Core Logic of Cryptocurrency Trading

1. Response to High and Low Consolidations: After a high-level consolidation and subsequent rise, be cautious of manipulation by major players and decisively reduce positions to exit; after a low-level consolidation and a new low followed by a quick recovery, it is highly likely the major player is conducting a final washout, so hold your positions firmly.

2. Judgment of Counter-Trend Market Conditions: In a poor market environment, a counter-trend consolidation of the coin price is likely to rise; a small counter-trend increase has a high probability of leading to a significant rise; in a good market environment, a counter-trend consolidation of the coin price may lead to a slight decline, with a small counter-trend decline likely resulting in a significant drop.

3. Position Management Principles: Only increase positions when making a profit, and add to positions when the coin price breaks through previous highs; never average down when losing, to avoid compounding losses, and ensure to cut losses and let profits run.

4. Grasping Bottom Trends: After identifying the bottom price, the coin price often exhibits a pattern of "advance two, retreat one" in its rise, especially during an upward trend that is often accompanied by a rise and washout, do not exit easily, as there is a high probability of surprises ahead.

5. Priority in Coin Selection: Top-tier players first look at sectors, focusing on hot sectors to enhance popularity and win rate; second-tier players only look at individual coins; third-tier players rely on indicators; non-tier players rely purely on gambling.

6. Core of Technical Analysis: Volume and price are the root indicators, and indicators change with volume and price fluctuations. Relying solely on indicators without considering volume and price can lead to mistakes in trading; price increases require substantial capital support, thus combining volume and price analysis is essential.

7. Focus of Trend Operations: In an upward trend, look for support, as a retest of the support line presents a good buying opportunity, operating based on the support line has a high success rate; in a downward trend, look for resistance, encountering a resistance line is a good opportunity to short or exit, operating based on the resistance line has a high success rate.#币圈 #区块链超话