After the market performance in May, everyone can see that last month a large bullish candlestick was formed.
When that bearish candlestick broke below 2000 USD in April, the market was in extreme panic, with many voices saying that Ethereum would fall below the previous low of 880 USD, leading many people to cut losses around 1400-1500, including altcoins.
But when that hammer candlestick appears, those of us who learn the potential dragon trading strategy know very well that when an important support shows a hammer candlestick, there's no way to cut losses at this position; that would be the most erroneous approach.
When we can understand the market trend, short-term floating profits and losses become unimportant, because we haven't reached the final result yet.
But if you can't understand the market, many people cut losses after April and missed the rise in May. Floating losses turned into real losses. Although I had a floating loss of 300,000 last month, May has passed, and now the floating loss is basically gone.
Therefore, in investing, direction is very important. If you always rely on your feelings, swayed by short-term market fluctuations and the volatility of your account, leading to confusion in trading and blind trading, you will ultimately be harvested by the market.
Now, many people in the market are saying that this wave of increase is just a rebound to lure in more buyers, and that a big drop will follow. Is that true?
Will the market experience a significant drop? First, we need to judge whether the upward trend has ended, whether there are any bearish signals, and we must have a basis for that.
Last month, a large bullish candlestick was formed, and this large bullish candlestick, combined with the previous two candlesticks, created a 'doji morning star' pattern.
When a 'doji morning star' appears at an important support level, it is a reversal signal, indicating that the trend of the past few months is about to reverse.
Moreover, this large bullish candlestick is characterized by increased volume, indicating that the bullish force is very strong.
Although it broke the important support of 2000 earlier, it regained that level with increased volume last month, which also indicates that the bullish force is very strong.
No signs of weakness in the bullish trend have appeared, let alone bearish signals. If there are no bearish signals, then how can the market drop?
It's like summer, when the sun shines every day, and there are no signs indicating rain. If you worry about a heavy downpour all day, carry an umbrella, or are afraid to go out, it seriously affects your life.
The same goes for the investment field. If you can't understand the market, worrying about this and that all day, being anxious when seeing prices rise, and worrying about a big drop with every surge, without knowing whether it's the beginning or the end of the upward trend, you will miss the best opportunities and end up entering the market at the wrong time. Small circles are currently laying out strategic orders.
