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After years of navigating the crypto world, I increasingly believe one principle — those who truly make money are never the ones chasing the latest trends, but rather traders who can calmly understand market laws.
Especially after the release of important economic data like US Non-Farm Payrolls, market volatility tends to be very high, making it easier to see who truly understands trading logic. I’ve summarized a trading framework that I’ve personally validated, and I’d like to share it with you.
The most core point is to seize genuine buying and selling opportunities. Consolidation and pullbacks are the right entry points; avoid chasing vertical surges. Many people see prices rising and want to buy in, but often end up holding at high levels. Keep your rhythm steady — these four words are simple but crucial.
Next, it’s important to understand the shift in market sentiment. When the market is roaring, stay alert, because that’s often a selling signal. Truly calm traders tend to reduce their positions when the market is most lively. Looking at candlestick patterns, a series of small positive candles indicates steady upward movement, but a big bullish candle rushing higher repeatedly should raise caution — it’s likely the last wave before a top.
After a sharp rise, a pullback is inevitable — this is a market regularity. The key is to judge the depth of the pullback. If no deep correction has been made, don’t rush to add positions; wait until support levels are confirmed before building a position for safety. Similarly, the acceleration during the main upward phase is often the final push, which is when the risk is greatest. Comparing the two, a sharp decline can scare people out, but what you really need to watch for is volume-increasing slow declines — this indicates someone is systematically unloading.
Volume-price relationship is the core of the entire system. If the price advances without volume, the main force is trying to lure more buyers — don’t foolishly stand your ground. Shrinking volume at new lows usually signals a bottom, but real opportunities appear when volume picks up again. A volume-less rapid decline is often just scare tactics; only a volume-supported slow decline warrants genuine retreat.
When breaking the critical support line, don’t hesitate — swing trading can be safer. Also, pay attention to daily and monthly charts; building positions in line with the trend is always smarter than fighting against it. Longer cycles help you see the true trend clearly, so don’t just focus on short-term candlesticks.
This logical framework may seem simple, but it stands the test of time. Practice more, review more, and you’ll make fewer detours. During volatile periods after important data releases like Non-Farm Payrolls, applying these principles to guide your trades can often help you confidently capture the market that belongs to you.