How to correctly distinguish the obvious difference between a reversal market and a rebound market when it occurs?

(1) Look at the decline in the price of the currency. If the decline in the price of the currency is not large, it may be a rebound; if the decline exceeds 50%, it is possible to fall back to the bottom.

(2) Look at the change in trading volume. A reversal market is usually accompanied by an increase in trading volume. This increase does not mean that the transaction amount of a few days has increased significantly, but requires that the transaction amount of several consecutive trading days must reach and stabilize above a certain level. Although general rebound markets have an increase in trading volume, it cannot last long. After three or four trading days, the volume will shrink.

(3) Look at the market trend of the currency price. Unless the decline cycle is very long and the decline is extremely large, the currency price forms a "V"-shaped reversal and the trend is particularly strong, the bottom can be established. Under normal circumstances, it takes a long time for the currency price to build a bottom, and the currency price may repeatedly test the bottom during this period. Therefore, it is unlikely that the currency price will bottom out at once.

(4) Look at the trend of the currency price rebound. If the price falls by more than 1/3, 1/2, or 2/3, and the volume is stagnant, or the trend is heavy and sluggish, and the trading volume shrinks, then the possibility of a rebound is high. If the price fluctuates at these positions but quickly breaks through the upward trend, it is a new round of rise.

Real-time operation

(1) Formulation and implementation of investment plan: The two currencies with the best growth in investment profit rate. The implementation method is: make the first purchase at the bottom area of ​​the currency, and then double the purchase every time it falls by a certain interval, hold it for the medium and long term, and only reduce the position when it is at an obvious top. When a better variety is found, a new variety can be added.

(2) Speculation of oversold individual coins: Compared with the same-priced coins, oversold individual coins have obvious performance advantages, but the price is relatively low. When there is continuous volume expansion, intervene in small amounts, only increase the position at a low level, exit with a profit of more than 20%, and appropriately sell high and buy low.

(3) Speculative altcoins: The price of such coins should be relatively low, with a circulation of less than 1 billion and decent performance prospects. They can be gradually absorbed when the market plummets or hits a mid-term bottom, held in the medium term and sold high and bought low, but the chips purchased at low prices should not be easily sold out.