One, Trend is Key; Profit Only by Following the Trend
Accurate Trend Judgment: Utilize trend lines and moving average systems to precisely lock in the overall direction of market movements. Strictly follow trend directions when trading; firmly go long in an uptrend and decisively go short in a downtrend.
Key Point Control: Use historical trading dense areas, Bollinger Bands, and chip distribution tools to accurately locate support and resistance levels, providing reliable bases for buying and selling decisions.
Volume-Price Interaction Verification: When the price breaks through key resistance levels, it is essential to pay attention to whether the trading volume simultaneously increases to confirm the validity of the breakout and effectively avoid false breakout risks.
Two, Combined Use of Technical Indicators to Improve Signal Accuracy
MA5/MA20 Moving Average Crossover: The crossover of short-term moving averages can serve as an important signal for judging short-term trend changes.
MACD Indicator Observation: Pay attention to the contraction or expansion of the MACD histogram to capture potential trend reversal signals.
RSI and KDJ Collaborative Judgment: The RSI indicator can effectively assist in determining market overbought or oversold conditions. When RSI exceeds 70, it indicates that the market is overbought, which may be a time to take profits; when RSI is below 30, it indicates oversold conditions, which may present a buying opportunity. Additionally, combine this with KDJ's golden cross or dead cross signals to further validate the reliability of trading signals.
Bollinger Bands and ATR Combination: When the Bollinger Bands show a narrowing state, it indicates that the market may be about to undergo a change. Combine with the ATR indicator to set dynamic take profit and stop loss points to better adapt to market volatility.
Three, Strict Control of Risks for Stable Returns
Strict Stop Loss: Limit the loss on each trade to strictly within 3% of the principal. Once the price drops below key support levels, immediately close the position to avoid further losses.
Dynamic Take Profit Strategy: When trading profits exceed 15%, activate the trailing stop mechanism, moving the breakeven point up with the profits to ensure that already earned profits are not given back to the market during corrections.
Scientific Position Control: Limit the holding ratio of a single cryptocurrency to within 20% of the total position. When establishing a position for the first time, do not exceed 50% of the total position to prevent a single trade failure from impacting overall capital too much.
Four, Three Key Elements for Asset Selection, Screening Quality Trading Targets
Sufficient Liquidity: Prioritize cryptocurrencies with a 24-hour trading volume exceeding $100 million to avoid trading slippage due to insufficient liquidity, which can affect trading results.
Suitable Volatility: Choose cryptocurrencies with a volatility rate greater than 8%. These cryptocurrencies typically exhibit higher volatility, making them more suitable for swing trading to gain profits.
Focus on Event-Driven Factors: Closely monitor significant events related to the cryptocurrency, such as mainnet launches, halving events, important partnerships, etc. These events can often trigger significant price fluctuations and create trading opportunities.
Five, Flexible Use of Time Cycles to Seize the Best Trading Opportunities
Intraday Swing Trading: Use 15-minute candlestick charts as the main analytical tool, while also considering 1-hour candlestick trends to judge short-term volatility direction. The holding time should not exceed 6 hours, focusing on capturing short-term trading opportunities.
Overnight Swing Trading: Develop trading strategies based on 4-hour candlestick charts, with a holding period set for 1 to 3 days, and filter trading signals by referring to weekly trends to improve the success rate of trades.
Focus on Special Time Periods: Pay particular attention to the opening period of the US market (Beijing time 20:30-22:00), as this period often sees greater market volatility and typically presents more trading opportunities.