$BTC $ETH shares 5 high-quality investment insights to help you improve your trading understanding:
1. Don't panic during sharp declines in the early session; it is often an overreaction to negative news by the market. Be patient and wait for the market to recover. Avoid chasing high during a big rise in the late session; be cautious of the main force testing the market to lure in buyers. It is common for the next day to open lower for accumulation.
2. Trading volume is a core indicator: a rise in price with shrinking volume reflects strong control by the main force, while a decline in price with shrinking volume indicates that panic selling has not fully played out, suggesting the downtrend will continue.
3. Sector rotation five-wave rule: Wave 1 builds momentum → Wave 2 consolidates → Wave 3 main rise (largest gain) → Wave 4 divergence → Wave 5 distribution. Focus on opportunities in Wave 3; when the supplementary rise loses strength, it often signals a peak.
4. Market reversal signals: When mainstream coins peak, altcoins often rise against the trend. At this time, observe whether leading coins can stop falling and rebound, which often indicates that the index is about to reverse.
5. Focused success rule: New traders should avoid greed and seeking to do everything. Instead, deeply cultivate a single trading strategy until stable profits are achieved, and then gradually expand into other techniques to achieve comprehensive understanding.
