Truly useful techniques are often simple and straightforward!
In the crypto world, there are too many complex methods, indicators, patterns, AI quantification, GPT strategies...
However, the ones making money are often a very small number of simple and effective methods.
'Cap' is such a simple yet extremely practical pattern.
It has three core characteristics:
Clear trend: it must form during an uptrend, belonging to a top reversal signal;
Two peaks parallel: two K-line highs are close, seemingly strong but without a breakthrough;
A bearish line plunges: ultimately forming a 'cap' pattern through a large bearish line.
Why is it effective?
Because it is not some flashy K-line combination, but a representation of the market's will to change.
It tells us: the bulls do not want to push anymore, the bears are starting to take action.
In the language of the market, this 'turning point' is more real than any indicator.
The truth of trading: it’s not complex, but 'clean and neat.'
Those who use the cap method are doing one thing:
'Find the top, and leave.'
Don’t fantasize about a rebound, don’t wait to break even,
No hesitation, no greed, no repeated validation.
Acting upon seeing signals is the victory of discipline.
You will find that those who can truly make money in the crypto world long-term never pursue 100% win rates,
Rather, it is about pursuing certainty in action, while ambiguity rests.
The moment the cap formation occurs, it is a very strong signal of certainty.
What you need to do is not to 'wait and see,' but to: cut your position, leave, and wait for the next opportunity.
Many people die waiting for a rebound, die from 'unwillingness,'
In fact, they all fail due to lack of signals, but rather due to emotions.
The so-called 'foolish method' is often closest to the truth of the market.
You will find a very ironic rule:
The less experienced and less skilled people are, the easier it is for them to make money using the cap.
Why?
Because they don’t understand so many indicators, they see a large bearish line and run, simple and crude, yet avoiding most risks.
While some self-proclaimed 'experts' look at MACD, volume, Bollinger Bands crossover, AI predictions...
Analyzing thoroughly yet dying in hesitation.
The most foolish method is actually the purest understanding—
'I don’t know the market, but I know to leave.'
That is why I call it the 'foolish' method,
Yet it can achieve a winning rate close to 90%.
Beyond signals, there is a respect for trends.
Trading is not divination, but a probability game.
You cannot control the ups and downs, but you can control your risk exposure and behavioral boundaries.
Trend breakout, follow the trend; trend breakdown, exit immediately.
The cap is not magic, it just reminds you when to stop fantasizing.
Just as a trading philosophy states:
'Taking profits relies on luck, stopping losses relies on discipline.'
Many people clearly judge the trend correctly but die in execution.
The cap method is a methodology that helps you 'make a decision.'
You don’t make money by being smart, but by surviving.
The crypto world is a place that goes against human nature in terms of cognition:
You want to catch the bottom, but it continues to fall;
You want to average down, yet it continues to drop to zero;
Just when you run away, it rebounds to show you...
But this is not the crypto world having 'opinions' about you,
This is just the market telling you with blood:
This is not a place to make money through emotions.
And the cap is precisely a strategy that goes against emotions and greed.
It tells you: 'Do not judge the future, only recognize signals.'
It allows you to constantly harvest certainty, rather than obsess over perfect judgment.
In conclusion: Beyond signals, there is a mindset.
Have you also experienced:
Adding to your position at the high, yet getting trapped all the way;
Knowing that the top signal has appeared yet hesitating to leave;
Being led by emotions until losses become numb...
If you have ever experienced these pains,
So the cap is not just a technique,
It is a correction of the 'irrationality' in trading, a mindset that respects trends and the market.
Smart people rely on predictions, experts rely on discipline.
True winners only do high probability things.
You don’t need complexity, just need to be loyal to trading principles.
Learn one pattern, understand one logic, and stick to one discipline.
You can survive in the crypto world.
And surviving is the premise of all winning rates.
I hope that everyone in the crypto world can understand the trends and seek victory steadily!
