5 Laws of Bull Market Trading, Remember!!!
1. Fast rises and slow falls indicate accumulation
A rapid rise followed by a slow fall indicates that the market maker is accumulating positions in preparation for the next round of increases.
2. Fast falls and slow rises indicate distribution
A rapid fall followed by a slow rise suggests that the market maker is gradually selling off, and the market is about to enter a downtrend.
3. Don’t sell when volume peaks, run away when volume shrinks
High trading volume at the peak may indicate further increases; however, if volume decreases at the peak, it indicates insufficient upward momentum, and one should exit quickly.
4. Don’t buy when volume peaks at the bottom, but consider buying when volume continues to increase
High volume at the bottom may be a continuation of a downtrend and needs observation; continuous volume indicates ongoing fund inflow, which may warrant a purchase.
5. Trading cryptocurrencies is about trading emotions, consensus is reflected in volume
Market sentiment determines price fluctuations, while trading volume reflects market consensus and investor behavior.