After spending a long time in the cryptocurrency circle, you will understand that candlestick charts are just the surface; the real value lies in trading volume.
Too many people focus on price, but what makes the traders happiest is that you don't pay attention to the volume. Once you understand the volume, you won't fall into many "pits".
I will share 3 of the most practical tips, all learned through experience.
1. When there is a significant drop in volume, don't try to catch the falling knife; that is selling pressure.
When the price drops, many think they can buy cheap, which is the most common mistake for newcomers. If the price drops with huge volume, it basically means the big players are dumping their positions. The real buying opportunity is when the price drops, and the volume decreases; when there is no noise, no one is shouting, and no one dares to touch it, that is the bottom after the washout.
2. When the volume decreases and the price moves sideways, it indicates a big move is brewing.
Sideways movement is not a concern; the worry is if it continues sideways with increasing volume. Low volume during sideways movement indicates that retail investors are losing patience, and the chips are slowly being collected. Often, when you decide to sell, the market is just beginning.
3. When there is a breakout with increased volume, hold off on rushing in.
Chasing after one breakout with increased volume usually results in nine out of ten being countered. A true breakout will definitely have a second candlestick follow-up; any volume that does not continue is just a show for you.
One piece of advice: prices deceive retail investors, while volume is for the big players. If you only watch prices, you will always be one step behind the market.
Today, those who profited in the market were not just lucky; they understood what was happening. Opportunities arise every day, but they are only available to those who can see clearly.
Pay attention to: PTB AVAAI BAS TRUTH FHE
