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In the early stages of exploring the Crypto Assets market, many Newbies encounter various trading formulas. Although these formulas mostly stay at the technical level, they do provide valuable references for establishing a personal trading system. This article will delve into the nine major trading rules, discussing the logic and applications behind them.
First, 'Buy when the market is stable and at low points, and sell when the market is active.' This rule reminds investors to focus on coins that are consolidating sideways and at low levels, rather than chasing targets that have already risen significantly. At the same time, look for selling opportunities when market sentiment is high.
Secondly, 'a continuous slight increase may be a trend, and a continuous surge should consider exiting the market.' This indicates that a stable slight increase may suggest a healthy upward trend, while drastic price fluctuations may imply an increased risk.
Third, 'High position pullbacks provide buying opportunities, be cautious in building positions before deep adjustments.' This rule emphasizes looking for entry opportunities during price pullbacks but also warns to stay alert in case of potential deep adjustments.
In addition, 'the main rising phase acceleration may be approaching the top, with sharp declines leading to urgent selling and slow declines leading to gradual selling'. This reminds investors to pay attention to risks during accelerated rises, while adjusting their selling strategies based on the speed of declines.
'A rapid decline with low trading volume may be a trap, while a slow decline with increasing volume requires timely withdrawal.' This rule emphasizes that observing the relationship between price movements and trading volume is crucial for determining market trends.
'Breaking key support levels suggests considering swing trading' emphasizes the importance of technical analysis and recommends taking appropriate actions when prices break important levels.
'Pay attention to the daily and monthly charts, grasp the major trends' reminds investors not to ignore the longer-term charts and to establish positions in line with the main trends.
"The lack of trading volume support for the rise may be a trap for the bullish" warns investors to be cautious of price increases without trading volume support.
Finally, 'a reduction in volume and a new low may indicate a bottom, and a rebound in volume should be considered for entry' suggests that changes in trading volume and price may indicate a market turning point.
These trading rules provide valuable market insights for investors, but it is important to note that they are not absolute truths. Successful trading strategies also require a combination of market research, risk management, and continuous learning. In the fast-changing Crypto Assets market, it is especially important to remain calm and rational.