You need to understand the underlying logic of the currency circle:
First, rising fast and falling slowly is actually accumulating chips. When there is a situation of rapid rise but slow fall, it means that the dealer is accumulating chips and preparing for the next round of rise. In this process, investors can pay close attention to market dynamics and find the right time to participate.
Second, falling fast and rising slowly means shipping. If the market shows a trend of rapid decline but slow rise, it means that the dealer is gradually selling the chips in his hands, and the market is about to enter a downward cycle. At this time, investors should remain vigilant and adjust their investment strategies in time to avoid losses.
Third, don't sell at the top, and run away at the top without volume. When at the top position, if the trading volume is large, it is likely to continue to rise; however, if the trading volume at the top shrinks, it means that the upward momentum is insufficient, and investors should leave the market as soon as possible to avoid risks.
Fourth, don't buy at the bottom, but buy if the volume continues to increase. In the bottom area, the increase in volume may only be a relay of the decline, which requires further observation. Only when the volume continues to increase, it means that funds are constantly entering the market, and investors can consider buying at this time.
Fifth, speculation in coins is speculation in emotions, and consensus is trading volume. Market sentiment determines the fluctuation of coin prices to a large extent, while trading volume reflects the market consensus and investor behavior. Investors should learn to understand market sentiment and analyze changes in trading volume to make more informed investment decisions.
