Volume-Price Trading Method Notes - Understanding the Real Language of the Market
💪In cryptocurrency trading, the relationship between price and trading volume reveals the true comparison of buying and selling power in the market:
-Price rises and volume increases: indicates strong bullish sentiment, look for long opportunities. - Price increase and volume decrease: it indicates that momentum is weakening, and one should prepare to exit long positions. - Price drop with increased volume: indicates a bearish dominance, short selling may be considered. - Price drop and volume decrease: This means selling pressure has weakened, and it is necessary to close short positions in a timely manner.
💡Key Takeaway: - A true trend requires volume confirmation. When a volume-price divergence signal appears, prioritize closing positions. -Remember, follow up when there is a combination of volume and price, be cautious when there is a divergence between volume and price, and combined with key support and resistance levels, this will significantly improve the trading win rate.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
5 Likes
Reward
5
1
Repost
Share
Comment
0/400
ShiFangXiCai7268
· 06-08 06:47
- A true trend requires confirmation from Trading Volume. When a volume-price divergence signal appears, prioritize closing positions. - Remember, follow up when there is a volume-price alignment, be cautious during a volume-price divergence, and combine this with key support and resistance levels to significantly improve your trading win rate.
Volume-Price Trading Method Notes - Understanding the Real Language of the Market
💪In cryptocurrency trading, the relationship between price and trading volume reveals the true comparison of buying and selling power in the market:
-Price rises and volume increases: indicates strong bullish sentiment, look for long opportunities.
- Price increase and volume decrease: it indicates that momentum is weakening, and one should prepare to exit long positions.
- Price drop with increased volume: indicates a bearish dominance, short selling may be considered.
- Price drop and volume decrease: This means selling pressure has weakened, and it is necessary to close short positions in a timely manner.
💡Key Takeaway:
- A true trend requires volume confirmation. When a volume-price divergence signal appears, prioritize closing positions.
-Remember, follow up when there is a combination of volume and price, be cautious when there is a divergence between volume and price, and combined with key support and resistance levels, this will significantly improve the trading win rate.
- Remember, follow up when there is a volume-price alignment, be cautious during a volume-price divergence, and combine this with key support and resistance levels to significantly improve your trading win rate.