1. Rapid rise and slow decline indicate the main force is accumulating After a sharp increase, the correction is gentle. Don't rush to sell; it often means funds are quietly entering. 2. Rapid decline and weak rebound indicate the main force is distributing After a flash crash, it can't be pushed back up. Don't expect to catch the bottom; entering means taking the risk. 3. High volume at a top doesn't necessarily mean a peak Sometimes volume at the top is a sprint; only when volume shrinks at a high level should you be truly cautious. 4. Single large volume at the bottom is unreliable One-time volume spike may be a false signal; continuous volume increases are the real bottom. 5. Trading cryptocurrencies is about human psychology Volume is the most direct reflection of emotions. Understanding it is ten times more effective than blindly following indicators. 6. "Nothingness" is the highest realm No desire, no fear, no attachment. Only by holding a vacant position can you seize great opportunities.
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Six simple principles:
1. Rapid rise and slow decline indicate the main force is accumulating
After a sharp increase, the correction is gentle. Don't rush to sell; it often means funds are quietly entering.
2. Rapid decline and weak rebound indicate the main force is distributing
After a flash crash, it can't be pushed back up. Don't expect to catch the bottom; entering means taking the risk.
3. High volume at a top doesn't necessarily mean a peak
Sometimes volume at the top is a sprint; only when volume shrinks at a high level should you be truly cautious.
4. Single large volume at the bottom is unreliable
One-time volume spike may be a false signal; continuous volume increases are the real bottom.
5. Trading cryptocurrencies is about human psychology
Volume is the most direct reflection of emotions. Understanding it is ten times more effective than blindly following indicators.
6. "Nothingness" is the highest realm
No desire, no fear, no attachment. Only by holding a vacant position can you seize great opportunities.