I am Caiyue, after six years of ups and downs in the cryptocurrency world, I turned an initial capital of 80,000 into financial freedom. This market is never short of opportunities; what it lacks is respect for the rules and a constantly clear mind. Today, I condense the survival principles gained through six years of blood, sweat, and tears into six rules, each forged from hard-earned experience:
1. Sudden surge followed by a slow decline? That's the market maker washing the positions! The real danger is the 'guillotine.'
After a sharp price surge, if it starts to slowly decline, don't panic—this is the main force shaking off weak hands. But if there's a direct one-sided collapse without any rebound, run quickly! That's the ultimate trap for the greedy.
2. Rebound after a rapid drop feels like a snail? Be careful of becoming a bag holder!
After a waterfall decline, if the rebound is weak and lacks strength, it's often the main force quietly distributing positions. A true bottom rebound must be accompanied by a surge in trading volume, not a sluggish climb.
3. High volume can still push higher, but no volume at a high level will collapse immediately!
When the price hits a new high, if the trading volume continues to increase, it means funds are still supporting it and it can rise further. But if the volume at a high level shrinks like stagnant water, a crash is imminent.
4. Sudden surge in volume at the bottom? Don't rush in!
A sudden increase in volume after a long decline might be a false move by the main force to trick you into entering. A true accumulation signal is: after a period of low volume sideways movement, a continuous gentle increase in volume begins, with price and volume rising in sync.
5. The relationship between volume and price is crucial; emotional fluctuations hide secrets.
Candlestick charts are the 'face' of the market, while trading volume is the 'pulse.' Once price and volume diverge, such as rising but with shrinking volume or falling but with increasing volume, it often signals a trend reversal.
6. The ultimate realm of a trader: no self.
Without obsession, one can stand aside and wait for certain opportunities; without greed, one will not increase positions at the top; without fear, one dares to position against the market at its lowest point. This is not 'Buddhism'; it is clarity gained after enduring countless trials—the market only respects rules, not cleverness.
In ten years of cryptocurrency, I have seen too many 'genius' moments that were fleeting. Those who survive are always those who engrave the rules into their bones. Follow Caiyue for daily analysis of market signals, finding certainty amidst chaos. Markets may die, but survival rules will always exist. #山寨季何时到来？
