1. Rapid rise and slow fall indicates accumulation. A rapid increase followed by a slow decrease suggests that the major player is accumulating chips, preparing for the next round of rise.
2. Rapid fall and slow rise indicates distribution. A rapid decrease followed by a slow increase means that the major player is gradually selling off, and the market is about to enter a downtrend.
3. Do not sell when there is high volume at the top; run quickly when there is low volume at the top. High trading volume at the top may indicate that the price will continue to rise; however, if the trading volume decreases at the top, it suggests insufficient upward momentum, and you should exit quickly.
4. Do not buy when there is high volume at the bottom; continuous high volume can signal a potential buying opportunity. Continuous high volume indicates that funds are continuously entering, and buying can be considered.
5. Trading cryptocurrencies is about trading emotions; consensus is reflected in trading volume. Market sentiment determines the volatility of cryptocurrency prices, and trading volume reflects market consensus and investor behavior!
