This knowledge point has been tried and tested! Suitable for buying the dip during stages!


What kind of price-volume relationship during a pullback allows you to determine whether it is a good time to buy the dip just by looking at the trading volume?
Basic concept: An increase in trading volume usually indicates a growing divergence between bulls and bears, while a decrease in trading volume suggests a reduction in divergence, gradually moving towards unification.
So, a typical example derived from the above concept, when you observe:
1. The daily trading volume continues to decrease day by day (note that it must be continuous and decreasing), indicating that the divergence between the bulls and bears is gradually reducing and trending towards consensus.
2. On the last day, the trading volume dropped to a level similar to that before this wave started, indicating that the excess divergence has been digested and returning to the trading volume that should be at the starting point.
3. At the same time, the price of the coin shows a continuous downward trend, with daily fluctuations being arbitrary, but it must close with a daily decline. Combined with points 1 and 2, this indicates that everything that can be bought has been bought, and everything that can be sold has been sold, with all floating capital thoroughly cleared, and there will no longer be any trading activities that could cause significant changes (declines).
Find the callback period coins that satisfy the above three points simultaneously, close your eyes and wait for the rise.
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