Five key iron rules for essential currency speculation, Depth analysis not to be missed!

1. The rise is fast and the fall is slow, and the market makers secretly appear

When a certain currency shows a rapid upward trend, but appears extremely slow in the retracement, one should be highly vigilant. It is highly likely that the market makers are quietly hoarding, collecting a large amount of chips for a carefully planned strong rally in the future. The underlying logic is that the market makers attract market attention through rapid upward movement, prompting retail investors to follow suit, and then gradually absorb the chips sold by retail investors at the low level during the slow decline, in order to achieve their goal of controlling the market and accumulating energy for the next significant rise.

2. The decline is sharp and the rise is slow, and the market makers sell early to prevent it.

On the contrary, if the coin price suddenly big dump without any signs, and then there is a slow recovery, like a snail crawling, it is highly likely that the manipulator is orderly selling off. The manipulator sells a large amount of chips at a high position, causing the coin price to plummet sharply, and the subsequent slow recovery is just to confuse retail investors and attract them to mistakenly think it is a good opportunity to catch the bottom and take over. At this time, the overall market trend may have quietly turned downwards, and investors must handle it cautiously and not be blindly optimistic.

Three, the top huge volume still has a chance, do not hesitate to run without volume

As the price of the coin rises to historical highs, if the Trading Volume remains high and active, it indicates that the market bulls are still strong and there is still potential and space for further upward movement. Because a large amount of trading means that many investors are actively participating in trading, the market heat is not decreasing, and funds continue to flow in to drive the price of the coin up. However, if the Trading Volume significantly shrinks in the top area and becomes very rare, this is undoubtedly a dangerous signal, indicating that the momentum to drive the price of the coin up is already insufficient, and there is a lack of upward momentum in the future. Investors should decisively exit and timely avoid the potential risk of a sharp decline.

4. When a large volume is initially released at the bottom, it is better to observe and not rush to enter.

When the coin price falls to the lowest point, Trading Volume suddenly increases sharply. Do not act impulsively and buy immediately. This is likely just a short-term technical rebound in the downward trend, not a true signal of bottom reversal. In this case, the market often needs more time to further consolidate the bottom and confirm the reversal trend. Investors should remain calm, be patient, and wait for the situation to become clearer.

At the bottom, the continuous increase in volume is a good time to enter the market.

If the Trading Volume can sustain at a high level and show a stable and expanding trend when the price is at a relatively low level, it indicates that funds are continuously flowing into the market and the longer force is gradually accumulating and occupying the advantage. At this time, investors can closely monitor the market dynamics, combine with other technical indicators and Fundamental Analysis, and buy decisively at the right time to ride the rising trend of the currency price and obtain investment returns.