Seven golden rules for cryptocurrency trading to help you avoid chasing ups and downs
1. Rapid pull-up, slow fall:
The price of the currency rises quickly but then slowly falls, indicating that someone is quietly selling. Don't be fooled by appearances.
2. Rapid dive, slow climb:
The price of the currency falls quickly and then slowly rises, which often means that someone is taking the opportunity to absorb funds, so you need to be vigilant.
3. Rise with a surge in trading volume:
A large increase in trading volume accompanied by a rapid rise in prices usually means that a sell-off is coming.
4. A sharp drop in trading volume:
A sudden increase in trading volume accompanied by a sharp drop in prices usually ushered in a rebound.
5. Rise with shrinking volume:
The trading volume shrinks but the price still rises, indicating that the upward trend may continue.
6. Fall with shrinking volume:
The trading volume shrinks but the price continues to fall, which means that the short-selling force is still dominant and the decline may continue.
7. Volume increases but price does not rise:
The transaction volume has increased significantly, but the price of the currency has remained stagnant, suggesting that the market is not dynamic enough and the market outlook may be weak.
Avoid the pitfalls of chasing ups and downs on the road of currency speculation, remember these seven golden rules, and make your investment more stable!
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