"Precise Bottom-fishing Secrets: Finding the Perfect Volume-Price Relationship in the Retracement Period"
This knowledge point is very effective! Very suitable for staged bottom-fishing.
In a market in the callback period, what kind of volume-price relationship can allow us to accurately judge whether it is the best time to buy the bottom by trading volume alone?
The basic concept is: the increase in trading volume often means that the differences between the long and short sides are intensifying, and conversely, the decrease in trading volume indicates that the differences between the long and short sides are weakening and gradually tending to unify.
From this concept, a typical situation is derived: when we observe the following three points.
First, the daily trading volume is continuous and decreasing day by day (the two conditions of continuity and decreasing must be met at the same time), which means that the differences between the long and short sides are decreasing day by day and gradually tending to be consistent.
Second, the trading volume on the last day is reduced to a level close to the trading volume before this wave of launch, which means that the excess differences have been digested and returned to the trading volume level that should have been at the start point.
Third, at the same time, the currency price shows a continuous downward trend, and the daily decline is not limited, but it must close with a decline every day. Combined with the previous two points, this shows that all that can be bought has been bought, and all that should be sold has been sold. The floating chips have been completely cleared, and there will be no more transactions that can cause major variables (declines).
Once you find a currency that meets the above three points and is in a callback period, you can buy it with confidence and wait for the price to rise.