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