Here are my insights on trading cryptocurrencies:
Observe market sentiment: Changes in trading volume and open interest can indicate the strength of bullish and bearish forces. If trading volume increases but the price doesn't drop, it may be about to stop declining; if trading volume increases but the price can't rise, it may be reaching a short-term peak.
Focus on key levels: Draw resistance lines, support lines, and trend lines on the chart. When the price reaches or breaks these key levels, take action quickly. I often use Fibonacci retracement to find resistance and support.
Stick to trading rules: Trade only one asset at a time for a period, keep a close watch on it, and only let go when it no longer has speculative value.
Monitor the market window: Use a one-minute window to look for entry and exit opportunities, a three-minute window for trends, and a thirty or sixty-minute window for intraday trend changes. Remember, if you hit a stop-loss, don’t rush; the next trade is a new beginning—don't let the previous trade affect you.
Finally, let me share a high-probability strategy that anyone can use. Set three moving averages on your candlestick chart for 5 days, 15 days, and 30 days; the 30-day average is crucial.
Choose cryptocurrencies that are in an uptrend or consolidating; absolutely avoid those in a downtrend. Divide your capital into three parts: buy 30% when the price breaks above the 5-day moving average, buy another 30% when it breaks above the 15-day moving average, and buy the final 30% when it breaks above the 30-day moving average. If the price breaks above the 5-day moving average but doesn't continue to break above the 15-day moving average, maintain your position as long as it doesn't break below the 5-day line; if it does, sell.
As a seasoned investor in the cryptocurrency space, I’m sharing my experience and insights for free. Interested in the crypto world but don’t know where to start? Follow me to see my insights and let me guide you to achieve freedom in this bull market.