$BTC Cryptocurrency Trend Judgment: 2 Core Principles, Say Goodbye to Blind Guessing
To judge trends, there's no need to struggle with complex indicators; focus on moving averages (direction indicators) + volume (engine), so that beginners can quickly get started, along with practical methods👇
1. Moving Averages: Look at Direction, Identify Strength and Weakness
Use MA5 (5 days), MA10 (10 days), MA30 (30 days) moving averages; by observing their arrangement, you can know the trend:
Uptrend: Short-term moving averages (MA5/10) are above long-term moving averages (MA30), overall diverging upwards, K lines predominantly above the moving averages, and pullbacks do not break through key moving averages; Downtrend: Short-term moving averages are pressed below long-term moving averages, continuously moving downwards, K lines rebound and meet resistance at moving averages; Sideways Trend: Moving averages are tangled together, K lines jump up and down; at this time, do not make hard judgments, wait for clear direction.
2. Volume: Verify Authenticity, Prevent Deception
Volume-price coordination is the true trend; looking at price alone can lead to pitfalls:
Uptrend Confirmation: Price rises while trading volume increases (capital entering) → True rise; Price rises with volume decreasing → False rise, prone to pullbacks; Downtrend Confirmation: Price falls while trading volume increases (capital escaping) → True fall; Price falls with volume decreasing → High probability of short-term pullback; Warning Signals: Price hits a new high but volume decreases, price hits a new low but volume decreases → High probability of trend reversal⚠️.
Key Iron Rules
Beginners should not make hard judgments during the tangled moving averages and chaotic volume of the sideways period! Wait for clear moving average direction + volume coordination, and confirm the direction with 2-3 K lines before taking action; it's 10 times more stable than blind guessing~@耐心哥带单 #美SEC推动加密创新监管
