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salem Al-Awlaqi
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Welcome! This is a very important topic that touches on the essence of successful trading in the cryptocurrency market. As mentioned, the key is to monitor the entry of large liquidity before a price explosion. Here is a simplified and detailed explanation of the tools and signs that can help you with that, along with illustrative images 📈 Liquidity Entry Analysis: Signs and Tools Liquidity is the fuel that drives prices. When "Big Money" (Smart Money or Whales) flows into a currency, it leaves behind clear traces that an alert trader can spot. 1. 📊 Tool: Volume Analysis Volume is the most important indicator of liquidity entry. It represents the number of coins traded over a specific period of time. * The basic idea: If the price rises, but the trading volume is low, this is a weak rise that may not last. However, if the price rises with a huge and sudden increase in volume, this confirms the entry of strong institutional liquidity. 🔸 Sign: Sudden Volume Spike | Sign | Description and Interpretation | |---|---| | Huge increase in volume | Appearance of trading volume bars much longer than the daily/weekly average. | | Volume coincides with price | This huge increase in volume coincides with the start of a strong price movement upwards (or downwards). | | Interpretation | This sudden increase in volume indicates that a very large party has begun to buy in massive quantities, which represents the beginning of accumulating the currency before its launch.
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