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๐ฅ 5 Price-Volume Rules That Veteran Traders Understand! Know Them to Avoid Pitfalls
Want to catch the trend while trading coins? Understanding the relationship between volume and price is key! Keep these 5 practical rules in mind:
1. ๐ Rapid Rise + ๐ข Downward Trend = Main Force Buying?
Rapid rise followed by slow decline, with a small drop โก๏ธ The main force may be accumulating quietly during the fluctuation! (Key to watch the volume!)
2. ๐ฅ Crash + ๐ Weak rebound = Dangerous selling!
After a sharp drop, it's slowly rising but can't gain momentum โก๏ธ Be careful of the main players secretly selling at high prices! โ ๏ธ Beware of a big drop!
3. ๐ Increased volume at the top โ immediate collapse? Decreased volume rise = run fast!
High volume at the top โก๏ธ Long and short battle, there may still be a play (but the risk is high!).
High position with reduced volume rise โก๏ธ No one is buying! Hurry and leave! This is the true exit signal!
4. โฌ๏ธ Bottom volume increased once = Don't rush! Continuous volume + Stabilization = Opportunity!
Bottom suddenly surged โก๏ธ may be a trap/midway, don't act impulsively!
Continuous increase in volume at the bottom + price stabilization โก๏ธ Real money is entering the market! Consider gradual positioning.
5. ๐ค Emotions set the rhythm, and volume determines consensus!
Short-term fluctuations reflect sentiment, and trading volume represents the strength of consensus!
High volume โก๏ธ The trend may accelerate (regardless of whether it rises or falls).
Low volume โก๏ธ No direction/low attention, trends are hard to take shape.
Don't just look at the price, consider the combination of sentiment + volume! Refuse to follow the crowd blindly!
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