This market is always repeating the same secret: 90% of the retail investors are focusing on news to trade coins, 9% of the smart ones are watching the movements of the big players, while 1% of the aggressive players are dissecting the market genes with moving averages.
Step 1: Verify the moving averages Treat the daily moving average as three distinctly different experienced doctors— the 5-day line is the head of the emergency department, the 30-day line is the skilled internist, and the 60-day line is sitting comfortably in the expert clinic. When the head of the emergency department suddenly perks up and rushes to check the pulses of the two seniors (the 5-day line crosses above the 30/60-day line), this signals that the market is preparing to enter the ICU for rescue. Conversely, if you see the head of the emergency department slipping and rolling down from the expert clinic's chair (the 5-day line crosses below the 30/60-day line), don’t hesitate, immediately adjust your position.
Step 2: Establish a trading system to prevent impulsive decisions
Now please stick a note on your trading interface and write in bold marker: When moving averages clash, ordinary people retreat. When the 5-day and 30-day lines are entangled like twisted dough, rushing into the market is akin to rolling dice and guessing odd or even. A true hunter only pulls the trigger when all three lines are marching in the same direction.
Here’s a counterintuitive piece of trivia: In the cryptocurrency world where wild fluctuations are common, the simpler the daily moving average strategy, the more lethal it becomes. Just like true martial arts masters never need to show fifty starting poses, a breakthrough of the 5-day line is the signal to draw the sword, and a turn of the 60-day line is the moment to sheath it.
Step 3: Weld discipline onto the operating table
I have seen too many people write their trading plans on napkins, only to tear them up in the middle of the night after being scared by a sudden market spike. The most ruthless yet merciful aspect of the daily moving average strategy is that it forces you to become an emotionless signal execution machine.
Here’s a bit of dark humor: A trader who had been steadily profiting using the daily moving average strategy for three years received a warning of a breakout of the 5-day line during a wedding last year and had to sneak into the restroom to close their position before coming out to exchange rings. Afterwards, the bride pulled on his ear and scolded him, but after seeing the account balance, silently got him a top-tier monitor.
(At this point, please pause for three seconds and engrave this sentence in your mind: You may doubt your operations, but never doubt the moving averages that have formed a consensus.) #币安Alpha上新 #加密市场反弹