This knowledge point has proven to be consistently effective! Suitable for phased bottom-fishing!


Which type of volume-price relationship during a pullback allows you to determine whether it's a good time to buy the dip just by looking at trading volume?
Basic concept: An increase in trading volume usually indicates growing disagreement between bulls and bears. Conversely, a decrease in volume suggests that the disagreement is diminishing and gradually becoming unified.
Based on this concept, a typical example is when you observe:
1. Daily trading volume decreasing consecutively (note: it must be consecutive and decreasing), indicating that the disagreement between bulls and bears is decreasing daily and gradually becoming consistent.
2. The trading volume on the last day drops to approximately the same level as before this wave started, indicating that the excess disagreement has been digested and the trading volume has returned to the original starting point.
3. At the same time, the coin price shows a continuous downward trend, with daily declines of any size, but must close lower each day. Combining points 1 and 2, it indicates that all the buy orders have been filled, all the sell orders have been executed, and the floating supply has been thoroughly cleared. There will no longer be trading behaviors that could cause major fluctuations (further declines).
Find coins during the pullback that simultaneously meet these three points, and sit back with your eyes closed, waiting for the rally. #我在Gate广场过新年
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FAxiangvip
· 6h ago
When is the best time to buy the dip?
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FAxiangvip
· 6h ago
Happy New Year, Teacher 🧨
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