Having navigated the digital asset market for 7 years, from an initial account of 50,000 yuan to 7 million, the greatest takeaway isn't the thrill of getting rich quickly, but the trading rules summarized through blood, sweat, and tears. Instead of working in isolation, it's better to share these patterns directly.

**A rapid surge followed by a slow pullback is definitely not a reversal signal**

After the price spikes, it begins to slide sluggishly downward. Many people panic, thinking the trend is reversing. Actually, this is a typical sign of a market maker's shakeout—designed to break your psychological defenses and trick you out of your chips. What does real danger look like? A 40% surge followed by a sharp cut within 3 hours—that's a classic trap to lure in chasing retail investors and harvest their positions.

**Don't rush to buy the dip during a decline rebound**

When encountering a waterfall-like sell-off followed by a small rebound, many can't resist jumping in to buy the dip. Stop. That’s just a smoke screen created by the market maker during distribution. Don't be fooled by naive ideas like "it’s time to rise after enough drops." Fake rebounds often trap those who think they’re clever enough to buy the bottom.

**High volume at the top is a sign of life; no volume at high levels means you should exit**

When the price reaches a top and trading volume continues to increase, it indicates that the upward momentum is still alive, and profit potential remains. But if the price hits a high and volume suddenly shrinks to dead water, you must decisively exit—no new funds are entering, and a collapse is just a matter of time. Conversely, a bottom with decreasing volume and sideways movement is a true sign of a bottom.

**Don’t get excited by massive volume at the bottom**

When a heavily fallen coin suddenly surges with enormous volume, it can be exciting, but it might just be a fake move by the market maker. The key is to watch for "sustained volume"—if after half a year of shrinking volume sideways, there’s continuous volume increase over several weeks, that’s a real signal of the market maker building a position.

**Volume is the ultimate truth detector; price is just a mirror**

Don’t think that understanding candlestick patterns alone guarantees victory. The essence of trading is insight into human psychology. Volume is the most direct reflection of market sentiment; price movements are just the emotional expression. Before PEPE’s 2025 rally, on-chain trading volume surged over 200% for 7 consecutive days—volume moves first, then prices go wild.

Mastering these 5 rules, understanding just one can save you many detours; mastering three can leave 90% of retail traders behind. To avoid being exploited by the big players and to seize opportunities at critical moments, the key is to learn to identify these signals early. Keep a close eye on daily volume and price changes, anticipate the actions of the main players, and you can stay undefeated in the crypto game.