Five golden rules for currency speculation in the currency circle:
Rapid rise and slow fall are regarded as signs of accumulation: when the currency price rises rapidly, it falls back at a relatively slow speed. This is often the dealer or the main force quietly collecting chips to accumulate momentum for a larger subsequent rise.
Sharp fall and slow rise, beware of the risk of shipment: after the currency price falls sharply, if the rebound is not strong enough and it rises slowly, it is likely that the dealer is gradually reducing its position and the market is about to enter an adjustment or decline channel.
The top is huge, wait and see; the top is shrinking, leave quickly: when the currency price reaches a high point, if the trading volume is abnormally enlarged, it may mean that funds are still in the game, and there may be new highs in the short term; but if the trading volume shrinks sharply, it is a signal that the upward momentum is exhausted, and you should leave the market decisively.
The bottom is initially increased, intervene cautiously; continue to increase, buy at the right time: the bottom area appears to be increased, which may only be a false illusion of a short-term rebound, and you need to be vigilant; and if the trading volume continues to increase, it indicates that substantial funds are actively flowing in, and this is a good time to consider layout.
The essence of cryptocurrency speculation lies in emotions, and consensus shapes trading volume: every price fluctuation in the cryptocurrency circle is deeply imprinted with traces of market sentiment. Trading volume is a key indicator to measure the strength of market consensus and the activity of investor behavior. The stronger the consensus, the greater the trading volume, and the stronger the coin price. Therefore, cryptocurrency speculation should not only focus on the coin itself, but also have insight into changes in market sentiment and investor psychology.