New Version, Worth Being Seen! #GateAPPRefreshExperience
🎁 Gate APP has been updated to the latest version v8.0.5. Share your authentic experience on Gate Square for a chance to win Gate-exclusive Christmas gift boxes and position experience vouchers.
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There is a friend from Chaoshan in my Moments who has been immersed in the crypto world for eight years. Starting with around 200,000 yuan, his account has grown to over 80 million, but his lifestyle has never changed—old house, small electric scooter, still bargaining at the vegetable market. He said something quite sobering: "No matter how crazy the numbers rise, they can't change the texture of daily life."
Having experienced these rounds of ups and downs with him, I realize that those who truly survive and make money never rely on the dream of getting rich overnight, but instead incorporate "anti-human nature" into their trading logic. They avoid rumors and new coin hot spots, sticking strictly to a few ironclad rules. Today, I’ll break down this "simple method" and talk about it.
**Absorbing and Distributing, Learning to Read the Market’s Breathing**
Rapid rise and slow correction? The main force is inhaling.
Price suddenly spikes, then slowly retraces, like taking a deep breath—this is usually not a top escape but building momentum. Many panic when they see a correction and hurriedly sell off, handing their chips to the patient. His approach is very straightforward: as long as the fundamentals are intact, buy gradually during dips, just like shopping at the market with a calm mind.
Weak rebound after a sharp decline? Exit immediately.
If the rebound after a plunge is listless, like a deflated balloon, it’s probably the big players offloading. At this point, the urge to buy the dip should be restrained because there might still be a bottom below. He often says: "Rather than chasing the perfect bottom, it’s better to avoid the fate of catching the falling knife."
**Volume is the true reflection of the market’s intentions; everything else is decoration**
High volume at a top ≠ necessarily a peak, but declining volume during a drop = warning sign.
Sometimes, high volume at a top indicates chip turnover, and the trend may continue; but shrinking volume during a decline is different, indicating no one is willing to buy in, which is a real warning light. He prefers to focus on weekly volume accumulation rather than being scared by single-day surges, which helps filter out a lot of noise.
Many people look at technical indicators like lipstick—pretty but unable to solve problems. What truly speaks are the volume data that don’t deceive. Learning to read volume is like equipping your trading with a radar.