Viewforstar # 43 - meeting between Putin and Trump
—> results will depend on volume and price
So let's discuss this content with forstar to gain more experience in trading strategies in the crypto market, traders:
🔎 Trading Strategy Based on Volume & Price
In the crypto market, volume (trading volume) is always the 'lifeblood' that sustains price trends. Understanding how volume moves correctly will help traders stay ahead of the market.
1. Golden Rule
• Volume confirms trend: Price rises while volume also rises ⇒ sustainable trend. Price rises but volume decreases ⇒ easy to reverse.
• Volume is king, price is queen: Volume leads the way, price will follow.
• Volume spikes often signal a phase shift (breakout, distribution, or spring in Wyckoff).
2. Volume – Price Relationship
• Price increase + Volume increase ⇒ Whales are accumulating/pushing, strong long signal.
• Price decrease + Volume increase ⇒ Sellers are aggressively unloading, short signal.
• Sideway + Volume decreasing ⇒ Accumulation, preparing for a breakout.
• Sideway + Unusually high Volume ⇒ Distribution, risk of price collapse.
3. Trading Strategy
• Trend following: Only trade when volume supports.
• Long when breaking resistance with large volume.
• Short when breaking support with a surge in volume.
4. Risk Management Notes
• Set SL at 5–7% to avoid falling into bulltrap/beartrap.
• Capital allocation: no more than 30% of capital for a single intraday order.
• Always observe BTC.D and BTC as a reference before trading altcoin.
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📌 In summary:
• Volume spikes → act immediately (long/short in the direction of the breakout candle).
• Volume quiet → stay out, wait for a big move from the sharks.
• Remember: 'Volume never lies.'