Law One: Rapid Rise and Slow Fall Indicate Accumulation
When the price of a currency rises sharply and falls slowly, the market maker is accumulating, preparing for future upward movement.
Law Two: Rapid Fall and Slow Rise Indicate Distribution
When the fall is rapid and the rise is slow, the market maker is distributing, and the market is entering a downtrend.
Law Three: Volume at the Top Indicates Caution
If there is volume at the top, the price may still have momentum, so there's no need to sell hastily; if there is no volume, then momentum is exhausted, and it's advisable to exit quickly to avoid risks.
Law Four: Volume at the Bottom Indicates Caution
If there is only volume at the bottom, it may indicate a temporary pause in the downtrend, and buying is not advisable; if there is sustained volume, indicating capital inflow, one may consider entering the market.
Law Five: Trading Cryptocurrencies Reflects Market Sentiment
Trading cryptocurrencies means trading market sentiment; trading volume reflects market consensus and investor behavior patterns, which dominate price fluctuations.