Understand Price Divergence in 1 Minute: The Manipulator's Tactics Are Obvious

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Abstract generation in progress

The price movement of cryptoassets can sometimes deviate from volume and price. This is called “volume-price divergence.”

Profits are determined by two patterns:

High Volume at Price (Sell Signal) The price is going up, but the selling volume is surging. This means the orchestrators are fleeing. There is a high possibility of a sharp decline from here. It's time to sell.

Low volume release (buy signal) Despite the price dropping, the buying volume is skyrocketing. The orchestrators are making their final moves in the bottom price range. There is a high likelihood of a rebound from here. It's a good time to buy.

Practical Reading:

  • When the amount increases and the price drops = Large investors are taking it away from general investors who bought at high prices.
  • When the supply decreases, the price increases = Main players are monopolizing the physical assets and restricting liquidity.

When looking at charts, don't just focus on the candlesticks; also take a look at the volume bars below. You can see the intentions of the players clearly.

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