Knowledge Point! Circle it for me to remember 😁😁
Is the coin in an absolute selling trend, or is it in the second or third wave of upward space?
Without exception, this has become the biggest challenge for spot traders in mid-term operations.
Here is a somewhat clumsy but useful method that focuses purely on technical analysis, removing news factors.
From the current (bear market) perspective:
1. Find the starting point of the coin; most coins follow the market, so find the starting point of the market.
2. Start observing the coin's running trajectory from the starting point and find the first pullback point, which generally shows a shrinking volume crash trend.
3. After the crash, rebound into the second upward wave, find the second pullback point, which is generally a shrinking volume crash combined with a sideways trend.
4. Then continue to rebound and start the third upward wave, and find the peak of the third upward wave.
5. After the peak, regardless of whether the trend is a downward fluctuation, sideways, or continues upward, it is judged to be the absolute selling phase.
It is not easy for coins to reach the third upward wave in a bear market; the above operation mode adheres to the principle of "better to miss than to be wrong."
So mid-term traders should now look at the coins they hold; if they are unfortunately in the absolute selling phase, either sell directly or try for one last small rebound before selling.