财经少华
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Not all upward points are buying points
Some upward movements are actually traps designed to attract greedy investors. A true buying point must meet two key factors: a bullish structure and the cost of going long.
1. Bullish Structure
Any upward movement lacking a bullish structure is illusory; even if there is a consecutive rise, a significant drop may follow. A bullish structure refers to a visible upward trend; cryptocurrencies in a downward trend should not be considered. Only under an upward trending structure can upward points potentially become buying points, but this is not guaranteed.
2. Cost of Going Long
There is no need to study the reasons behind the rise; simply focus on the average cost and its changes. Buying points often appear near the cost of going long. If the holding cost is significantly higher than the average cost, it means the buying price is too high.
Only when both the bullish structure and the concentration of the cost of going long are satisfied can a true buying point and accumulation opportunity arise. Market trading should wait for buying points that align with one's trading strategy, avoiding blind operations. Most investors should rely on these two key factors to avoid building positions in the middle of a rise and buying at high levels, thus improving the success rate of their investments.
Some upward movements are actually traps designed to attract greedy investors. A true buying point must meet two key factors: a bullish structure and the cost of going long.
1. Bullish Structure
Any upward movement lacking a bullish structure is illusory; even if there is a consecutive rise, a significant drop may follow. A bullish structure refers to a visible upward trend; cryptocurrencies in a downward trend should not be considered. Only under an upward trending structure can upward points potentially become buying points, but this is not guaranteed.
2. Cost of Going Long
There is no need to study the reasons behind the rise; simply focus on the average cost and its changes. Buying points often appear near the cost of going long. If the holding cost is significantly higher than the average cost, it means the buying price is too high.
Only when both the bullish structure and the concentration of the cost of going long are satisfied can a true buying point and accumulation opportunity arise. Market trading should wait for buying points that align with one's trading strategy, avoiding blind operations. Most investors should rely on these two key factors to avoid building positions in the middle of a rise and buying at high levels, thus improving the success rate of their investments.
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