Using price and volume structure to judge the intentions of major players in the cryptocurrency market 📈
The core logic is simple: synchronized volume and price indicate a true trend, while divergence suggests hidden tricks; by combining price position, one can see whether the major players are accumulating, shaking out, ramping up, or distributing.
Accumulation phase: low volume sideways, occasionally increasing volume to test prices at low levels, trading volume remains persistently low, sometimes suddenly increasing volume for a quick rise and then rapidly falling back (testing selling pressure), K-lines are often small bearish and bullish candles with long lower shadows. Major player's intention: quietly collecting chips without attracting followers, so they try to keep trading volume low. Iron rule: the longer the low volume sideways at low levels, the greater the potential for subsequent upward movement.
Shakeout phase: decreasing volume with a price drop, increasing volume with price slightly rebounding, trading volume actually shrinks, and when it drops to key support levels, it will rebound with increased volume. K-lines often show bearish engulfing patterns with false breaks, scaring off retail investors. Major player's intention: cleansing indecisive holders to reduce burden for upward movement. Iron rule: decreasing volume during a pullback = major players haven’t fled, increasing volume during a rise = signal of the end of the shakeout.
Upward phase: synchronized volume and price, increased volume breaks through with rising prices, trading volume also expands, both rhythms are completely consistent, K-lines are often large bullish candles or three white soldiers, directly breaking through previous resistance levels. Major player's intention: quickly escaping the cost zone, attracting market followers to lift the price. Iron rule: synchronized volume and price during an upward movement is reliable; rising without volume is likely major players manipulating the market, ready to crash it at any time.
Distribution phase: increased volume stagnation, enormous volume and price reach high levels, trading volume explodes, but prices fail to rise or even slightly retreat, K-lines often show shooting stars or high-level doji stars. Major player's intention: distributing chips with high trading volume to realize profits. Iron rule: high-level increased volume stagnation = danger signal, especially after positive news followed by this trend, promptly reduce positions.
Finally, a reminder to avoid pitfalls: looking at volume and price alone is not enough; it's best to combine on-chain capital flow and market movements for cross-verification, along with stop-loss discipline to avoid being deceived by major players. @橙哥ETH #美SEC推动加密创新监管
