After years of observation in the Crypto Assets market, I have summarized several core patterns for interpreting market trends that even Newbies can quickly understand. In this fast-changing market, the ability to identify key operational signals is often the decisive factor for making profits. Below, I will share four basic market patterns to help you better understand market movements.
Firstly, when a certain crypto asset shows a "rapid rise + slow decline" trend, it usually indicates that funds are strategically positioning themselves. They attract attention through short-term surges, and then accumulate chips during the slow pullback process. If the trading volume significantly increases at this time, it is worth paying close attention to the subsequent developments.
Secondly, the pattern of "rapid decline + slow recovery" needs to be watched. When prices experience a sharp drop followed by a slow rebound, it is likely a sign of capital exiting. This strategy often leverages panic emotions to prompt retail investors to sell off, and then slowly re-accumulate positions. In such cases, it is advisable to set profit-taking or stop-loss points in a timely manner to reduce risk exposure.
Third, the top trading volume contains important information. An unusually large trading volume at price peaks indicates fierce competition between buyers and sellers. Even if there may be another uptrend in the short term, the risk is quite high, making it suitable to gradually reduce holdings. Conversely, when the top trading volume suddenly shrinks, it signifies insufficient upward momentum; at this point, one should consider exiting in a timely manner to avoid being trapped at high levels.
Finally, the changes in trading volume also reflect market sentiment, which is equally worth paying attention to: when trading volume and price rise simultaneously, it indicates positive market sentiment, with the bulls in control; a decline in trading volume alongside a price drop indicates weak market sentiment and a strong wait-and-see attitude; and when there is a divergence between trading volume and price trends, one should be cautious of a potential trend reversal in the market and adjust investment strategies in a timely manner.
Understanding these basic forms can help investors better seize investment opportunities and avoid risks in the complex and ever-changing crypto assets market.
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GateUser-c071cb0b
· 06-16 19:03
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After years of observation in the Crypto Assets market, I have summarized several core patterns for interpreting market trends that even Newbies can quickly understand. In this fast-changing market, the ability to identify key operational signals is often the decisive factor for making profits. Below, I will share four basic market patterns to help you better understand market movements.
Firstly, when a certain crypto asset shows a "rapid rise + slow decline" trend, it usually indicates that funds are strategically positioning themselves. They attract attention through short-term surges, and then accumulate chips during the slow pullback process. If the trading volume significantly increases at this time, it is worth paying close attention to the subsequent developments.
Secondly, the pattern of "rapid decline + slow recovery" needs to be watched. When prices experience a sharp drop followed by a slow rebound, it is likely a sign of capital exiting. This strategy often leverages panic emotions to prompt retail investors to sell off, and then slowly re-accumulate positions. In such cases, it is advisable to set profit-taking or stop-loss points in a timely manner to reduce risk exposure.
Third, the top trading volume contains important information. An unusually large trading volume at price peaks indicates fierce competition between buyers and sellers. Even if there may be another uptrend in the short term, the risk is quite high, making it suitable to gradually reduce holdings. Conversely, when the top trading volume suddenly shrinks, it signifies insufficient upward momentum; at this point, one should consider exiting in a timely manner to avoid being trapped at high levels.
Finally, the changes in trading volume also reflect market sentiment, which is equally worth paying attention to: when trading volume and price rise simultaneously, it indicates positive market sentiment, with the bulls in control; a decline in trading volume alongside a price drop indicates weak market sentiment and a strong wait-and-see attitude; and when there is a divergence between trading volume and price trends, one should be cautious of a potential trend reversal in the market and adjust investment strategies in a timely manner.
Understanding these basic forms can help investors better seize investment opportunities and avoid risks in the complex and ever-changing crypto assets market.