From 190,000 to 20 million, I have gone through a complete cycle in the crypto circle using this method.

It's a bit heartbreaking to say, but the days 11 years ago when I was worried about rent in first-tier cities are now a distant memory. Looking back now, those losses from back then turned out to be the best tuition fees. No insider information, no gambling on the market, I just mastered the logic of trading volume.

**Shakeout vs. Top Formation, a Detail That Decides Life or Death**

The initial mistake I made: seeing a certain altcoin surge 20% suddenly start to slow down, I panicked. Result: I cleared all my positions, only to see it rise another 50% afterwards.

I later realized this was the market makers shaking out. What is the true sell signal? A sudden surge in volume followed by a sharp crash. I remember during that $ETC event, it shot up 30% in a day and then suddenly plummeted. A decisive decision helped me avoid the subsequent 40% crash.

**"Dead Silence" at High Levels is More Dangerous Than Volume**

Many people are afraid of seeing volume decline during a downturn. But my experience shows that a mild decrease in volume at high levels is more dangerous. Once, a mainstream coin's trading volume at the high was suddenly collapsing. I ignored it, and a week later, it was cut in half. I still remember the regret of losing 30,000 yuan.

Since then, I understood: if the high level is shaking with volume, there’s still a rebound opportunity; but that strange "quiet" condition is a signal that big funds are quietly withdrawing.

**The Appearance of a True Bottom is Very Specific**

Trying to catch the bottom once got me trapped for half a year. After a coin dropped 25% and then rebounded 10%, I heavily bought in, only to be caught deeper.

The turning point came from an observation: a rapid decline + a slow rebound is a trap. What does a real bottom look like? Several days of consolidation with shrinking volume, followed by three consecutive days of moderate increasing volume on bullish candles—that’s the signal that the market maker is building a position. Bitcoin last year followed this pattern; I entered the market and earned three times in half a year.

**Trading Volume Is the Only Truth**

Candlestick charts are just appearances; data can deceive. But trading volume reflects true participation. Essentially, trading crypto is a game of emotions and consensus, and volume is the most direct reflection of this game.

My trading principle is simple: don’t chase highs, don’t fear dips, don’t blindly buy, don’t hold empty positions, don’t hold full positions. This rhythm allows me to seize certain opportunities while protecting principal.

In markets with wild rises and falls, some panic and make mistakes, while others profit steadily. The difference lies in these four iron laws.