1. Buy horizontally and buy dips, do not buy vertically; the selling point is at the boiling point, meaning:
Buy when the price is stable or slightly retracing, avoiding blindly chasing highs when the price is rising sharply. When the market reaches its peak and is bustling with activity, it is often a good time to sell.
2. Continuous small rises are real rises, continuous large rises require exit.
If the price rises slightly and continuously, it is likely a genuine upward trend. However, if there are consecutive large rises, caution is warranted as it may signal an impending bubble burst; at this time, it is best to exit and observe.
3. A significant surge must retrace; do not dig deep pits or make large purchases.
After a sudden significant price increase, there is often a demand for retracement. If the retracement is not deep, do not buy easily. Real buying opportunities often arise after the price has undergone a deep retracement.
4. An accelerated main rise should see a peak; sell quickly during a rapid drop and sell slowly during a slow rise.
When the price accelerates during a main rise, it often indicates an impending peak. If the price drops rapidly, sell quickly; if the price only rises slowly, you can sell gradually.
5. A rapid drop with no volume is intimidation; a slow drop with volume means to evacuate quickly.
If the price suddenly drops significantly but the trading volume is not high, it may be market intimidation. But if the price drops slowly while the trading volume increases, caution is needed; this may be a signal of capital fleeing, and one should evacuate as soon as possible.
6. When the price breaks through the lifeline, do not hesitate to engage in swing trading.
Usually refers to some important technical indicators or moving averages. If the price breaks through these lifelines and continues to rise, do not hesitate to decisively engage in swing trading.
7. Pay attention to daily and monthly lines, build positions following the main force.
Daily and monthly lines are important tools for observing market trends. By carefully analyzing these line charts, you can better grasp the main force and trends in the market, thereby establishing your own positions.
8. When the price rises without volume, the main force is inducing buying; do not stand guard.
If the trading volume does not significantly increase during the price rise, it may be a trap by the main force. At this time, do not blindly follow the trend to buy, to avoid becoming a standing 'leek'. A decrease in volume to a new low is a sign of a bottom, and an increase in volume during a recovery is a good time to enter. When the price reaches a new low after a decrease in volume, it often signals a bottom. If the trading volume starts to increase and is accompanied by a price recovery, it is a good time to enter.