Eight Years in the Crypto World: The Discipline Rules Taught by Trading Volume
Hello everyone, I am a senior trader at Binance Square. After eight years of real trading experience, I know that the crypto world is like a battlefield, where success lies in discipline rather than luck. Newbies often ask: How to avoid traps? The answer is hidden in trading volume; it is the true heartbeat of the market.
1. Price skyrockets but there is no accompanying volume? That is a false breakout; patiently wait for a volume contraction pullback, and do not chase the rise.
2. After a spike, a slow pullback with obvious signs of accumulation; but after a volume increase, a large bearish candle often entices shorts to switch positions, and going against the trend can lead to being trapped.
3. Flash crashes followed by rises, do not try to catch the bottom on low-volume rebounds; the selling by the main force is disguised, it’s better to miss out than to make a mistake.
4. Rising with decreasing volume, a quiet signal suggests a turning point; only a volume increase in rising markets is fervent, and holding positions requires caution.
5. A single explosive volume at the bottom is not a true bottom; reversal confirmation relies on subsequent consolidation, hasty entries can lead to becoming cannon fodder.
6. Always keep a close eye on volume-price coordination, combined with candlestick patterns, to avoid being led by emotions.
7. Daily review logs, record every gain and loss; discipline builds long-term winning.
These rules help me maintain my footing, but the market is unpredictable, and risks are self-borne.
This article represents personal opinions only and does not constitute any investment advice. DYOR.