Summarized 6 key insights, full of valuable content, hoping to inspire friends who see it.
1. Don't rush to stop loss during a sharp drop in the early market; it is usually an overreaction to negative news from the previous night. You can wait for market recovery and reversal. A large surge at the end of the market should not be blindly chased, as some main players like to test the market and induce buying, which may lead to a lower opening and pressure for accumulation the next day.
2. Make good use of trading volume, a practical technique; volume can indicate future market trends. A sustained increase in price with decreasing volume indicates strong control by main players, while a drop with decreasing volume suggests that panic selling hasn't occurred yet, and the lowest point hasn't been reached, so further declines are likely.
3. Learn to analyze sector top structures; typically, sector trends are formed by five waves. The first wave attracts follow-up buying, the second wave involves washing out and adjusting, the third wave is the main upward wave, the fourth wave involves complex divergences, and the fifth wave is for profit-taking. In this process, the third wave sees the largest gains, followed by the first wave, while the fifth wave has the least. However, market conditions are ever-changing, and it's not uncommon for the five-wave structure to fail, so it cannot be memorized blindly. When you notice the leading stocks in a sector are stagnating, a subsequent recovery won't continue with the previous strength, which likely indicates a peak has been reached.
4. Every time there is an acceleration at the peak of Bitcoin, you will see a certain sector surge, triggering a reversal in Bitcoin. Just check whether the performances of major leading stocks stop declining and start to rise; then the index will likely follow and recover.
5. Focusing solely on one strategy is better for beginners, especially new friends entering the market. Research one trading method and master its techniques; this is much more rewarding than trying to learn multiple skills at once. Being greedy often leads to losses, and a lack of proficiency can easily result in being taught a lesson by the market. Don’t switch strategies at will; take the time to learn deeply, and gradually you'll get into a good rhythm. After achieving stable profits, you can then learn more techniques for better integration.
6. Market movements are divided into three structures: upward, downward, and sideways. During an upward phase, the win rate of all technical indicators increases, while in a consolidation phase, using support and resistance for high selling and low buying is more efficient. In a downward trend, most indicators become ineffective. Using different tools for different phases will ensure you are well-prepared.
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