Introducing the simplest spot trading method, which can be said to not only guarantee a 100% win rate but also allow you to capture trending markets.
Many people in the market want to trade spot but can never find a suitable trading method. Recently, through various reflections and summaries, I have found a relatively good spot trading method.
Cloud Chart System
Weekly Level
First, let's take a look at how past market weekly bottoms have risen, that is to say, what the market looks like after a weekly bottom.
As shown in the image below, it can be seen that almost every bottom is accompanied by a massive upward movement. If you only trade based on weekly level bottoms, then you can almost capture every significant market movement. Of course, there are also double bottom or double top situations, so let's discuss how to handle the issues of double bottoms or double tops.
Double Bottom
When the cloud chart indicates a weekly double bottom, it often means the market will experience a deeper pullback. Therefore, after entering at the first bottom and the market rises a certain distance, it is essential to set a stop loss at the cost price. Many people might ask, what stop loss for spot trading? In fact, we are trading at the weekly level, so when a weekly double bottom occurs, it is necessary to set a cost price stop loss and wait for the second bottom to appear before entering again.
Double Top
Similarly, a cloud chart double top also indicates that the market will have a higher level of upward movement. Therefore, handling double tops is more challenging than double bottoms. We need to use the daily level for reference, for example, during the pullback in September 2021, at the weekly top. Should we liquidate our positions or wait to enter after the pullback?
At this position, the market has reached the top at the weekly level, which carries a relatively high risk. Choosing to liquidate at this point is acceptable, but you can also choose to hold on and wait for a pullback to enter again. So, where should the next entry be? The answer is to enter at the daily level bottom. When the weekly pullback reaches the daily level bottom, we enter. If a daily rebound starts at this point, then the weekly market will likely form a second top, and the height will far exceed the previous peak.
Next, let's look at an example of a double top. The image below shows the first peak of this bull market, followed by a pullback. Should we enter after this pullback? At this point, we need to refer to the daily level chart.
At this time, the daily level chart can be examined for the specific pattern. If the daily level has completely reached the bottom, then purchasing based on the daily level reference will generally not lead to significant problems, allowing you to buy at the lowest point. Thus, you can also capture the final big market movement.
The above advice is for those with larger capital sizes or those who prefer to trade larger trends, especially for spot trading. Due to the high uncertainty of contracts and the varying abilities of each person in managing their positions, contracts are not recommended; spot trading is more suitable for this trading system.
For imitation, you can refer to the bottom of Bitcoin for buying in, which generally won't have too large a price difference.
Immediate Doubling, Let's Go!!!!
