Every day a practical little trick about price and volume, understand how to play in waves during a bear market!
For those of us who trade in spot markets, the most frustrating thing is——whether the coins in hand can still rise (second wave, third wave), or if they have already entered the phase of major selling, and holding them will only lead to losses?
Today I will share a simple method that does not rely on news but focuses solely on technical analysis, which has been tested and proven effective in bear markets. The core principle is: better to miss a rally than to fall into a trap and get stuck!
The steps are actually quite simple, just follow along:
1. First, find the starting point. Most coins follow the overall market, so just keep an eye on the starting point of the market, there's no need to fixate on a single coin;
2. Look back from the starting point and find the first wave of pullback. Usually, this involves a sharp decline with low trading volume, and this is the first pullback point;
3. After the decline, a rebound occurs, which is the second wave. Once the second wave is complete, a second pullback will follow—typically after a low-volume decline, it will need to consolidate for a while, and this is the second pullback point;
4. After the consolidation ends, it will surge again, which is the third wave. Focus on the peak of the third wave, do not wait until it drops to react;
5. As long as it has passed the peak of the third wave, regardless of whether the subsequent movement is a downward fluctuation, horizontal consolidation, or looks like it's still rising, it should be classified as the "absolute selling stage!"
It’s important to know that very few coins can survive to the third wave in a bear market. We are doing mid-wave trading steadily, not gambling. So open your trading software now to check the coins you hold: if it has already passed the peak of the third wave, don’t hesitate, either sell directly or wait for a small rebound to quickly exit, don’t hold on with a wishful thinking mindset!
After all, surviving in a bear market is more important than anything else, minimizing losses is profit, and we shouldn't be greedy for that last coin.
