Five iron rules of currency trading🔔🔔🔔
1. Rapid rise and slow fall, accumulation of chips
When the currency price rises rapidly but appears leisurely when it pulls back, this is often a signal that the main force is secretly collecting chips and preparing for the subsequent market.
2. Fall quickly and rise slowly, be wary of shipments
If the currency price rebounds weakly and slowly rises after a sharp decline, this may be that the main funds are gradually withdrawing, and the market may have entered an adjustment or even downward channel.
3. Hold the currency and wait and see if the amount is high at the top, and retreat quickly if the amount is reduced.
If the trading volume at the top area is significantly enlarged, it may indicate that the market enthusiasm is high and the market has not yet peaked; however, once the trading volume at the top area shrinks significantly, it implies that the upward momentum has weakened.
You should leave decisively.
4. You should be cautious when placing large amounts initially at the bottom, and you can enter the market if you continue to increase volumes.
The first heavy volume in the bottom area may be a short-term respite in the downward trend, which requires careful observation; however, if subsequent trading volume continues to increase, it indicates that funds continue to flow in, and the market bottom may have been solidified, which is the time to consider intervention.
5. Emotions drive the currency market, and consensus creates transactions.
Currency trading is essentially a game of market sentiment. The rise and fall of market sentiment directly affects the fluctuation of currency prices. Trading volume is the most intuitive reflection of market consensus and investor behavior. It reveals the market's true attitude and power balance.
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