In the virtual currency market, it is crucial to identify the timing of bottom-fishing or top-selling.
Xiao Ai has sorted out 5 key signals to help you grasp the market trend:
1⃣️Continued rise signal: If the currency price has a small correction in the upward trend, but the trading volume remains stable, this usually indicates that the upward trend will continue. However, if the currency price reaches a new high and the trading volume decreases, that is, a shrinking rise occurs, which may be a sign of the market peaking.
2⃣️Bottom buying opportunity: When the currency price is sideways in the bottom area, it is not advisable to rush to buy. You should wait for the price to fall further to a new low and then rebound quickly, and recover the previous decline, which is often a good buying signal.
3⃣️Big rise after breakthrough: If a currency suddenly rises after a period of sideways trading at the bottom, breaks through the sideways range, and then falls back and falls below the sideways range, this may be a prelude to the market preparing for a larger increase. When the currency starts again, it should be closely watched.
4⃣️ Risk warning of inducement to buy more: If the price of a currency enters a sideways state after setting new highs, and there are multiple small increases followed by declines, this may be a signal of market inducement to buy more. Investors should be cautious in chasing high prices to avoid falling into risks.
5⃣️ Risk management: When conducting trading operations, it is recommended to use limit orders to take over goods, and strictly set stop loss and take profit points to effectively manage risks and prevent funds from being locked up.
Through the observation and analysis of these signals, investors can more accurately grasp the buying and selling opportunities in the market, thereby making more informed decisions in a volatile market.
