There is a very foolish method of trading cryptocurrencies that almost guarantees 100% profit. I earned over 20 million using this method!
Today, I will share a method that is actually very simple. Even if you are a novice in the cryptocurrency world, as long as you strictly follow this method, you can easily make money.
First, we need to set the moving averages on the candlestick chart to three lines: the 5-day moving average, the 15-day moving average, and the 30-day moving average. The 30-day moving average is the lifeline; it is a strong support or resistance line. Then you can buy and sell based on these three moving averages.
1. The selected cryptocurrency must be in an upward trend; of course, it can also be in a consolidation phase, but it must not be in a downward trend or have moving averages that are all pointing downward.
2. Divide the funds into three equal parts. When the price of the cryptocurrency breaks above the 5-day moving average, buy 30% with a light position. When the price breaks above the 15-day moving average, buy another 30%. Similarly, when it breaks above the 30-day moving average, buy the final 30%. This requirement must be strictly followed.
3. If the price does not continue to break above the 15-day moving average after breaking above the 5-day moving average, and instead shows a pullback, as long as the pullback does not break the 5-day line, maintain the original position. If it breaks below, sell.
4. Similarly, if the price breaks above the 15-day moving average but does not continue to break higher, and the pullback does not break the 15-day moving average, continue to hold. If it breaks below, sell 30% first. If it does not break the 5-day moving average, continue to hold the remaining 30% position.
5. When the price continues to break above the 30-day moving average and then shows a pullback, sell according to the previous method at once.
6. Selling is the opposite. When the price is at a high position and breaks below the 5-day line, sell 30% first. If it does not continue to go down, hold the remaining 60% position.
If the 5-day, 15-day, and 30-day lines all break, you must sell everything. Do not have any illusions about this "foolish" operation method. Although simple, the most important thing is to have execution power. Once you buy in, the buying and selling system is formed. Only by strictly following trading discipline can you earn profits.