1. Rapid rise and slow fall indicates accumulation.
A rapid increase followed by a slow decrease suggests that the market makers are accumulating shares, preparing for the next round of price increase.
2. Rapid fall and slow rise indicates distribution.
A quick drop followed by a slow rise means that the market makers are gradually selling off, and the market is about to enter a downward cycle.
3. Don’t sell when there is high volume at the top, but run when there is low volume at the top.
High trading volume at the top may indicate further increases; however, if the trading volume at the top shrinks, it indicates insufficient upward momentum, and one should exit quickly.
4. Don’t buy when there is high volume at the bottom, but consider buying when there is sustained volume.
High volume at the bottom may be a continuation of a downtrend, which needs observation; sustained high volume indicates continuous inflow of funds, which can be considered for buying.
5. Trading cryptocurrencies is about trading emotions; consensus is reflected in trading volume.
Market sentiment dictates cryptocurrency price fluctuations, and trading volume reflects market consensus and investor behavior!
