Why do you always buy the dip halfway when you catch the bottom?


Brothers, let me explain the logic of the dog farm to everyone. If the coin you bought has been continuously falling for several months and suddenly a large bullish candle appears at the bottom, remember, do not chase after the rise, do not chase after the rise. Many people think, finally it's time for me to catch the bottom, so they go all in, only to find out they are halfway up the mountain! Let me explain why you shouldn't catch the bottom when a large bullish candle appears, and the possible situations that may arise.
First of all, the first situation is to look for bullish signals. If the market makers are ready to push up at this level, they generally will not continuously pull up several large bullish candles. Even if they do pull up a bullish candle, they generally will experience a pullback. The reason why the market makers pull up a bullish candle at this level is either because they have reached their cost price, or because they cannot get low-priced chips and need to push up to let the previously trapped people sell off, in order to obtain more low-priced chips. So think about it, if the market goes up a little bit, and you have been trapped for several months, will you sell off? Obviously, many people will sell off to get out of the trap. At this time, the coin price will inevitably be smashed down. The market makers cannot protect the market and push up at this level. For the market makers, they need low-priced chips, which is why it is easy for the bottom to pull up a large bullish candle to experience a pullback. Generally, it will pull back more than 50% of the highest price, so at this time, never chase after the rise.
The second situation is to lure more sellers. If the market maker's inventory is not yet sold out, or the selling price is too low, at this time, the market maker will lure more buyers to buy, letting those who chase highs and sell lows enter the market to take over.
Under what circumstances can you catch the bottom?
If a coin is rapidly falling, and during the fall, a massive volume appears at the bottom, followed by a quick rebound within 15-30 minutes, forming a needle-like line, in this situation, it is possible to boldly catch the bottom. Why? The massive volume at the bottom during the fall indicates that the institution is buying here, because retail investors dare not buy when it falls rapidly, they only want to sell, only institutions will sweep goods at this position. So why the quick rebound in 15-30 minutes? Because the institution wants to take the chips and does not want to share low-priced chips with retail investors, so it must rebound quickly.
This is the logic of buying the dip, hope it helps you!#币圈观察员
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