Opening - The future is on-chain.
The on-chain market share has gradually increased after the meme explosion, from less than 10% at the start, exploding through zoo animals, AI, celebrities, and Trump, to a market share exceeding 25%. Although memes have been affected by Trump coins, they still maintain high activity. On the other hand, CEX's VC coins peak upon launch, with many old coins starting to decline, forcing users to migrate on-chain.
Therefore, it is expected that the future will certainly be an on-chain era. The share of the chain market will coexist highly with CEX, and of course, it’s the cycle of all-chain Alpha. The concept of the chain will become blurred, as the infrastructure has improved, and funds from different ecosystems are interconnected. It all comes down to product and operational capabilities; fortunes change.
This article will systematically outline how to scan the chain and trade memes. The planned length is limited, so it will be concise and share stable strategies. I hope it helps everyone. For further discussion, please feel free to join the OW community.
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This article has three chapters, directory.
I: Preparation for meme chain scanning.
1️⃣ Choose suitable tools.
Traditional tool combinations.
Use new tools.
2️⃣ Join suitable communities.
Five types of meme communities.
How to choose.
3️⃣ Time and energy management.
Distribution of golden dog time.
Full-time dog or work.
II: Meme chain scanning and trading introduction.
1️⃣ Systematize your information flow.
Two information flows.
Dealers, bots, early smart addresses, KOLs, reverse indicators.
2️⃣ Optimize your chain scanning and trading strategy.
Buying, pre-purchase homework.
Holding, information to pay attention to during holding.
Selling, 9 selling points.
3️⃣ Position and mindset management.
Position: 10% investment, batch profit-taking, timed withdrawals.
Mindset: method, diligence, luck, execution.
4️⃣ On-chain level.
Three-column chain scanning.
Signal chain scanning.
5️⃣ On-chain phase two.
Filtering parameters.
Research projects.
III: Tools and tutorial summary for meme.
1️⃣ Monitoring and trading.
2️⃣ Analysis.
3️⃣ Community links.
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I. Preparation for meme chain scanning.
1️⃣
To do a good job, one must first sharpen their tools.
Currently, there are many tools on the market. Mainstream tools that everyone is using should be tried out. Only through actual use can you find out which ones suit you better. Identify two tools to use in conjunction while diversifying on-chain capital risk.
🍀Traditional tool combinations:
One monitoring tool (to monitor addresses, Twitter tweets, latest interests) + one data analysis platform + two trading platforms. The monitoring tool can use debot; data analysis can choose gmgn for complete data tags. One trading platform web-based, the other TG bot. When the webpage is extreme, switch to the TG bot quickly. The TG bot is faster than the webpage. You can choose GMGN and the full chain pink pig (this is especially suitable for BSC, automatically preventing slippage). Of course, there are many excellent platforms to choose from, such as Axiom, XXYY, photons, etc. (Tool and tutorial summary can jump to Chapter 3).
🍀🍀Use new tools:
Currently, Axiom transaction volume has become the number one on-chain. The features of this platform, the tools mentioned above are efficiently matched, and Axiom just happens to solve all user pain points in one go, integrating chain scanning, analysis, monitoring, perp, and yield into one.
Data refreshes in real-time, and transactions are very smooth, avoiding slippage. Checking information is also quick, supporting monitoring of addresses and Twitter accounts in a floating window. For example, hovering the mouse can immediately show Twitter hover previews without switching web pages, saving a lot of time. It can be said that Axiom is the ultimate tool for chain scanning and trading (Axiom tutorial jumps to Chapter 3).
2️⃣
🍀The meme communities on the market can be roughly divided into five types:
a, Free community.
There is a lot of junk information in everyday searches with over 999 daily messages. This type of community can be joined as a source for social information flow (this will be discussed in the advanced meme section), but don’t spend too much energy on it; just go with the flow.
b, Pure TG Channel.
No discussion groups. The information released by this type of blogger is highly valuable and infrequent, making it easier for you to collect information. You should spend more energy keeping an eye on this channel.
c, Paid KOL communities.
These communities have two types: one is small KOL fan bases with low capital, who like to lead the community to attack small market caps for high multiples (very few such community members buy in large amounts and collectively shout on CT; this strategy has limited growth, and if the narrative is not strong enough, others won’t take over easily, leading to a quick stomp). The drawback is that the calls are frequent and require some effort; the other type is large KOLs with substantial capital who prefer Level 2 markets, only making calls when certainty is high, resulting in low frequency of only 1-2 times a month.
d, Paid signal communities.
These communities mainly look at signal quality, using two main indicators for reference: moderate signal frequency and whether most golden dogs have early alerts daily. Good signals will greatly enhance the effectiveness of chain scanning, as Alpha's source is on-chain; this is the most direct.
e, High-threshold small circles.
These groups generally do not exceed 15 people, all of whom are active players on-chain and familiar with each other. If there are golden dogs, they can remind each other via phone. You should strive to join such a small circle and deeply befriend 2-3 top or stable traders.
🍀🍀How to choose:
Try all five types above to find the information channels and meme teams that suit you.
3️⃣
🍀Common time distribution for the golden dog:
a, Overall market liquidity good time distribution.
sol 10 PM > 2 PM the next day, bsc btc look at 3 AM > 8 PM the same day.
b, Overall market liquidity poor time distribution.
sol 3 AM > 10 AM the same day, bsc btc 10 AM > 6 PM the same day.
🍀🍀Full-time Dog/Work:
Reasonably allocate energy. Focus on the best liquidity chain signals during certain time periods. For full-time doggers, since no one is watching you, strong self-discipline is needed. The most important thing is to ensure rest time, eat well, exercise moderately, and maintain concentration during chain scanning. If you know you lack self-discipline, you can find a class.
For workers, there won’t be much time to scan chains, so it’s recommended to focus on doing two phases, studying the targets that come out before getting in. Two-phase trading will be introduced in Chapter 3.
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II. Meme chain scanning and trading introduction.
1️⃣
Look at the whole picture from an advantageous position.
🍀Two information flows:
a, On-chain information flow, dev/dealer > extremely early sensitive smart money > KOL addresses/whales > retail investors.
b, Social media information flow,高手扫链小群 > TG > CT.
🍀🍀How to operate:
a, Find early smart money.
Look for extremely early sensitive smart money and monitor it. The basic principle of selection is stable players, using signals to scan the chain. This is the most direct source of Alpha. With early CA, the remaining tasks are to enhance narrative judgment, valuation ability, and your position management and execution (this will be discussed in the next section).
b, Join expert small groups.
You also need to become an expert first and sincerely befriend real experts.
c, Avoid dumping bots.
In the extremely early sensitive smart money stage, aside from normal early traders, there are numerous snipers and quantitative bots. These addresses belong to merciless dumping machines, so avoid them.
Common dumping bots.
DfM xre4cKmvogbLrPigxmibVTTQDuzjdXojWzjCXXhzj
8rvA sDKeAcEjEkiZMug9k8v1y8mW6gQQiMobd89Uy7qR
AJK gkQyHQBMK8MVkoKfp7qZo3VUMLiLszZV2WM9BhJgF
d, Reverse indicator addresses.
In addition to avoiding dumping bots, another type of reverse indicator should also be included in trading. This helps with timing for offloading (this will be discussed in the next small section). This type of address likes to chase highs, trades frequently, and suffers continuous significant losses.
Here are examples of reverse indicators:
CSi ZG5sBsNDgLmbEH54hfLNAn3f3JXVsTqU1LzZTD3KX Loss of 870k
31f KDsjoYMgvoCcdxxQn6KLkvsHnyHVCKo3f8ecRkbcj Loss of 200k
e, Dealer Address
The last part of dev/dealer, there are already many tutorials on finding dealers on CT, the main idea is to find through the increase and decrease of addresses in one-sided pools, DCA strategy addresses, and associated address behaviors. Tools are generally used like Arkham. Finding dealers can give a rough idea of the main player’s cost area, market protection, and selling positions. However, dealers might also use this to create false order information, so it only aids judgment.
Another function is to label addresses. Every time the big golden dog appears, there will be a batch of addresses for absorption, market making, and selling. Marking these addresses can help identify which team this market belongs to and the expected market cap. This situation occurs less frequently, and besides a few obvious ones, most will switch to new addresses.
Whether it's normal early smart addresses, dumping bots, market making addresses, or reverse indicators, it requires everyone to accumulate and label regularly, forming a rich on-chain database to assist in making quick judgments during trading.
Here is a data library of labeled smart money and dealer addresses with over 2000 entries (can be directly imported into Axiom). Friends who need to study can download it in the OW channel, OWfullchain.
2️⃣
Trading only has three steps: buy, hold, sell. Simplify complexity and strictly execute.
🍀Buying:
a, Contract safety.
You can see the basic safety of CA on platforms like gmgn, whether it’s a Pixiu, whether it’s open-source, whether the pool is locked, and whether there’s a waiver.
b, Summarize narratives.
On one hand, you can utilize AI summarization tools like debot to automatically summarize; on the other hand, manual searching for Twitter content for quick summaries is needed. Currently, there are too many advertising bots on Twitter, so while searching, blacklist a few to avoid them reappearing and affecting efficiency. Twitter has various filtering mechanisms that can be modified according to your needs; good narratives are very clear and straightforward, and can resonate and spread socially with just one sentence (when encountering golden dogs daily, summarize well, create a review form specifically for recording daily golden dogs’ narrative types, highest market cap, operation records, and thoughts, which can quickly enhance response speed to new CA).
The valuation changes during different liquidity periods, so there will not be a fixed value; flexibility is needed! For example, in original IPs, news events, celebrity coins, technology AI, and other tracks, assess comprehensively based on several dimensions—the influence level of the dev, whether the meme is viral enough, the length of the narrative cycle, and the concentration degree of chip structure. Then find similar projects during the same period to compare market caps based on current liquidity strength.
c, Chip structure.
The principle is that as long as the chips are not particularly outrageous, even if concentrated, it’s fine. But pay attention to some projects with obvious chip structure issues, commonly seen in gmgn, like front rows filled with small grass/small fish biscuit mouse warehouses; a large number of photons/bull addresses in the front rows; DEV holding over 5%, Top 10 over 20%; sniper and pouring bot ratios too high, etc.
🍀🍀During holding:
Things that need close attention during holding include social dissemination efficiency and on-chain data, including the increase in holders, trading volume, K-line trends, and which influential KOLs are promoting on Twitter. If it’s a technical meme, like AI, pay close attention to orderly analytical reasoning in English long threads, as this type tends to explode in value.
🍀🍀🍀Selling:
9 Selling Points.
a, Take profit based on on-chain information flow.
When KOLs (with following tags) enter, liquidity is at its best in the short term, and this is when you can offload; when reverse addresses buy, the market reaches extreme FOMO state, generally still able to surge 30-50%, so take profits in a timely manner.
b, Based on time nodes.
On-chain liquidity is affected by time regularities as well as the overall market cycle and emotions. Therefore, keeping an eye on and recording liquidity conditions at different time periods is also essential. The simplest two methods are: first, observe the activity of smart money you focus on throughout the day; second, count the number of successfully launched projects in different time periods.
c, Take profit based on price market cap.
Generally, small angles are 200k-300k, small narratives are 3-5m, medium narratives are 20-30m, and large narratives are 50-60m. This CA belongs to what level of narrative, and how to classify it according to the scoring corresponding to the four dimensions of different tracks mentioned in the previous section.
d, Take profit based on the increase multiple.
In cases of good liquidity, take back principal above 3 times (in cases of poor liquidity, at least double the principal), and then take profit in batches, 5-10% each time. During the holding period, study the market, narrative, and chips, and adjust dynamically.
e, Based on chip structure.
When market cap rises to a certain height, and the turnover among front rows remains poor (especially for KOL addresses), it indicates unhealthy chip structure, and you need to reduce your position. The second situation is when addresses among the top 30 that are non-KOL addresses have realized significant profits (or top 30 selling a large portion of chips increases), indicating that the main force is retreating.
f, Based on market sentiment.
Sometimes it’s not about whether you think this narrative is good; it’s about whether the current market sentiment is willing to pay. The simplest judgment method is to observe the growth of addresses and the quality and quantity of KOL content shared on CT. When you find that addresses are no longer increasing or even decreasing, and the shared KOL timeline spans widely without further increase, then it’s time to act without hesitation.
g, Based on K-line and volume-price relationship.
In terms of K-line, four common selling points:
—— Break below 1 minute (the larger the market cap, the larger the observation cycle). If the K-line trend line is breached, exit, and if you want to re-enter, wait for stabilization.
—— Price breaks a new high (or previous high position), but the trading volume is lower than around the previous high point, you need to reduce your position.
—— If it has already multiplied many times and shows high volume at a high position, this is the best liquidity and also the position where you need to take profits.
—— Use Fibonacci expansion lines; expanding upwards to the 1.618 and 2.618 positions are common selling points.
h, Narrative upgrade.
When the narrative upgrades, it will bring a considerable wave of liquidity. Combine the above indicators, especially K-line volume-price, to find positions to sell.
i, Liquidity being absorbed.
If a super golden dog appears, the current holdings are likely to be blood-sucked, so reduce or clear your position decisively.
3️⃣
This part is the most crucial in trading. A stable position and mindset are fundamental to continuously profit in the market.
🍀Position:
a, 10% investment.
Invest according to your asset scale, and do what you can bear. Once it exceeds, trading can easily become distorted. For example, if you invest 1000 dollars, each trade cannot exceed 100 dollars (some may encourage all in, of course, you can instantly make a big profit, but if it retraces by 50%, you won’t bear it and may even affect your mindset, leading to a direct explosion). Therefore, giving yourself more margin for error is very necessary, meaning you have more chances.
b, Batch profit-taking.
Selling too early means missing out, and selling too late means retracement; this has been verified countless times. Batch profit-taking is the best stable strategy. The eight selling strategies mentioned in the previous section can be combined to yield many selling points. The hardest part of batch profit-taking is overcoming your greed, as you are on the vehicle, and your subconscious will look for many positives to support yourself rather than analyze objectively.
So there are two ways: one is to set the bot’s batch selling parameters in advance, using the bot to help you take profits and avoid emotional control; the second is to continually train your profit-taking operation. Once it reaches the selling point, sell immediately to form a habit and use inertia to counteract.
c, Timed withdrawals.
Everyone has different amounts of money they’ve seen, which forms a subconscious profit target in their mind. For example, if they have seen 1m, the profit target may become 10m. When this mindset opens up, it often becomes irrational and leads to easy pitfalls.
A better approach is that when you earn more than your seen money ATH, you should sell all immediately, withdraw 80%, and then rethink how to bring the funds back to the current level. When you achieve this again, repeat this operation to continuously increase your cash flow.
When encountering a certain opportunity like Trump, having more chips gives you a larger winning chance and even directly reaches the next goal you truly want to cross.
🍀🍀Mindset:
Successful trading is the result of methods + diligence + luck + execution. You should strive in these four aspects.
Currently, on-chain transparency and the efficiency of information dissemination are increasing. Level 1 trading competes on decision reaction speed, while Level 2 competes on research capabilities. Improve the corresponding capabilities based on your situation.
a, Method.
The previously introduced systematic information flow, buying, holding, and selling methods. Deeply understanding that trading essence is the result of winning rate x odds, striving to improve the winning rate, while making more when winning and at least losing less. In the words of an old trader, cut losses and let profits run.
b, Diligence.
Many people on CT who achieve great results have gone through countless retracements, torments, and long periods of perseverance. It’s not as easy as it seems. Therefore, daily chain scanning, skill improvement, and reviewing thoughts cannot be skipped; ultimately, trading relies on oneself.
c, Luck.
Firm your trading beliefs. If you are not a trading genius, just systematically execute every aspect of trading, exploring and optimizing your successful operations, and then continuously replicate them. Luck will naturally come.
d, Execution.
Often, many opportunities come, but they are missed. The reason is that not all three aspects are executed or not formed into habits. Even if opportunities arise 10 times, they still cannot be grasped. Each time is executed more decisively, resulting from the feedback loop between operation and harvest. Therefore, looking, learning, and practicing more is key to advancing in trading.
If you can firmly adhere to the above principles regarding position and mentality management, congratulations, you will achieve long-term stable profits in web3. After multiple withdrawals to a certain scale, you must purchase some houses, cars, deposits, and invest in your physique, appearance, and hobbies in the real world. Gradually improving the quality of life is also the confidence to stabilize trading skills and the motivation to cross classes.
Making money is easy, but keeping it is hard. For friends who earn big money for the first time, remember not to get carried away!
4️⃣
🍀Three-column chain scanning.
Here I use Axiom because it is the fastest platform for chain scanning and trading. Many useful features, such as tweet previews without redirects, monitoring smart addresses, and floating windows for Twitter accounts.
Three-column chain scanning tests the player's patience and sensitivity to narratives, response speed. Buying and selling must be decisive; otherwise, it’s very easy to go to zero. But the charm is that it can yield high multiples. Recently, I’ve bought in at 5k using Axiom and easily pulled 10 times.
Three-column chain scanning parameter settings: Axiom provides very detailed filtering parameters, such as filtering devs, snipers, and bundled address holdings. It can also filter how many smart money addresses (labeled internally by Axiom) must be shown before revealing.
Commonly used setting parameters.
In new trading pairs: TOP10 set to below 30%, dev, snipers, bundles all set to below 10%, trading frequency set to no less than 60 times per minute, social media set to require at least one tweet, and number of holders set to greater than 30.
a, About to launch: set the market cap display to within 30 minutes, and require at least one Twitter account for quick previewing of tweet content.
b, Launched: Set the time to 4 hours, and require at least one tweet account.
c, The above parameters can all be dynamically adjusted according to your needs and the actual market heat.
🍀🍀Signal chain scanning.
There are many types of signals, mainly introducing two: large purchases and volume anomalies, multiple addresses buying simultaneously.
a, Large purchases and volume anomalies almost always appear at specific times. You need to monitor what trading cycle, generally for targets below 3m, monitor for 5 minutes with trading volume greater than 500k. When this signal appears, pay attention.
b, Multiple addresses buying at the same time. This part tests the stability of address selection. It must be smart money among smart money, equivalent to having multiple top smart money helping me scan the chain. When signals appear, take 30 seconds to 1 minute to quickly assess the contract, narrative, chip structure, and then buy.
5️⃣
🍀Filter parameters.
Screening twice daily for the last 48 hours, market cap between 1-5m, pool about 100k, and trading volume greater than 1m.
Why choose this market cap range? Because large holders and whales prefer to purchase targets greater than 1m, which is also a matter of capital capacity. This type of smart money buying can bring in more traffic.
🍀Research Project:
a, Fundamentals.
Mainly look at the project’s own quality, past history, shared attention, and the influence of interacting accounts, which can roughly judge what kind of audience it can reach.
b, Chip structure.
Mainly judging whether it is high-controlled or community-based. High control means the rhythm is faster, while pure community type requires a longer period. If your on-chain database is rich enough, you can directly see the association of this project with a certain market-making or conspiracy group, which can assist in judging the operation style and market cap height of this project.
c, Stage of narrative and valuation changes.
Judging what stage the project is currently in—whether it is in the traffic dissemination stage or if consensus has been formed, or if the narrative has upgraded, such as forming a track and potentially becoming a leader, the valuation has been introduced in the narrative section of the previous chapter.
d, Buying point.
After choosing the target, just patiently wait for the best risk-reward ratio position. The most commonly used is Fibonacci retracement, making batch purchases at the retracement ratios of 50%-61.8%.
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III. Meme tools and tutorial summary.
For this content, please check OW's X.
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Meme is a wave, and also a mirror.
Those who understand will eventually arrive quietly at some moment.