#美SEC推动加密创新监管 In the past few years of trading, I have found that many people are using a bunch of flashy indicators, and as a result, they become more and more confused. In fact, there are only two truly useful things - looking at volume to discern authenticity, and using moving averages to determine direction.

Let's talk about the issue of trading volume. When prices rise or fall, you need to see if there's real money coming in. For example, if the price of a coin goes up and the trading volume increases, it indicates that there is capital pushing it, which is reliable; if the price rises but the volume shrinks, then it's likely false and could reverse at any moment. The same goes for when prices drop; if it drops sharply with high volume, it means there are indeed people exiting; if it drops slowly with low volume, it might just be a short-term adjustment. There's another pitfall to watch out for: if the price hits a new high but the volume has declined, or if it drops to a new low with no volume, these situations are often reversal signals and should be approached with caution.

Looking at the moving averages again. I generally focus on the MA5, MA10, and MA30 lines. The upward trend is very obvious, with the short-term moving averages above the long-term moving averages, and they are spreading upwards. The K-line is basically above the moving averages, and pullbacks won’t easily break below them; if the short-term moving averages are pressed down by the long-term moving averages and continue to move downwards, that indicates a downward trend, and any rebounds hitting the moving averages will be pushed down again; the most troublesome is when there is a sideways movement, with several lines tangled together and the K-line jumping around chaotically. During such times, I won’t make a hard judgment.

A final reminder: When the moving averages are tangled and the trading volume is chaotic, do not rush to make a move. Wait for the moving averages to show a direction and for the trading volume to follow, then observe 2-3 candlesticks to confirm; this way, the operation is much more stable.