In the cryptocurrency world for seven years, I went from losing over 100 coins in the first three years to gradually earning back several hundred in the following years. It sounds easy, but behind it are countless liquidations, reviews, sleepless nights, and painful adjustments to the system.
The market rules have actually remained unchanged:
90% of retail investors chase news and dance to its tune,
9% of smart people watch for movements from the major players,
The remaining 1% of tough individuals have already equipped their candlesticks with 'microscopes', using daily moving averages to see through the genetic trends of the market.
Step one: Recognize the three moving averages, like knowing three experienced traditional doctors.
Don’t treat moving averages as magic lines; they are more like three distinct traditional Chinese medicine experts:
5-day line: emergency room specialist, reacts the fastest;
30-day line: internal medicine expert, insightful about trend changes;
60-day line: outpatient expert, steady as a rock.
When you see the 5-day line suddenly strongly crossing above the 30-day and 60-day lines, it’s like an emergency doctor bypassing two seniors to jump in for rescue; the market is likely about to awaken.
On the contrary, if the 5-day line continuously falls below the 30 and 60, it’s basically like the doctor has collapsed; the market is weakening, so hurry to exit and save your life.
Step two: Install an automatic risk control system in your mind.
Post this phrase on the trading interface: 'When moving averages clash, commoners retreat.'
The meaning is simple: when the 5-day line and the 30-day line are tangled, no one can clearly define the direction; entering the market at this time is basically like rolling dice with your life.
A true master waits for the three lines to align clearly before decisively taking action.
Counterintuitive reminder: The more intense the cryptocurrency market, the more you need simple technical logic. A truly effective system is not flashy, but stable—
A breakout of the 5-day line is a signal to strike;
A turn in the 60-day line is a reminder to pull back.
Like martial arts experts sparring, each move seems simple, yet every action is deadly.
Step three: Discipline is not a suggestion, it’s a hard rule.
Too many beginners write their plans in a memo, and when the market suddenly spikes, it collapses instantly, prompting them to change strategies on the fly.
Those who use the daily moving average strategy have long since welded discipline into their operating system. When the signal comes, they act without hesitation or ambiguity, in and out like a machine.
There’s a real story: I know a guy who steadily used this trading method for three years, not even missing his wedding day. Just before the ceremony, he suddenly received a warning that the 5-day line broke, so he went to the bathroom to close his position, and then came out to put on the ring. The bride was furious, but after seeing the account balance, she stopped arguing and quietly replaced his monitor with a high-refresh 4K one the next day.
Remember this: you can doubt candlesticks, but never question the trend signals under the combined moving averages.
Trading coins, don’t fear a low starting point, just fear a lack of method.
If you want to make money, don’t be an emotional lone warrior.
Only by following the right rhythm and understanding moving averages can you escape the cycle of losses.
Follow me, and let’s turn the painful lessons of losses into experiences that double our gains.