Five Hard Truths About Trading Volume

1. Sharp rise slow fall is accumulation, sharp drop slow bounce is distribution
Don’t be fooled by those K-line tricks
When the price surges sharply and then slowly declines on low volume, it’s often the whales shaking you out, testing your patience—don’t easily hand over your chips
Conversely, after a waterfall drop, if the price only bounces back slowly and weakly, it’s mostly the whales dumping, leaving retail traders to cheer themselves up—never reach out to catch that “falling knife”

2. High price without high volume is the real danger$ZEC
Many people panic when they see high volume at a top, but they’ve got it backwards
If volume continues to be high at the top, it means outside money is still rushing in, and the trend can still go a bit further
What’s truly scary is when the price stagnates at the top with volume as dead as a pond—that’s when the whales have quietly left, leaving only retail traders dreaming—that’s the most deadly

3. At the bottom, look for “accumulated volume,” don’t trust a one-day wonder
Newbies see a huge volume spike at the bottom and rush in, only to get stuck at the peak
Real whale accumulation is a gradual increase in volume over several days, like ants moving their colony, quietly eating up enough coins$JCT #美国VS土耳其
That kind of one-day huge volume is mostly from hot money doing a pump-and-dump—they pull up and run—don’t be fooled by the noise

4. In a ranging market, doing nothing is also a move
During a sideways consolidation, if you insist on day-trading every day, in the end all your money goes to the exchange as fees
My principle: if the price doesn’t reach my level, I absolutely don’t move. I’d rather miss a trend than make a bad trade

5. Always keep “life-saving money”
No matter how crazy the market gets, always keep 30% cash in your account—non-negotiable
Black swan events are not “if” but “when”
With bullets in your hand, you have a chance to turn things around after a crash; when others are fearful, you have the chips to pick up bargains
Trading, to put it bluntly, is a lonely practice, but we can learn from each other and huddle together for warmth