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In the crypto world, always remember these laws and operate with caution.
Good use of these seemingly simple but extraordinary points can take you through the wind and waves.
💡 Law 1: rise faster than fall = Accumulation. If you find that the price of a coin is rising quickly 📈 but falling slowly, it is likely that the market maker is quietly accumulating chips, and the pump is not far away.
💡 Law 2: fall faster than rise = dump. Once there is a rapid fall📉 and a slow rise situation, be careful⚠, this indicates that the dealer is gradually dumping, and the market may soon enter a downward fall trend.
💡Law three: Don't panic when the trading volume peaks, but run quickly when there is no trading volume at the top. Don't panic when the trading volume increases at the high level, as it may continue to rise; but if the trading volume decreases at the high level, it's a signal of weak upward momentum, so leave quickly.
💡 Law four: Don't rush to buy when there is a large volume at the bottom, consider it again when the volume continues. Large volume at the bottom may be a downward correction, so observation comes first; only when there is continuous large volume, it indicates capital inflow, then you can try buy low.
💡 Law 5: Cryptocurrency speculation = speculating on emotions, and emotions determine consensus. Will market sentiment really drive coin price fluctuations, while trading volume is a direct reflection of consensus.
In short, I hope everyone can harvest a lot in the crypto world.