I have been trading cryptocurrencies for over ten years, achieving financial freedom from liquidation to now, supporting my family through crypto trading. In 2024, my capital increased 50 times; if it weren't for withdrawing funds twice to buy a house, it should have been 85 times.
Today, I will share my trading strategies and insights with my crypto friends.
There is a saying, stand on the shoulders of giants to achieve ten years less struggle.
At the end of the article, I will also discuss the most important cryptocurrency trading strategies and techniques that you must read carefully. I recommend saving this! For those who happen to see this and want to improve their cryptocurrency trading skills,
From loss to profit: 5 key naked K trading rules that every trader should know!
Price Action trading is also known as 'naked K' trading and is very popular among traders. For price action traders, the movement of the price itself is the main signal for entering and exiting the market. Price momentum, trends, and volatility influence their trading decisions.
Price action trading strategy is a process that utilizes changing price action data to observe and make buy/sell decisions on trading charts. Price action trading attempts to use entry and exit signals with a high win rate to create a favorable risk/reward ratio, thereby achieving profitable trades, with the total profits exceeding total losses over time.
The price action trading process is contrary to making trading decisions using opinions, forecasts, and emotions. Price action trading is the process of determining whether to buy, sell, or hold positions based on what is happening in the market. Pure price action can show the current behavior of buyers and sellers across any time frame. Listening to what is intuitively conveyed on the chart (signals) can be considered both technical analysis and art.
Price action trading has four main dynamics:
1. Entry signals based on breakouts, declines, trading ranges, or chart patterns.
2. If trading is to be done, stop losses should be set at levels that are difficult for the price to reach.
3. If a profitable trade reverses, trailing stops can help you lock in profits.
4. When the price reaches the set level, the profit target for locking in maximum returns will be set.
Price action trading rules create a framework and backing for traders' behavior to ensure they remain free from losses or liquidation while pursuing profits.
Here are the five most important price action trading rules that every trader should know:
1. Trend line rules+
Trend lines are identifiers and connectors of resistance and support in chart patterns.
Trend lines are identifiers of trends within the trading time frame.
Vertical trend lines must be drawn from left to right to identify one of the following trends.
1. Higher highs indicate an uptrend.
2. Higher lows indicate support in an uptrend.
3. Lower lows indicate a downtrend.
4. Lower highs indicate resistance in a downtrend.
Trend lines show the path of the least resistance.
D trend line breakout may lead to new extreme situations
D trend line breakout may indicate a reversal of the current trend direction.
A trend line breakout may also indicate that a correction of the current trend or a new trend has begun.
2. Trading range rules+
Range-bound oscillation charts have a clear support level where bulls will enter, so the price often does not fall below this level. Range-bound oscillation charts also have a clear resistance level where there are no buyers entering, so the price often does not break above this level. When the price breaks through resistance or falls below support and begins to deviate from the established price range, the range-bound oscillation chart starts to convert into a trend. Buying at support or selling at resistance on a range-bound oscillation chart can be profitable.
0 Price action range shows the 'crowding' between buyers and sellers.
① Most breakouts will fail in the initial attempts.
① Most breakouts will retrace to the previous range before continuing in the breakout direction.
Buy low, sell high.
First learn about K lines:
Pin Bar+ (Hammer line)
Note: The tail length of a Pin bar is 2 times or more than the body.
(Pregnant Line)-, Inside Bar+
Note: A typical inside bar refers to several candles being contained within the previous candle.
Three, Fakey+ (inside Bar false breakout)
Note: A typical Fakey refers to a false breakout occurring after an inside bar.
Four, Engulfing Bar+
Note: A typical Engulfing bar is characterized by the following candle completely engulfing the previous candle.
h, Bar Reversal (2K reversal)
Note: A typical 2K reversal refers to the second candle being delayed from the body of the first candle.
Six, Hikkake+
Note: A typical Hikkake pattern is formed by the second and third K lines resulting in a false breakout.
Note: Enter the market after the inside bar breaks within the three K lines formed after Hikkake.