#SwingTradingStrategy Understanding the trends in the digital asset market is extremely important, and the following five basic laws must be mastered:
Law One: When a rapid rise in the market is followed by a slow decline, this often indicates that large amounts of money are gradually accumulating. The pattern of "rapid rise and slow decline" may actually be a preliminary stage for the next upward wave.
Law Two: After a sharp decline, only weak rebound movement can occur, and this is usually a sign of accelerating exits of large funds. This pattern of "sharp decline and weak rebound" indicates extremely high risks, and investors should maintain a high degree of vigilance.
Law Three: Rising prices with large trading volume does not necessarily mean that the market has peaked. This phenomenon may also be an expression of new money entering the market. Remember this point: the peak with continuously increasing trading volume can be monitored, while particular caution should be exercised with peaks that have decreasing trading volume.
Law Four: A sudden large trading volume after a sharp decline in prices does not always mean that this is the ideal buying opportunity at the bottom. In more than half of the cases, this may be a temporary trap during the downturn. The most reliable buying signal should be the appearance of a series of bullish candles with increasing trading volume on