5 Laws of Trading in the Crypto Market
1. Rapid rise and slow fall indicates accumulation. A quick rise followed by a slow decline means that the market makers are accumulating shares, preparing for the next round of increase.
2. Rapid fall and slow rise indicates distribution. A quick decline followed by a slow increase means that the market makers are gradually selling off, and the market is about to enter a downtrend.
3. Don't sell when there is high volume at the top; run away when there is low volume at the top. High trading volume at the top may indicate further increases; however, if the trading volume shrinks at the top, it indicates insufficient upward momentum, so exit as soon as possible.
4. Don't buy when there is high volume at the bottom; continuous high volume may indicate a buying opportunity. High volume at the bottom could be a continuation of a downtrend, requiring observation; continuous high volume indicates ongoing capital influx, which may be a good time to consider buying.