The dealer's drawing generally has 7 stages, which stage is your coin in?
1. Accumulation Stage, Box Fluctuation.
The market often feels like it is about to break through but fails to do so, with overall trading volume starting to increase, and the top and bottom of the box being volume peaks. The decline happens quickly, while the rise is often slow.
2. First Stage of Rally, this stage is generally faster, as retail investors have been misled many times in the accumulation stage and often do not dare to chase the rise, so it quickly pulls away from the cost area.
3. First Stage of Washout, the first stage of washout is often deeper, with a certain decrease in volume, making retail investors think that the stock price will soon break the previous low and thus hesitate to enter.
4. Second Stage of Rally, slow speed, long duration, initially unsure whether it is a rebound or a reversal. After breaking through the high point of the first stage, retail investors are often caught off guard, leading to another storm.
5. The washout in the second stage is often faster than in the first stage; only a sharp drop will instill fear. At the same time, the rally speed is also fast, aimed at forcing in-house investors to sell at a loss and making those outside unable to consider and thus unable to enter in time.
6. Third Stage of Rally, the fastest speed and the largest amplitude of increase. The purpose of this wave of increase is to attract the attention of the entire market, often hitting the limit up multiple times, drawing in retail investors and prompting them to enter at high positions.
The characteristic of this stage is that the price volatility begins to increase, even reaching the extreme limits. On one hand, it is pulling up while selling off, and on the other hand, it builds retail investors' confidence in its rise.
#7. The final stage is the selling phase. The selling phase actually begins during the last wave of rally; it just depends on the extent of selling. If sufficient selling occurs during the rally, the final stage will see a direct significant drop in coin price. Insufficient selling will require high-level fluctuations. At this time, I should focus on the turnover rate.