5 Laws of Trading in the Cryptocurrency Market
1. Fast Rise and Slow Drop Indicates Accumulation. A rapid increase followed by a slow decrease indicates that the market maker is accumulating tokens, preparing for the next round of price increase.
2. Fast Drop and Slow Rise Indicates Distribution. A rapid decline followed by a slow increase signifies that the market maker is gradually selling off, and the market is about to enter a downward cycle.
3. Don't Sell at High Volumes, Run Away When There's No Volume. High trading volume at the peak may indicate further increases; however, if the trading volume at the peak shrinks, it suggests a lack of upward momentum, so exit quickly.
4. Don't Buy at Low Volumes but Consider Buying When There is Continuous Volume. A sustained increase in volume might indicate a downward continuation, which needs observation; continuous volume suggests that funds are continuously entering the market, making it worth considering a buy.
5. Trading Cryptocurrency is About Emotions, Consensus Equals Trading Volume. Market sentiment determines cryptocurrency price fluctuations, and trading volume reflects market consensus and investor behavior!
In fact, many things are understood by everyone, but if you can't control your hands and manage your mindset, you will ultimately suffer greatly! Risk management is an art! Listen to advice, eat well! Wisdom equals learning, if you can't see the market trends, you might as well look for help!
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