In the crypto world, there is indeed a trading strategy with a winning rate of over 90%, simple and practical, suitable for everyone!
Applicable whether you are trading contracts or spot!
This is also a method I personally tested: over three years, using this trading strategy, I earned over 14 million U, with a monthly return rate of 155.22%!
If you also want to get a share in the crypto world, take a few minutes to read this article seriously!
5,000 U to earn 100,000 U: A guide to violent fund flipping with small funds in the crypto world.
Pure practical knowledge.
"In 3 months, turning 5,000 U into 120,000 U."
The secret to turning small funds into large ones is just two: concentrated sale + compound interest +
1. Must-follow military rules (life-and-death line) --.
1. Never go all in on a single trade (each time ≤ 20%).
2. Only trade coins with a daily trading volume of over 100 million U (to avoid going to zero).
3. Enforce a daily mandatory liquidation at 22:00 (avoid the risk of liquidation during the early morning).
2. The best opportunity pool for 2025.
New coin launch strategy.
Only select the top 3 projects launched on Binance/OKX.
Intervene when the turnover rate on the first trading day exceeds 200%.
Never average down on broken coins (case example: 6-month NOT quadrupled on the first day).
Sniping during the correction of leading coins.
Buy in batches when BTC/ETH pulls back 15%
Use 2x leverage (up to 3x).
Immediately stop-loss if it breaks the previous low.
III. Three-Stage High-Profit Operation Method.
Stage 1 (5,000 - 15,000 U).
Focus on one cryptocurrency daily for a 3% swing.
Trade a maximum of 3 times a week.
Stage 2 (15,000 → 50,000 U).
- Seize monthly breakout cryptocurrencies (e.g., May PEOPLE).
Withdraw 50% of the profits to secure the capital.
Stage 3 (50,000 → 100,000+ U).
March: 5,000 U - 8,000 U (buying ETH).
April: 8,000 U - 21,000 U (sniping WIF).
May: 21,000 U - 120,000 U (full not market).
Remember:
1. Only practice one strategy in the first three months.
1. Market sentiment and emotions: The strength of bullish and bearish sentiment can be analyzed from changes in trading volume and open interest.
If the volume increases but the price does not drop, it may stop declining; if the volume increases but the price does not rise, the short term may have peaked.
The volume requirements during the rising and falling processes are different.
Rising process: Requires sustained and uniform volume. Uniform volume in the 3-minute K-line chart indicates that the upward trend will continue; if a significant reduction in volume occurs...
Or a very large volume appears, indicating that the upside may be coming to an end.
Declining process: As long as there is a volume increase at some key positions, the downward trend will continue. When the price reaches a certain level and stops rising, while positions continue to increase and the prices of buy and sell orders keep getting lower, it indicates that the price may fall.
Increasing positions during stagnation is a very good shorting opportunity, or increasing positions during a decline is likely to rebound.
2. Key points: Draw the pressure, support, trend lines, etc. in the chart, and act quickly when the price reaches or breaks through these key points.
I personally use Fibonacci to predict resistance and support.
3. Trading rules: Only one variety can be operated in a phased timeframe.
Continuously track the varieties you operate until it no longer holds speculative value before abandoning it.
4. Market observation window: one-minute window -- this is prepared for grasping entry and exit timing;
3-minute window -- this is used to monitor the situation after entering the position;
30-minute or 60-minute window -- used to monitor intraday trend changes.
Here’s a reminder for everyone: Opportunities for operations are vast, but if you are stopped out, do not rush to make up for it immediately.
Once a stop-loss is triggered, that trade is complete. The next trade is a new trade, and the profit should be determined independently; do not set the target for the next trade based on previous operations, as this will lead to continuous losses.
After over 10 years of trading cryptocurrencies, I've used over 90% of the techniques and indicators available in the market, but I have consistently relied on this (bottom reversal) that can accurately capture the timing of entry, with a win rate of 100%. It's simple and practical; no trade without a pattern, if a pattern appears, profit is guaranteed! (Applicable to spot and contracts)
Table of Contents.
1. What is a bottom reversal?
2. Composition of bottom reversals.
3. How to interpret the neckline of a bottom reversal?
4. Application of bottom reversals.
5. What should be noted about bottom reversals?
6. Combine with technical analysis or indicators.
1. What is a bottom reversal?
A bottom reversal, also known as a bottom reversal pattern, is a type of bottom reversal pattern often used in technical analysis to determine trend reversal signals. The definition of a bottom reversal refers to the phenomenon where prices experience a downward trend for a period, followed by a false breakdown and subsequent trend reversal, shifting from downward to upward. Therefore, it is also referred to as a false breakdown bottom reversal or a false breakout bottom reversal.
Bottom reversal patterns are considered a bullish signal, indicating that a price reversal is imminent. The occurrence of a bottom reversal indicates that the bearish forces have been exhausted, and bullish forces are beginning to dominate, with the price likely to find a bottom and rise. By understanding the basic concepts of the bottom reversal technical pattern, investors can better seize market reversal opportunities.
2. Composition of bottom reversals.
Recognizing bottom reversal patterns is crucial for investors as it helps seize market reversal timing. Bottom reversals can be simply divided into 'breaking the bottom' and 'reversal,' so the first bottom reversal signal is the breaking of the bottom, followed by a reversal.
Bottom reversal patterns are mainly formed by the following characteristics:
After a period of decline, the price forms a bottom support level.
The price rebounds at the bottom support level, but the rebound is limited and cannot break through the previous high, forming a resistance level, which is considered the neckline.
The price then falls again and breaks below the support level, forming what is known as a bottom.
At this point, after the price breaks the bottom and rebounds again, breaking through previous highs or the neckline, a trend reversal is formed with 'breaking the bottom' followed by 'reversal.'
Note that before the formation of a bottom reversal, the price may also experience a period of consolidation at the support level before forming a bottom reversal.
3. How to interpret the neckline of a bottom reversal?
Like other bottom trend reversal patterns, the neckline in a bottom reversal pattern is also a key point after the pattern forms, mainly used to confirm the reliability of the bottom reversal.
The neckline of a bottom reversal can be seen at the high point created during the price rebound; this high point can be formed by one or multiple rebounds. Therefore, the progression of a bottom reversal is not necessarily a horizontal line; it can also be a diagonal line. Additionally, the formation of the neckline is not necessarily a single resistance level; it can also be a resistance range.
3.1 Neckline breakout.
When the price breaks above the neckline, we can usually determine the validity of the breakout by whether the K-line entity can close above the neckline. The longer the K-line entity breaks through, the greater the likelihood of a breakout.
Additionally, you can enhance the reliability of the breakout by observing whether the price can maintain above the neckline.
3.2 Neckline pullback.
In another scenario, after the price breaks the neckline, there may be a possibility of a pullback before the price continues to move towards the breakout direction, and the low point of the pullback may also fall near the neckline.
A neckline pullback can also be seen as confirming the validity of a bottom reversal and provides a trading opportunity for traders.
4. Application of bottom reversals.
After understanding the concept of bottom reversal and the identification methods, we will explore how to apply the bottom reversal technical pattern in actual trading. As a bottom pattern, it is usually used to judge buying opportunities after the price has hit a bottom.
4.1 Determine the formation of a bottom reversal.
After confirming the price has broken the bottom, the next step is to observe the 'reversal' of the bottom reversal. Traders should pay attention to whether the market shows signs of reversal. Signs of reversal may include whether the price returns above the support level after breaking the bottom or observing whether the price can break the neckline.
4.2 Seeking entry opportunities.
After making a judgment, the next step is to look for entry opportunities. Different trading forms or risk-averse traders can buy in various ways. Below, we will explain using the bottom reversal formed in the golden 4-hour chart.
Entry point 1: The price rebounds after breaking the bottom, and if the price returns above the support level, a bottom reversal may form, and more aggressive traders can enter after the K-line closes above the support level. It should be noted that before breaking the neckline, the validity of the bottom reversal cannot be confirmed, so traders should set stop-loss cautiously.
Entry point 2: After the price breaks the neckline, if the K-line closes above the neckline, it can be seen as confirmation of the bottom reversal, allowing traders to enter.
Entry point 3: From the golden trend shown in the above chart, the price shows a pullback after breaking the neckline, which also provides another entry signal for traders. More conservative traders can use this as an entry point, but it should be noted that not all bottom reversals will show the possibility of a pullback.
5. What should be noted about bottom reversals?
Bottom reversals can indeed provide investors with opportunities to buy at the bottom, but if the overall trend is downward and the bottom reversal fails, it may also lead to further price declines. Furthermore, when a price is in a downtrend, many price rebounds are likely to be short-term rebounds, forming a false signal.
Thus, when using bottom reversal patterns for trading, investors must have a corresponding risk control strategy; they can also combine it with other technical indicators or technical analysis applications.
6. Combine with technical analysis or indicators.
When applying bottom reversals for trading, combining with other technical analysis tools can better utilize the bottom reversal strategy. Here are several commonly used technical analysis tools:
6.1 Moving averages.
Use moving averages to judge the price trend. If the short-term moving average is below the long-term moving average (death cross), the market trend may be downward. Based on this, investors can wait until the short-term moving average is above the long-term moving average (golden cross) before implementing the bottom reversal strategy.
6.2 Relative Strength Index (RSI).
RSI is an indicator used to determine whether a coin is overbought or oversold. If the RSI value is below 30, it indicates that the coin has been oversold and may rebound. Based on this, investors can wait for the price to drop to a certain extent while the RSI value is below 30, implementing the bottom reversal strategy.
6.3 Support and resistance levels.
Support levels refer to price points where the cryptocurrency may stop falling after reaching a certain extent; resistance levels refer to price points where the cryptocurrency may encounter resistance after reaching a certain extent. Based on this foundation, investors can wait for the price to approach the main support level and implement the bottom reversal strategy.
Understanding the King of Speculation Livermore + Breakout Buying Method:
(1) First buy 20%;
(2) Assuming you bought wrong, if it drops 10%, immediately stop-loss, with a loss amount of 2% of the total position.
(3) Assuming you bought right, if it rises 10%, immediately add 20%;
(4) If it rises another 10%, immediately add 20%;
(5) Last time directly add 40%;
(6) Expand the winning results, and as long as the price does not drop by 10%, hold on;
(7) Sell all positions immediately if the price drops 10%.
The essence is to find high-probability trading opportunities, choosing the right targets and timing for buy-ins:
Trend judgment and acting in accordance with the trend.
(1) Recognize the overall trend.
Livermore believed that making big money relies on the overall market trend rather than individual stock fluctuations. He actively identifies the main market trends and the path of least resistance, unhindered by the rigid thinking of 'bull markets' and 'bear markets.' For instance, in 1907, he shorted first and then went long, and in 1929, he shorted near a high price, both yielding substantial profits.
Follow the trend: Buy in an upward market, sell in a downward market, act in accordance with the market direction, and choose to observe when the market has no clear trend, waiting to act once the trend is clear.
(2) Timing mastery.
Waiting for key points: Livermore patiently waits for key trading points, such as waiting 6 weeks before purchasing Bethlehem Steel until the stock price breaks 100 points.
Act after confirming the trend: Do not enter early; wait for market changes to confirm your viewpoint before decisively acting.
Capital management and position control.
Tentative operations: Start with a small position to test, such as buying 20% of the planned position. If profitable, increase the position; if losses reach a certain percentage (e.g., maximum 10%), stop-loss.
Refuse to add to losses: Do not add to positions when losing to average down costs, avoid expanding losses.
Diversify investments: Do not concentrate funds in one place, reducing the risk of betting everything on one outcome.
(4) Strict stop-loss and take-profit.
Firm stop-loss: Set a stop-loss point, such as a maximum loss of 10% on a single trade, liquidate unconditionally to prevent losses from expanding.
Let profits run: When the price is rising, do not fear pullbacks, think about the reasons for the rise, do not rush to sell, and let profits continue to grow.
(5) Independent thinking and reverse thinking.
Independent analysis and judgment: Do not easily believe in rumors, rely on your own research for decision-making.
Reverse thinking: Hold skepticism towards the mainstream market views, look for trading opportunities contrary to market consensus.
This is the trading experience shared by the instructor today. Many times, you miss numerous profitable opportunities due to doubt. If you do not engage and understand, how can you know the pros and cons? Only by taking the first step can you know how to boldly attempt the next. A cup of warm tea, a piece of advice; I am both a teacher and a friend who can talk with you.
Meeting is fate; knowing each other is destiny. The instructor firmly believes that those fated to meet will eventually cross paths, while those without fate will pass by as destiny. The journey of investment is long; a moment's gain or loss is just the tip of the iceberg along the way. It is known that even the wisest can make mistakes, while a fool may achieve something. Regardless of emotions, time will not pause for you. Pick up your worries, stand up again, and prepare to move forward.
Teaching someone to fish is better than giving them fish. In the crypto world, whether you are a novice or a master, with Mi Shao, you will gain not only financial benefits but also growth in investment knowledge and experience. In the process of following Mi Shao's investments, Mi Shao will not only provide analysis ideas for market trends, basic knowledge of watching the market, and methods for using various investment tools, but will also bring you wonderful interpretations of fundamentals, sorting out the chaotic international situation, and distinguishing various investment forces, allowing you to become a winner and an expert in investing!
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