Rising fiercely, falling gently? The big players are building positions. Pushing up then slowly dropping — this is called shaking out, don’t get shaken out. What does a real top look like? Suddenly increasing volume with a sharp rise, then a bang — a waterfall decline, the place retail investors get caught.
Conversely, falling quickly and rising slowly? The main force is quietly exiting. After a flash crash, a slow rebound — don’t think you’re grabbing cheap deals, it’s likely the last trap. That mindset of "it’s already fallen so much, where else can it go" is the easiest way to get caught.
**Volume is the true signal**
High volume at high levels might still push for another wave. But if volume suddenly disappears at high levels, and everything becomes eerily quiet — that’s when the decline is really about to happen.
Bottom formations are also a trick. A single spike in volume could just be a bait to lure in buyers. Look for several consecutive days of gentle volume increase — that’s when the main force is truly building positions.
In simple terms, candlesticks show the result, but trading volume reflects market sentiment. Shrinking volume indicates no one is playing anymore; sudden explosive volume means real funds are flowing in.
**And the last and most difficult point**
The courage to hold no position. Rest when needed, act decisively when it’s time, avoid greed and panic. This isn’t about lying flat; it’s about mastering your mindset.
Opportunities in the crypto market rotate, but what’s truly scarce is the ability to control your hands and see the situation clearly. Don’t always think you’re falling behind — in reality, you’re just stumbling in the dark. Learning to wait is already winning most of the battle.
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**How to Read Market Sentiment?**
Rising fiercely, falling gently? The big players are building positions. Pushing up then slowly dropping — this is called shaking out, don’t get shaken out. What does a real top look like? Suddenly increasing volume with a sharp rise, then a bang — a waterfall decline, the place retail investors get caught.
Conversely, falling quickly and rising slowly? The main force is quietly exiting. After a flash crash, a slow rebound — don’t think you’re grabbing cheap deals, it’s likely the last trap. That mindset of "it’s already fallen so much, where else can it go" is the easiest way to get caught.
**Volume is the true signal**
High volume at high levels might still push for another wave. But if volume suddenly disappears at high levels, and everything becomes eerily quiet — that’s when the decline is really about to happen.
Bottom formations are also a trick. A single spike in volume could just be a bait to lure in buyers. Look for several consecutive days of gentle volume increase — that’s when the main force is truly building positions.
In simple terms, candlesticks show the result, but trading volume reflects market sentiment. Shrinking volume indicates no one is playing anymore; sudden explosive volume means real funds are flowing in.
**And the last and most difficult point**
The courage to hold no position. Rest when needed, act decisively when it’s time, avoid greed and panic. This isn’t about lying flat; it’s about mastering your mindset.
Opportunities in the crypto market rotate, but what’s truly scarce is the ability to control your hands and see the situation clearly. Don’t always think you’re falling behind — in reality, you’re just stumbling in the dark. Learning to wait is already winning most of the battle.