Rise is bullish, fall is bearish, does that mean it's just a weather vane?
Many people feel that "falling means bearish, rising means bullish" is a very conformist idea, as if there is no independent judgment, and it even has a bit of a "retail investor mentality" flavor. But if you have really traded, you will find that this is actually a very practical and valuable principle. Many operational ideas in the market are based on this "following the trend" principle. Here's a simple example: Would you buy a coin that is constantly falling and you don't know where the bottom is? Most people wouldn't, because it's clearly in a bearish trend, and there are no signs of a bottom yet. As the saying goes, "A gentleman does not stand under a dangerous wall," which is the point. But once it falls to a certain position, if there is a rebound for several consecutive days, and both the trading volume and pattern start to show signs of improvement, wouldn't you think: maybe there is a short-term opportunity? This is the practical application of "bullish after a rise." Contracts are the same. A cryptocurrency may have a good trend, and you judge that it can continue to rise, but suddenly there is a strong fall that breaks the original upward structure. At this point, you need to reassess whether it has peaked in the short term. Should you wait for a rebound to go short? If you stubbornly stick to the original "bullish" view, you might end up losing. The same is true in reverse. In a market that has been continuously falling, a sudden strong rally breaks the original downward trend. At this point, one must also consider: Has the bottom been reached? Should I look for opportunities to go long? Therefore, "falling means bearish, rising means bullish" is not about blindly following trends, but rather an ability to adapt to market changes and dynamically adjust judgments. Being able to apply this flexibly is what makes a truly mature trader. #BTC #ETH #SOL #PEPE #PI
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Rise is bullish, fall is bearish, does that mean it's just a weather vane?
Many people feel that "falling means bearish, rising means bullish" is a very conformist idea, as if there is no independent judgment, and it even has a bit of a "retail investor mentality" flavor.
But if you have really traded, you will find that this is actually a very practical and valuable principle. Many operational ideas in the market are based on this "following the trend" principle.
Here's a simple example: Would you buy a coin that is constantly falling and you don't know where the bottom is? Most people wouldn't, because it's clearly in a bearish trend, and there are no signs of a bottom yet. As the saying goes, "A gentleman does not stand under a dangerous wall," which is the point.
But once it falls to a certain position, if there is a rebound for several consecutive days, and both the trading volume and pattern start to show signs of improvement, wouldn't you think: maybe there is a short-term opportunity? This is the practical application of "bullish after a rise."
Contracts are the same. A cryptocurrency may have a good trend, and you judge that it can continue to rise, but suddenly there is a strong fall that breaks the original upward structure. At this point, you need to reassess whether it has peaked in the short term. Should you wait for a rebound to go short? If you stubbornly stick to the original "bullish" view, you might end up losing.
The same is true in reverse. In a market that has been continuously falling, a sudden strong rally breaks the original downward trend. At this point, one must also consider: Has the bottom been reached? Should I look for opportunities to go long?
Therefore, "falling means bearish, rising means bullish" is not about blindly following trends, but rather an ability to adapt to market changes and dynamically adjust judgments. Being able to apply this flexibly is what makes a truly mature trader.
#BTC #ETH #SOL #PEPE #PI