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What does blockchain band mean?

王林
王林Original
2024-07-30 16:02:01810browse

The blockchain band is a cyclical fluctuation pattern, including four stages: rising (highs and highs and lows continue to rise), callback (falling back but not falling below the rising trend line), falling (lows and lows continuing to rise) down) and recovery (rebound but not above the downtrend line). Understanding swing patterns helps traders identify trends, develop strategies, and manage risk.

What does blockchain band mean?

Blockchain band

Blockchain band refers to the cyclical fluctuation pattern presented in the price trend of blockchain assets. It describes a sustained upward or downward trend in prices over a period of time, followed by a tendency to move in the opposite direction.

Blockchain bands are generally divided into the following phases:

Rising Phase:

  • Prices continue to rise, making higher highs and higher lows.
  • Buyer power is strong and selling pressure is weak.
  • When the band goes up, the price target tends to be higher.

Calibration phase:

  • The price fell briefly, but did not fall below the upward trend line.
  • Seller pressure is increasing, but upward momentum remains strong.
  • Correction is usually a mid-term feature, laying the foundation for the next round of rise.

Down Phase:

  • The price continues to fall, making lower lows and lower highs.
  • The seller’s power dominates and the buyer’s interest weakens.
  • When the band goes down, the price target tends to be lower.

Recovery phase:

  • The price rebounded briefly but did not break the downward trend line.
  • Buyer pressure has increased, but the downward momentum remains strong.
  • Recovery is usually a mid-term characteristic, paving the way for the next round of decline.

Understanding blockchain bands is crucial for traders as it helps them identify price trends, develop trading strategies, and manage risk. By analyzing swing patterns, traders can increase their trading profit potential and avoid significant losses when trends reverse.

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