How to Improve Your Winning Rate in Cryptocurrency Trading? The organization is divided into four sections.
Impulse Rise Correction Accumulation Rule
When a cryptocurrency experiences a short-term impulse rise followed by a gentle slope of price decline, it often signals that market makers are collecting cheap chips through oscillation. At this time, one should observe the relationship between volume and price. If the trading volume shrinks during the pullback, it indicates limited selling pressure, and the probability of subsequent price increase is high.
Rapid Drop Slow Rise Exit Warning Mechanism
After a single-day drop exceeding 15%, if the rebound shows a slow oscillating upward trend and the trading volume does not effectively increase, one should be cautious of market makers using the rebound to exit in batches. This pattern often appears at the end of an upward trend, and investors should set strict stop-loss orders.
Top Volume-Price Divergence Judgment Criteria
When the price reaches a new high accompanied by continuous volume increase, it indicates that the market is performing well, and one can continue to hold; however, if there is a volume-price divergence (new price high but trading volume significantly lower than before), this is an important signal of trend reversal, and one should immediately take profits and exit. Bottom Volume Confirmation Strategy
In a low-price area after a long-term decline, a sudden massive volume often represents the last outburst of bears, and blindly bottom-fishing poses significant risks. Only when the trading volume maintains above twice the average line for three consecutive trading days, and the price center gradually rises, is it a reasonable time to build a position on the left side.
Emotion-Driven Trading Model
The essence of the cryptocurrency market is a psychological game among the masses, and special attention should be paid to:
The relationship between social media mention volume and price Changes in exchange deposit and withdrawal data Divergence between derivative positions and price
When the market fear index (such as Bitcoin Volatility Index) breaks through the threshold, it often indicates a trend opportunity.$ETH