5 iron laws of cryptocurrency trading
1. Rapid rise, slow correction: When the price rises rapidly and then falls back steadily, it is often the dealer who is secretly absorbing chips to prepare for the subsequent market.
2. Sharp drop and slow rise, dealer delivery: The price falls sharply and then slowly recovers, usually the dealer is gradually selling chips, indicating that the market may enter a downward phase.
3. The top volume is sufficient, so there is no need to rush to sell; shrinking volume requires vigilance: high trading volume is active, indicating that there is still room for growth. But if the trading volume shrinks and the upward momentum is insufficient, you need to leave the market decisively.
4. The bottom volume needs to wait and see; continuous volume is a buying point: the bottom volume may only be a short rest, so be cautious. But if the trading volume continues to increase, it means that funds continue to flow in, which is a good time to enter the market.
5. Speculation depends on emotions, and trading volume depends on consensus: currency price fluctuations are affected by market sentiment, and trading volume reflects market consensus and investor behavior. Keeping up with trading volume and understanding emotional changes are the keys to seizing opportunities for cryptocurrency trading.
