#币圈 years, summarized the judgment of the dealer's direction, even beginners can understand it in seconds!
In the ever-changing cryptocurrency market, understanding the dealer's operation signals is the key to profitability! Master these 4 core patterns to easily identify market traps and seize trading opportunities!
1. Rapid rise + slow decline, dealer accumulation signal
When a certain cryptocurrency experiences a short-term surge followed by a slow decline, it indicates that the dealer is quietly accumulating! By rapidly driving up the price to create a short-term increase to attract attention, and then slowly declining to wash out retail investors, if the trading volume increases simultaneously, it is advisable to pay close attention and wait for the right moment to start trading.
2. Sudden drop + slow rebound — dealer selling warning
If the cryptocurrency price experiences a cliff-like drop followed by a slow rebound, it is highly likely that the dealer is offloading their position. By utilizing a rapid decline to create panic, retail investors sell off, and then the dealer slowly recovers their chips. Once this pattern appears, it is recommended to take profits or cut losses in time to avoid subsequent risks.
3. Volume mystery at the top — escape the peak to save oneself rule
① Huge volume at the top: A massive trading volume appears at the top, indicating fierce competition between bulls and bears. Although there may be a second chance to push higher, the risk is extremely high, so it is advised to reduce positions in batches.
② Volume-price divergence: A sudden decrease in trading volume at the top indicates that the upward momentum is exhausted. At this time, one should decisively liquidate positions to avoid being trapped at high levels.
4. The emotional code behind trading volume
The rise and fall of cryptocurrency prices are essentially a battle of market emotions, and trading volume is a direct reflection of those emotions:
① Volume and price rise together: Market sentiment is high, and bulls dominate.
② Volume shrinks while price falls: Market pessimism prevails, with strong wait-and-see sentiment.
③ Volume-price divergence: Be alert to trend reversals and adjust strategies in a timely manner.