A friend recently shared his trading results: in half a year, turning 10,000 USDT into 140,000 USDT in profits. He said there’s no secret trick, just treating trading as a craft to study diligently—watching the charts daily, analyzing K-line structures, and pondering the intentions of the main players. Today, I want to share his six practical insights. Truly understanding one of them can significantly improve your risk management in the crypto space.

**Washout Patterns Are Detectable**

Prices surge rapidly but retrace slowly? That’s a typical washout rhythm. During this phase, the main players aim to scare out retail investors’ chips. The real top is a different story—usually, it involves a volume spike pushing prices higher followed by an instant crash, leaving no time for reaction. These two movements are very different; recognizing them helps avoid getting cut once again.

**Avoid the Weak Rebound After a Sharp Drop**

A terrifying decline followed by a feeble rebound indicates capital is fleeing. Rebounds that climb step-by-step are especially confusing—your brain unconsciously thinks, “It dropped so hard, it should reverse soon,” but this logic is wrong nine times out of ten. The main players won’t give retail investors a chance to turn the tide during distribution.

**The Secret of Top Volume**

High volume at a top doesn’t necessarily mean the peak. It indicates that bulls and bears are still fighting, and there’s potential for further pushing higher. The real danger signal is a sudden disappearance of volume—this usually means the main players have withdrawn, and a slow decline is likely to follow.

**Distinguishing True from Fake Bottom Volume**

Excited by a single-day surge in volume? Stay calm. A one-off large transaction could be a trap to lure more buyers. The key is whether volume can be sustained afterward. If volume continues to rise over time, that’s a genuine sign of accumulation. Don’t be fooled by a single day’s market movement.

**Volume as the Market’s Thermometer**

K-line charts show the trading outcome, but volume is the real driving force behind it. Light trading indicates a lack of market heat; high volume shows genuine capital action. Habitually monitoring volume changes allows you to detect market turning points earlier than others.

**The Highest Realm: Wu Wei (Non-Action)**

Know when to rest and when to act decisively. Don’t blindly chase rallies, panic-sell during dips, or recklessly tinker with your account. Everyone understands this in theory, but few can truly do it. This is the most difficult discipline in trading.

Opportunities in the crypto space are always present, but most people lack patience and a clear mind. Your skills might be fine, but the key is whether you can maintain judgment amid market fluctuations. Follow the right rhythm, avoid reckless moves, and time will gradually reveal the true face of this market. $ETH $BNB $SOL