When buying the bottom or escaping the top, you need to pay attention to the following points:
Pullbacks and Volume:
When the currency price rises and then there is a correction, but the trading volume does not decrease significantly, it indicates that the market is still active and may continue to rise. But if trading volume begins to decrease even as prices hit new highs, this could be a sign that the market is nearing a top.
Waiting and watching:
If the currency price has been hovering at a low level for a long time, don't rush to buy. Watch to see if it bottoms out again and then suddenly rebounds. If this reversal becomes a trend, it could be a good time to buy.
Callback after bottom breakthrough:
If the currency price fluctuates at the bottom for a long time, suddenly rushes out, but then falls back, don't rush to buy. Wait for it to break out again, this could be a real signal to take off and the gains could be huge.
High sideways warning:
When currency prices start to move sideways after rising all the way, with frequent small fluctuations, you need to remain vigilant. In this case, it may be that the market is inducing you to enter the market, but in fact the risk has gradually accumulated. It is very important to set a good stop loss point to avoid being stuck.
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