《Heartbreaking! Retail investors are always 'played' by the major players. Learn volume and price analysis to turn the tables!》
When trading stocks or cryptocurrencies, we need to understand these volume and price trends.
If the market quickly rises and then slowly falls, it is highly likely that the major players are accumulating shares. The major players first drive the price up to attract attention, then slowly let it drop to deter trend-followers from chasing, taking the opportunity to collect shares at lower prices, preparing for a future rise.
If the stock price sharply drops and then slowly rises, be wary of major players unloading shares. The major players create panic with a sharp decline, causing retail investors to sell off, and then slowly pull up the price to create a false sense of stability, distributing shares at high prices. At this point, the market is very likely to decline.
Top volume is crucial. When the stock price reaches a high level with increased volume, it indicates a large divergence between bulls and bears, which may lead to further increases, but it could also mean that the price may not move higher, so close attention is needed. If the top volume decreases, it indicates a decline in market enthusiasm, and the upward trend is weak; it's time to run, don't wait for a sharp decline.
Bottom volume also has its implications. A significant initial increase in volume at the bottom may indicate a continuation of the decline, so don't rush in; observe first. If the bottom continues to see increased volume, it indicates that funds are coming in, strengthening the bottoming signal. Combined with other indicators and fundamentals, it may be considered an entry point.
The cryptocurrency market is greatly influenced by emotions; trading volume reflects market sentiment and investor behavior. High emotions lead to high trading volume, while low emotions lead to low trading volume.
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