In the financial fields of contracts, spot trading, inscriptions, and NFTs, K-line charts are important tools for investors to judge market trends. They contain many key skills and rules, and the following mnemonics are valuable experiences summarized by seasoned investors. Mastering them can help you avoid detours in your investment journey and improve decision-making accuracy.
Trend judgment and trading timing: Buy horizontally and buy pits, do not buy vertically; sell points are found in the boiling point. Horizontal consolidation or market activity after digging pits often has more potential, and when market sentiment is boiling, it is a good time to sell.
Analysis of price increases and operating strategies: Continuous small rises are true rises, continuous large rises mean exit. Continuous small increases usually indicate a stable upward trend, while continuous large rises may signal a short-term peak; at this time, consider exiting.
Key points for sharp rises and pullbacks: A significant rise must pull back, avoid deep pits and large purchases. After a significant price rise, there is usually a pullback; if there is no obvious deep pit, do not easily buy in large quantities.
Main rise phase and peak signals: A main rise acceleration must see a peak; sell quickly during sharp drops and sell slowly during gradual rises. When the main rise enters an acceleration phase, it is often close to the peak; during a drop, sell quickly during sharp declines, and sell slowly during gradual rises.
Judgment in a downtrend: A sharp drop with low volume is intimidation; a slow drop with increasing volume means to withdraw quickly. A sharp drop but small trading volume may be a tactic of intimidation by the main force; while a slow drop with increasing volume indicates that the downtrend is established, and one should withdraw as soon as possible.
Price breakout and swing trading: When the price breaks through the lifeline, do not hesitate to swing trade. When the price breaks through a key lifeline, it means the trend may change; one can decisively engage in swing trading.
Multi-period analysis and position building strategy: Study daily and monthly charts carefully, and build positions following the main force. By comprehensively analyzing daily and monthly charts, one can better grasp the movements of the main force, thereby following the main force to build positions.
No volume during upward attacks and risk warning: If the coin price rises without volume, the main force may be luring investors; do not stand guard blindly. If the coin price rises without accompanying trading volume, it may be a lure by the main force, and investors should not blindly chase the highs.
Judgment of bottom and entry signals: A shrinking new low is a bottom signal; an increasing volume recovery means to enter. When the price shrinks to a new low, it may signal a bottom; while an increasing volume recovery is a positive signal to enter.
