volume may mark the relay of the decline, which needs to be observed and confirmed; while continuous volume shows that funds continue to flow in, and you can consider buying on dips. At this time, you should wait patiently and confirm the trend of capital inflow. A single volume increase may only be a short-term rebound, while continuous volume increases indicate that new funds continue to enter the market, and the market may bottom out and rebound.
Speculating on coins is speculation on emotions, and trading volume reflects consensus:
The sentiment of the digital currency market fluctuates greatly, and it is crucial to grasp the market sentiment and consensus. Trading volume directly reflects the market consensus, and paying attention to changes in trading volume can more accurately judge market trends. Increased trading volume is usually accompanied by high market sentiment, and vice versa, it may indicate a strong wait-and-see sentiment.
If you are still watching and cannot see the market trend clearly, it will only fall due to bullishness and rise due to bearishness. Free ➕👗 ➕🌍 BTC7732
