Cryptocurrency Knowledge
1. If the price of a cryptocurrency trades sideways at a high level and then breaks higher, seize the opportunity to sell; if the price of a cryptocurrency trades sideways at a low level and then reaches a new low, there's a high probability of a good opportunity to sell. When the price of a cryptocurrency trades sideways at a high level and then reaches a new high, be wary of major players trying to lure in more investors and don't hesitate to reduce your position or exit the market. If the price of a cryptocurrency trades sideways at a low level and then breaks a new low and then quickly recovers, it's likely the final round of trading by major players, so be firm and unwavering.
2. In a negative market environment, a cryptocurrency trading sideways against the trend will rise, and a small rise against the trend will lead to a large rise. In a positive market environment, a cryptocurrency trading sideways against the trend will lead to a small fall, and a small fall against the trend will lead to a large fall.
3. Increase your position only when you make money, and don't spread your losses evenly. This may break the common wisdom of many traders. You should increase your position when the price breaks through the previous high, not add to it when it continues to fall. This will only increase your losses, and eventually you will be unable to move. You must cut losses and let profits run. 4. Once you've identified the bottom price, the market will generally rise in a two-step-forward-one-step-back pattern. Don't be suspicious at this point; there will often be a big surprise later, especially when the trend is upward, where there will be a simultaneous pullback. Don't get out of the market rashly.
5. Top-tier traders first look at the sector, while second-tier traders only look at individual coins. Third-tier traders look at indicators, and unranked traders only gamble. This means that when buying a coin, we should first consider the sector. Only by investing in hot sectors will it have high popularity and a high win rate. Then, consider the token itself. Those who only look at indicators are novices, and those who look at everything else are gamblers.
6. Indicators change with volume and price, so volume and price are the root of indicators. Ignoring volume and price and relying on indicators is a sign of a scare. Lots of bids are calculated based on coin price and trading volume, so true technical analysis requires considering both volume and price. Price increases require significant capital. 7. For upward trends, look for support; for downward trends, look for resistance. When the price is rising, trading against support lines has a high success rate, offering opportunities for buying low on pullbacks. During a downward trend, trading against resistance lines has a high chance of success, offering opportunities for shorting or exiting the market. $BTC
