Trading Pitfall Avoidance - Learn a Little Every Day
👉 If the price drops with decreasing volume after reaching a peak, it will continue to fall.
When the price retraces from a high point and is accompanied by a downward trend in volume, this is a dangerous signal. In the early stages of the decline, bullish traders may still harbor illusions and be reluctant to easily sell their holdings, while bearish forces gradually accumulate. As the stock price continues to decline, the trading volume fails to expand effectively, indicating that market panic has not been fully released, and selling pressure still exists. Due to a lack of sufficient buying support, the stock price will continue to decline under inertia, searching for new support levels. This process of decreasing volume decline is like a silent crisis, suggesting that the stock price is unlikely to find a bottom in the short term. Investors should remain highly vigilant and avoid premature bottom fishing to prevent greater losses.
Always remember the core of trading: Technique 10%, Position Management 40%, Profit Strategy 50%!
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Observation: BTC, ETC, BNB, GMT
