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Starting from 20,000 yuan to accumulating over 50 million, this process is not about luck through news, but built on a trading methodology that most retail investors overlook. This set of methods focuses on volume analysis and mental management. The following 6 trading rules have been repeatedly validated in live trading.
**Rhythm Recognition from the Volume Perspective**
Rapid rise and slow fall patterns often do not require panic. A quick surge followed by a slow decline is usually a manipulation by the big players to shake out weak hands. The key is to distinguish this kind of shakeout from genuine distribution. Be alert to flash crashes after volume spikes—these are mostly signals of trap trading and distribution.
In the opposite direction, rapid fall and slow rise are not bottom signals. A slow rebound after a sudden plunge is often a trap. The market's phrase "bottoming out" is just hearsay; big players never act according to retail investors' imagination.
**Two Key Points of Trading Volume**
At the top area, sustained volume fluctuations and a push higher still offer opportunities. But once trading volume suddenly shrinks and the market becomes quiet, the risk of a crash is already quite close.
At the bottom, volume expansion requires observation of persistence. A single-day volume spike rebound is often a bait. The real signal is a gentle increase in volume after consolidation with decreasing volume—this usually indicates big players are building positions.
**The Relationship Between Sentiment and Volume**
The essence of crypto trading is market sentiment. Trading volume is the most direct mirror of market consensus. Candlestick patterns are just surface phenomena; volume is the key variable that determines market direction.
**Four "Nouns" of Mental Management**
Traders who succeed in the crypto space often possess four psychological traits: no obsession (able to hold cash and wait for opportunities), no greed (avoid chasing highs at the top), no fear (dare to deploy during panic), no luck (rely on methods, not luck). These mental disciplines are more difficult and valuable than technical analysis.
The crypto market is never short of opportunities; what’s lacking is the execution power to control your hands and the insight to see through the situation. Most people don’t lose due to ability but because of a lack of reverence for the market.