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This knowledge point is tried and tested! Suitable for buying the dip in stages!


What kind of volume-price relationship during a pullback allows you to determine just by looking at the trading volume whether it is a good time to buy the dip?
Basic concept: An increase in trading volume usually indicates a greater divergence between the bulls and bears, while a decrease in trading volume suggests a reduction in divergence, gradually moving towards unity.
So, a typical example derived from the above concepts, when you observe:
1. The daily trading volume continues to decrease day by day (note that it must be continuous and decreasing), indicating that the divergence between bulls and bears is gradually reducing and tending towards一致.
2. On the last day, the trading volume dropped to a level similar to that before this wave started, indicating that excess divergences have been digested, returning to the trading volume that should be at the starting point.
3. At the same time, the price of the currency shows a continuous downward trend, with daily declines being arbitrary, but it must close with a decline every day. Combined with points 1 and 2, this indicates that everything that can be bought has been bought, and everything that can be sold has been sold, with floating chips completely cleared, and there will be no trading behavior that can cause significant changes (declines) to exist.
Find a callback period coin that satisfies the above three points at the same time, close your eyes and wait for the surge.
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