$BTC
#币安上线INIT #TRUMP晚宴 #加密市场反弹 3 signals capture the potential for explosive growth stocks
1. Decreasing volatility: Before a significant price increase, there is usually a repeated "accumulation" phase, which means volatility decreases. The range of fluctuations from recent highs to lows is called volatility, and the accumulation period may last for several weeks or even months. The longer the accumulation, the larger the subsequent increase may be. Generally, stocks that will see a significant rise experience at least two contractions, and the last fluctuation is best kept within 5%. These types of coins are worth focusing on.
2. Significant decrease in trading volume: Trading volume reflects the activity level of buying and selling. When trading volume decreases, it indicates fewer sellers. According to supply and demand principles, if there are fewer sellers while the number of buyers remains the same or increases, the price is likely to rise. Often, before a significant price increase, trading volume falls to its lowest point in recent months.
3. Clear long-term upward trend: Except for coins that have sharply rebounded from overselling, most explosive growth stocks are in a long-term upward trend, making the possibility of a sudden significant price drop low. By using the 20-day, 50-day, and 120-day moving averages, when the moving averages diverge upwards, combined with the previous two characteristics, the probability of identifying stocks with explosive growth potential increases.