After years of navigating the crypto world, you'll gradually realize a truth — candlestick charts are just a facade; the real story is written in the trading volume.
Too many people focus on the fluctuating prices for entertainment, and the big players love you to do so. But once you learn to read volume, those seemingly tempting "traps" won't catch you at all.
Here are the three most practical lessons, each learned through real experience and solid lessons.
**First Trap: The harder the drop, the larger the volume. Don't rush to buy the dip.** When a coin drops and beginners want to scoop up the bargain, that's the classic way to lose money. Price drops + huge volume? That's basically the main players dumping and escaping. The real bottom-buying point isn't like that — it should be when the price falls to a point where no one cares, no one complains, and no one dares to move, with volume shrinking dramatically. That’s a sign that the shakeout is complete.
**Second Signal: Sideways consolidation with decreasing volume indicates someone is secretly accumulating.** Consolidation itself isn't scary, but what's frightening is when volume still increases every day during sideways movement. If the price isn't moving up or down and volume remains quiet, it means retail investors have lost patience, and the chips are slowly being accumulated. When you sell, the market often takes off from this point.
**Third Trap: Chasing a breakout with volume, only to be reversed nine out of ten times.** A single spike in volume breaking through resistance often leads to being wiped out. True breakouts will have a second confirmation. No follow-through volume? That’s just a show for the retail investors.
**Remember this: Price tricks retail investors, but trading volume is the language of the big players.** Only watching the numbers move means you'll always be half a beat behind the market.
Those who can truly profit from the market are never just lucky — they understand what’s happening. Opportunities are right there, but only those who do their homework will be favored.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
8 Likes
Reward
8
5
Repost
Share
Comment
0/400
LongTermDreamer
· 12-16 16:10
Oh wow, three years ago I was also caught like that. Now I finally understand that volume is the real truth.
View OriginalReply0
CryptoTarotReader
· 12-16 16:07
It's the same old story, the volume mind-reading trick, how many times have I heard it haha
View OriginalReply0
TheMemefather
· 12-16 16:02
Ah, it's the same old story. I'm tired of the volume talk. The key is execution, my friend.
View OriginalReply0
GasFeeCryBaby
· 12-16 15:56
Bro, I've heard this theory so many times. It's true, but how many people can actually stick to not buying the dip?
View OriginalReply0
DefiPlaybook
· 12-16 15:56
Trading volume, this explanation is spot on. On-chain data doesn't lie. The problem is most people simply can't understand it.
It's another story of getting wrecked, this time it's the SEC coming to regulate? Haha, just wait and see.
I've experienced the phase of volume shrinking and shaking out traders. Honestly, I couldn't resist buying the dip at that time, and then there was nothing afterward.
To be honest, understanding trading volume is much more reliable than reading some research reports. Unfortunately, few people study it seriously.
I now pay close attention to the signals of sideways consolidation with decreasing volume. I've learned my lesson and become smarter.
Those who follow the breakout without secondary confirmation are basically just feeding the fish.
The phrase "Price tricks retail investors" hits home. I get caught every time.
Doing thorough homework is the most important, but most people are just after quick money haha.
Trading volume is the real truth; candlestick charts just tell stories.
This interpretation is quite clear-headed, much better than those bloggers who shout about daily rises and falls.
Volume is the ticket; without it, you have to get off the train wherever you are.
After years of navigating the crypto world, you'll gradually realize a truth — candlestick charts are just a facade; the real story is written in the trading volume.
Too many people focus on the fluctuating prices for entertainment, and the big players love you to do so. But once you learn to read volume, those seemingly tempting "traps" won't catch you at all.
Here are the three most practical lessons, each learned through real experience and solid lessons.
**First Trap: The harder the drop, the larger the volume. Don't rush to buy the dip.**
When a coin drops and beginners want to scoop up the bargain, that's the classic way to lose money. Price drops + huge volume? That's basically the main players dumping and escaping. The real bottom-buying point isn't like that — it should be when the price falls to a point where no one cares, no one complains, and no one dares to move, with volume shrinking dramatically. That’s a sign that the shakeout is complete.
**Second Signal: Sideways consolidation with decreasing volume indicates someone is secretly accumulating.**
Consolidation itself isn't scary, but what's frightening is when volume still increases every day during sideways movement. If the price isn't moving up or down and volume remains quiet, it means retail investors have lost patience, and the chips are slowly being accumulated. When you sell, the market often takes off from this point.
**Third Trap: Chasing a breakout with volume, only to be reversed nine out of ten times.**
A single spike in volume breaking through resistance often leads to being wiped out. True breakouts will have a second confirmation. No follow-through volume? That’s just a show for the retail investors.
**Remember this: Price tricks retail investors, but trading volume is the language of the big players.**
Only watching the numbers move means you'll always be half a beat behind the market.
Those who can truly profit from the market are never just lucky — they understand what’s happening. Opportunities are right there, but only those who do their homework will be favored.