Volume Change Mnemonics
During a Downtrend:
1: If volume increases but price doesn't fall, it will rise (reversal)
2: If volume increases and price falls, it will crash (acceleration)
3: If volume decreases and price falls, it will continue to fall (weaker buying pressure)
4: If volume decreases and price doesn't fall, wait longer (weaker selling pressure)
5: If the closing line is a doji, short positions can take profit first (beware of market reversal)
6: If there is a doji followed by a further decline, short positions can re-enter
During an Uptrend:
1: If volume increases but price doesn't rise, it will fall (reversal)
2: If volume increases and price rises, it will soar (acceleration)
3: If volume decreases and price rises, it will continue to rise (weaker selling pressure)
4: If volume decreases and price doesn't rise, wait longer (weaker buying pressure)
5: If the closing line is a doji, long positions can take profit first (beware of market reversal)
If there is a doji followed by further increases, long positions can re-enter
Note:
1: The above mnemonics should be observed in conjunction with trading volume and different time frame candlestick levels. Do not confuse the use of time frames; trade according to the appropriate time frame.
2: Extreme market conditions are not applicable (e.g., news-driven rallies/crashes)
3: The above mnemonics are accumulated from my years of cryptocurrency trading experience and are for reference only, not investment advice!
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