8 Work Principles:
1. Buy horizontally, buy the dip, don’t buy vertically; selling point is where the market is bustling• Meaning: Buy when the coin price is stable or slightly retracing, avoiding blind chasing when the price is rising sharply. When the market reaches its peak and is bustling with activity, it is often a good time to sell.
2. Continuous small gains are real gains; continuous large gains require exiting• If the coin price sees a series of small increases, it is likely a genuine upward trend. However, if there are continuous large increases, it should raise caution as it might signal an impending bubble burst; it’s best to exit and observe at this time.
3. A significant rise needs a pullback; don’t dig deep holes or buy large• After a sudden significant rise in coin price, there is often a need for a pullback. If this pullback is not deep, then don’t buy easily. The real buying opportunity often appears after the price has undergone a deep pullback.
4. Major acceleration should reach a peak; sell quickly on a sharp drop and sell slowly on a gradual rise• When the coin price is accelerating in its main upward phase, it often indicates that a peak is about to be reached. If the price drops rapidly, sell quickly; if the price is only rising slowly, then you can sell gradually.
5. A sharp drop with low volume is intimidation; a gradual drop with increasing volume requires quick exit• If the coin price suddenly drops significantly but the trading volume is low, this may be market intimidation. However, if the price drops gradually but the trading volume is increasing, then caution is necessary.
6. Price breaking through the lifeline; do not hesitate to swing trade• The lifeline usually refers to some important technical indicators or moving averages. If the coin price breaks through these lifelines and continues to rise, do not hesitate, decisively engage in swing trading.
7. Pay attention to daily and monthly lines; build positions alongside the main force• Daily and monthly lines are important tools for observing market trends. By carefully analyzing these charts, you can better grasp the main force and trends in the market, allowing you to establish your positions.
8. If the coin price rises without volume, don’t stand guard against the main force’s bait• If the coin price is rising but there is no significant increase in trading volume, this may be a trap set by the main force.
