Let me tell you a very practical knowledge point [Efforts without results]
Just like when we are in love, you bought a cake and sent flowers, she accepted the gift but didn't let you kiss her, and asked you to hold hands, which counted - maybe your relationship has just started, but if she didn't even say thank you and turned around and left, then we know that she is not interested in us, and efforts have no results, it's time to stop loss.
For example, you are about to take an exam and you are memorizing formulas at the last minute, but the teacher tells you that you won't get points just for writing formulas, so do you still want to continue studying? It's useless to learn, and efforts without results are better than playing games.
It is reflected in technical analysis:
Efforts correspond to trading volume
Results correspond to the amplitude of price changes
On the K-line, you see many people buying, and the trading volume is huge, but the price does not rise. What does this mean?
It means that the main force is shipping, which is a dangerous signal in the rise. Figure 1.
On the contrary, in the decline, you see huge trading volume, but the price can't fall. Why is this?
It means that retail investors are selling in panic, and the main force is taking the opportunity to stock up, so this is a signal to stop the decline. Figure 2.
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