Let you quickly understand what "fast drop and slow rise", "fast rise and slow drop", "large volume rise", "large volume fall", "shrinking volume rise" are.
1. Fast drop and slow rise is to absorb funds:
Imagine that you are waiting to buy discounted goods in the market. The price suddenly drops sharply (fast drop), but then slowly rises (slow rise). At this time, the main buyers in the market are quietly hoarding a large number of goods. You have to quietly buy at this stage, but this is not the time for the price to rise sharply. You will still encounter some price fluctuations, just like you have to be careful when choosing goods and master the rhythm of buying low and selling high.
2. Fast rise and slow fall is to sell goods:
This is like a person quickly raising the price of the auction item to attract everyone to bid (fast rise), and then the price begins to slowly fall (slowly fall). At this time, the auctioneer has successfully sold the goods at a high price, and the bidders who do not know the truth still think that the price will continue to rise. In fact, the auction is nearing the end at this time.
3. A large-volume rise will inevitably fall back:
Imagine a balloon. When you blow a lot of air into it (large-volume rise), the balloon will expand rapidly, but as you blow more, the pressure inside the balloon also increases (consuming power), and finally the balloon will either burst or you will have to let some air out (fall back). This means that there will naturally be a pullback after overblowing.
4. A large-volume fall will inevitably rebound:
It's like seeing a ball being thrown to the ground with force (large-volume fall), and as the force is released, the ball will bounce back on the ground. Although it looks dangerous when the ball lands, if you reach out to catch it too early, you may be hit in mid-air. It's best to wait for it to rebound at the right time before catching it.
5. A small-volume rise continues to rise:
It's like everyone in the elevator wants to go to a higher floor (optimistic about the future market), but no one wants to get off halfway (unwilling to sell). At this time, the elevator is rising steadily, showing that this is still a trend that continues to rise. If you choose to get off halfway (sell), you may miss the opportunity to reach a higher floor.