A large increase in volume at the bottom, what is the most likely trend in the future?
First and foremost, it must be clear that: increased volume indicates intensified buying and selling disagreements. When disagreements intensify, the signal for a trend reversal strengthens, and the two are positively correlated. When the coin price is at a relative or absolute bottom, a sudden surge in volume usually means that the bulls are rapidly gaining strength, ending the consolidation trend and becoming a key factor in driving the price upward. So why can't a sudden increase in volume be selling volume? Because there’s no reason for it. Bottom selling volume, apart from sudden negative news, can only be manipulated by the market maker. If the price is already very low, the market maker wouldn’t absorb cheap chips and then release a bunch of cheap chips. What’s his purpose? Why would he go against the trend? In summary, a large increase in volume at the bottom indicates a high probability of continued upward movement in the future. #我在Gate广场过新年
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GateUser-19134c7a
· 8h ago
Wishing you great wealth in the Year of the Horse 🐴
A large increase in volume at the bottom, what is the most likely trend in the future?
First and foremost, it must be clear that: increased volume indicates intensified buying and selling disagreements. When disagreements intensify, the signal for a trend reversal strengthens, and the two are positively correlated.
When the coin price is at a relative or absolute bottom, a sudden surge in volume usually means that the bulls are rapidly gaining strength, ending the consolidation trend and becoming a key factor in driving the price upward.
So why can't a sudden increase in volume be selling volume? Because there’s no reason for it.
Bottom selling volume, apart from sudden negative news, can only be manipulated by the market maker. If the price is already very low, the market maker wouldn’t absorb cheap chips and then release a bunch of cheap chips. What’s his purpose? Why would he go against the trend?
In summary, a large increase in volume at the bottom indicates a high probability of continued upward movement in the future. #我在Gate广场过新年