In digital asset technical analysis, the relationship between volume and price is always the core. Almost all analytical systems revolve around it, but the problem is that many methods only scratch the surface, focusing on patterns without understanding the essence.

Take trading volume as an example. Concepts like stacking volume, multiple volume, ladder volume... these are all descriptions of volume patterns, but they are of little real significance. Essentially, there are only four situations with trading volume: price rises with increased volume, price falls with increased volume, price rises with decreased volume, and price falls with decreased volume. It’s that simple.

Now, here’s the issue. Many people see volume-increasing price rises as a signal of main force building positions, which is a huge mistake. The real situation is that 95% of volume-increasing rallies actually indicate the end of a market phase, not the beginning. Most coins, when hitting new highs with increased volume, are actually being sold off by large holders, not bought. So you’ll find that after a volume-increasing high, the price often begins to decline.

Some analysts like to draw horizontal lines on multiple-volume K-line charts, treating them as support and resistance for subsequent movements. This approach is like carving a boat to seek a sword—completely useless. The influence of multiple-volume price zones on future market trends is actually minimal, and it offers limited help in understanding the intentions of the main force.

What is the true significance of volume-increasing rallies? It only indicates that large funds have entered the market. Whether the trend can continue depends on whether the main force continues to manipulate and control the market afterward. It’s not something that can be confirmed simply by drawing a few lines based on initial volume increases or multiple volume.

If you treat the main force’s active selling during volume-increases as the main focus of technical analysis or as an entry point, the success rate will inevitably be very low. Because this approach fundamentally lacks scientific logic.