Phase 1: Bottom accumulation and upward shock

Main force action: The main force gradually intervenes in the market at this stage, slowly raising the stock price and creating shocks to cover the position building behavior. Through this operation, the main force can accumulate a large number of chips at a lower price, while the market as a whole is still in a wait-and-see state.

Market reaction: Market sentiment is generally depressed, and investors have become cautious after experiencing the previous decline. Most investors remain vigilant about market uncertainties and are reluctant to enter the market. However, some investors with a keen sense of smell have begun to notice the bottom signs of the market and gradually buy stocks at low prices.

The second stage: breaking through the previous high and establishing the trend

Main action: At this stage, the main funds increase their efforts to push the stock price to break through the previous high, thereby establishing an upward trend on a technical level. At this time, trading volume increased significantly and market confidence gradually recovered. Market reaction: Traders on the right began to pay attention and enter the market. They relied on trend trading principles to decisively buy before the stock price broke through. However, most investors are still in a wait-and-see mode, and some even choose to go short against the trend because of fear of early declines. In the market, the trend is clear, with positive inflows of capital and sentiment driving further gains in stock prices.

The third stage: overall rise, market frenzy

Main force action: The main force funds greatly push up the stock price at this stage, and the market sentiment reaches its peak. A large number of good news frequently come out, attracting more investors to enter the market. The main force gradually starts to ship out and lock in profits.

Market reaction: Market sentiment is extremely optimistic, and almost all investors actively enter the market to pursue high returns. At this time, the market trading volume is abnormally enlarged, and individual stocks and sectors generally rise. However, as the main funds gradually withdraw, the market top gradually forms. Many ordinary investors fail to exit in time due to greed and blind optimism, and are eventually trapped at high levels.

Psychological analysis:
Phase 1: The overall market sentiment is low, with strong fear and uncertainty. A few investors with keen insight begin to make arrangements.

Phase 2: Market confidence gradually recovers, trend traders enter the market, and market activity increases, but there is still a certain degree of uncertainty.

The third stage: Market sentiment is extremely optimistic, blind optimism and greed spread, and the bubble expands rapidly.

Risk Management
Phase 1: Strictly control positions and enter the market cautiously to avoid the risk of being trapped due to premature buying.

Phase 2: Increase your position as the trend continues, but stay alert and set a reasonable stop loss to control risk.

The third stage: gradually reduce positions, lock in profits, avoid being stuck at high levels in the market frenzy, and maintain a rational investment mentality.

Market Signals
Phase 1: Focus on market trading volume and capital flows, especially changes in policies and macroeconomic indicators.

Phase 2: Observe the breakthrough of technical indicators such as moving averages and trend lines, and pay attention to the rotation of hot market sectors.

The third stage: The market trading volume is abnormally enlarged, individual stocks and sectors generally rise, the market sentiment is extremely optimistic, and there are signs of "mad bull".

As an investor who has been working in the cryptocurrency world for many years, I am willing to share my experience and insights with you. If you are interested in the cryptocurrency world but don’t know where to start, you may wish to follow my homepage and discuss the mysteries and future possibilities of the cryptocurrency world with me. Click on the avatar to find me.

#美国PCE数据将公布 #MegadropLista #MKR