Accurately grasping the timing of buying and selling is more important than selecting the right cryptocurrency!

Many friends in trading easily fall into the dilemma of "buying well but selling poorly", ultimately leading to profit reversal or even losses. Today, I will share some practical market signal judgment techniques to help everyone better identify trend turning points:

1. Volume-Price Divergence Warning Top Signal

If a pullback occurs during an uptrend but the trading volume does not significantly shrink, it indicates strong market support, and there is still upward momentum ahead.

When the price reaches a new high but trading volume continues to shrink, it indicates insufficient willingness to chase prices, and one should be wary of the risk of hitting a peak.

2. Golden Rule of Bottom Confirmation

When the cryptocurrency price is consolidating at a low level for a long time, do not blindly try to catch the bottom.

An effective bottom is usually accompanied by a "double bottom + volume breakout" structure. When the price pulls back to the previous low and then quickly rebounds with increased volume, it indicates a relatively safe entry opportunity.

3. True Opportunity After False Breakouts

If a sudden surge occurs during bottom fluctuations followed by a pullback, it may be a test by the main force.

Patiently wait for a second volume breakout above the previous high, as the reliability of trend reversal is higher at this time, often accompanied by significant price increases.

4. Trap Identification in High-Level Consolidation

Narrow fluctuations following a continuous surge, especially when long upper and lower shadows frequently appear, often indicate a phase of distribution.

Under this "gentle trap", although price fluctuations are small, the risk factor surges, requiring extra caution.#Circle扩大IPO规模