Ten years of trading cryptocurrencies, entering the market with 50,000, and now supporting my family through trading! It can be said that I have used 80% of the methods and techniques in the market. If you want to take trading as a second profession to support your family, sometimes listening and observing more will help you discover things outside your current understanding, which can at least save you 5 years of detours!
How to determine if a cryptocurrency has formed a breakout? You can start from four aspects: volume, price, time, and space:
1. Volume: Before the troops move, the grain and grass must go first. In the early stage of trend formation, an increase in volume is essential, especially the first increase in volume after a long period of sideways movement, which we need to pay close attention to. However, this is not usually the best entry point. Generally, after a trial adjustment and the main force has finished washing out, the second increase in volume is our real opportunity; #币圈暴富
2. Price: Generally, we look at the closing price. Regardless of how volatile the process is, if the closing price can stabilize, it indicates that the main force is serious! This is the key to distinguishing between true and false breakouts. In summary, if the closing price can stay above the resistance level, the probability of a true breakout significantly increases; #美国半导体关税
3. Time: Before a breakout occurs, the cryptocurrency price should ideally have undergone a long period of reduced volume and sideways movement, lasting more than 3 months, with a chip concentration of less than 10%. Only then can the main force have enough buying power, leading to a stronger upward momentum later; #币安投票下币
4. Space: You need to identify the key resistance levels. These resistance levels could be the starting point of a previous volume adjustment, the neck line of a W-bottom, head and shoulders bottom, or an integer threshold of the cryptocurrency price. As long as the resistance level is clear, once the cryptocurrency price breaks through later, the potential for increase can be easily assessed; #比特币与美国关税政策
These four dimensions are the foundation for judging sideways breakouts, aimed at deepening everyone's understanding!
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