Let me talk about myself; I will introduce myself first. I was born in 2008, from Shaoguan, Guangdong. I entered the crypto circle in 2013, and I really started to play well in 2016. In 2017, I hit the big bull market and made my first 10 million right at the start. After that, I got carried away; I lost all the money I earned and wiped out my parents' savings of over 3 million. I also borrowed 500,000 from relatives and friends to trade, all of which were lost in the market. In total, I lost over 8 million. My family was on the verge of collapse. My beloved wife argued with me every day about this, wanting a divorce. Under such immense pressure, I even thought about jumping off a building. Fortunately, my willpower remained strong at that time; I believed I could earn it back!
I'll tell you a truth: don't be jealous. Those who gain great wealth in the crypto circle and keep it are not lucky; don't deny it.
I won't mention how many pitfalls there were in ancient times; that was definitely more thrilling than now. Just speaking about now, those who made a lot of money and held onto it surely avoided all the following things perfectly:
In the crypto circle, if you want to truly achieve financial freedom, class leap, and realize compound interest, methods, techniques, and forming your own profit system are crucial!
- Once you master it, the circle will become your "ATM", making money as easy as breathing!
After more than 10 years of trading cryptocurrency, my wealth journey can be summarized as follows:
The first ten million took the longest and was the most painful; the trading system was continuously reshaped and polished, taking a year and a half.
The second ten million took three months
The third ten million only took 40 days
The fourth ten million took only 5 days, and 75% of the funds were earned in six months.
First, the answer: There is a chance, but you can only do contracts, and it requires a certain amount of luck
In the crypto circle, 3000 yuan is about 440u!
Optimal strategy recommendation: contracts
Every time using 100u, gamble on hot coins, and set appropriate stop-loss and take-profit levels
100 hits 200, 200 flips to 400, 400 flips to 800.
Remember a maximum of three times! Because the crypto circle requires a bit of luck. Every time you gamble like this, you can easily win nine times and lose once!
If 100 passes three levels, then the principal will rise to 1100u!
At this time, it is recommended to use a triple strategy to play
Make two types of trades a day: ultra-short and strategy trades; if opportunities arise, then add trend trades
Ultra-short trades are used for quick attacks, at the 15-minute level
Advantages: High returns
Disadvantages: high risk
Only do large-scale investments
The second type of trade, strategy trade, is to use a small position
For instance, using 10 times 15u to do contracts around the four-hour level
Use profits saved for regular large-scale investments
Third type, trend trade
Medium to long-term trading, once you pinpoint it, just go for it
Advantages: More gains
Find the right entry point
Set a relatively cost-effective risk-reward ratio
Ultimately, the difficulty in earning Q is not the method, but the execution.
A trading system is a weapon that allows you to achieve stable profits.
It can help you mark key positions, discover entry signals, and find trading opportunities that can make you money.
So coming back to the point, as long as there is a stable trading system, just act on the opportunities within the system. If you lose, it's no big deal; just take revenge and do what you should do. Leave the rest to the market, as in the end, you will always cover losses with profits.
However, the biggest problem for 99% of people is not having their own trading system, so they are afraid of losing money when trading. Because that money lost cannot be earned back, even if you earn it back by luck, in the end, you will lose it all again by skill.
So how do you have a trading system?
An excellent sniper, from the moment you receive the task, you should start formulating the overall plan
For example, how to select sniper positions, understand the habits and behaviors of the target task, what equipment you need, your entry route, your escape route, the environment around you, the camouflage you will use, and that you need to patiently wait for the target to enter your range
Thus achieving precise hunting! The same goes for an excellent trader, and the most important thing is to find your sniper position, i.e., how to accurately find the main support and resistance levels?
This article gathers my years of trading experience. Although long, it is of immense value. For friends who want to seriously learn technology, I strongly recommend you read it thoroughly; you will feel like you have struck gold.
1. Identify the five secrets of key positions
So how can you correctly identify key positions in the K-line chart?
Remember the following five conditions
The more contact points, the better
Have had a strong reaction
Very clear, easily seen
Has been rejected many times
Having acted as both support and resistance
The above five conditions
It doesn't need to meet all conditions to be called a key position
But the more conditions met
The stronger and more effective that position is
Next
I will gradually break down the above five points
The more touch points, the better
To prove whether a certain price is a key position
There is a very simple method
It is the number of times the market has touched
In our daily lives
When you find a situation that keeps happening
The first two times you might think it's just coincidence
But when this matter occurs for the third or fourth time
Do you find this matter quite suspicious?
It seems that this matter has some purposeful significance for a reason
The same position
At different times
The price has repeatedly failed to break this position
Have encountered resistance or support at this position
We will doubt something
Because this position is significant for the market
Does it have a special significance?
Is this position a critical position?
Is it this year's high and low?
In summary
A position that has had one or two reactions to the price line
It might just be coincidence
But when this happens more frequently
The probability of it being a key position will be much greater
Has had a strong reaction
We know that history always repeats itself
If the price passes a certain position
If there is no strong reflection
Then how can we have a reasonable expectation
Expecting the price to make a significant reflection again at the same position in the future?
The market is actually like humans
All have memories
But we usually only remember some things that leave a deep impression
For example
I will remember that day when BTC fell by 5000 points
But
I won't remember that day when ETH rose by 50 points
Everything is based on a concept
That is reasonable expectation
When the market returns to a position that has previously risen sharply or fallen sharply
We would have a reasonable suspicion that the price might repeat history
To make a significant reaction at the same position again
And that significant reaction is our profit space
And inside this position
In fact, many orders deployed by investment institutions have already been ambushed
When the price returns to this key position again
There will be opportunities to trigger their orders
As retail investors
If the views at this position are temporarily consistent with institutional investors
The price will quickly rush in the direction you desire
Stay away from your stop loss
Move towards your profit target
As the saying goes
"Follow the market maker, there's a bull market every day"
This is precisely what I have learned from years in the financial industry
One of the market maker mentalities learned
Very clear, easily seen as a good key position
There is a condition that must be very clear, explicit, and easily visible at a glance
If one day
When you open a chart
You find a position that looks like a key position
Or seems not to?
You see the price trying to encounter resistance there
Or support
The price seems to have reacted
But if it doesn't count as a significant reaction
I advise you to give up this position immediately!
Immediately!
Immediately!
Because even if you barely find a reason
Treat this as a key position
In fact, your confidence in this position has unconsciously been influenced
Why?
Because when a trading signal truly appears
You will definitely have hesitation
Will greatly influence your trading decisions
Even if you really entered
As long as the price line slightly moves in the opposite direction
You will become very scared
Even if there is a very strong WeChat account
That prompted you to make this trade
You are very likely to doubt yourself at this position
And gave up that real key position too early
Will cause you to exit early
Then you have given up your original trading plan
This trade will end in failure
Then you will not be able to achieve consistency, this great principle
What this market lacks most is trading opportunities
There are over 200 currency pairs in the cryptocurrency market that you can trade
There are also different forex, futures, and securities products
Never be afraid of missing entry opportunities
What we fear most is not following the trading plan we set
Entering reluctantly due to lack of confidence
Speaking of which
Also involves trading psychology
I will also organize and write some articles on trading psychology later
I will explain in detail for everyone later
Has been rejected many times
When we are pursuing girls
The most painful thing is not being rejected by the object of affection
It is not just being wildly rejected by the object of affection
Finding key positions is the same principle
We need to find the market's pain points
We hope to see a certain position
Multiple times at different times
Or continuously showing a rejection situation
Every time this reaction repeats
Our entry opportunities increase by one
Simply put
You will see K-lines producing near this position
Or several long upper or lower wicks in succession
Every time the price is rejected, it will move in the opposite direction
Implying that the price has expressed itself to the market many times
Have had multiple rises or drops
But they have all been rejected by the market
Immediately pulled back by the opposing force
This situation
Represents that there is strong power guarding this position
Whenever this situation occurs
Especially when the daily price successfully breaks through this area
We all see this as a strong and effective key position
Having acted as both support and resistance
In the world of trading
There are no eternal friends
And there are no eternal enemies
We would hope to see a certain situation
Yesterday's support became today's resistance
Or yesterday's resistance becomes today's support
Whenever the price breaks through the resistance of the past
Many times, it will also return to the same position for another rebound
At this time, if the price is rejected
This represents that yesterday's resistance has turned into today's support
This situation also represents that this position holds considerable standing in the market
Both the black and white circles will give him face
That is, both bulls and bears have once held this position
Every time we see a certain position
If it has acted as both support and resistance
We can simply judge that it is a key position
It's probably not wrong
After explaining the five key position conditions
Next, I will explain five application-related points
Common mistakes made by many crypto friends
And some practical tips for everyone
Second, the five common mistakes in finding key positions, and how to avoid them
The five common mistakes in finding key positions, and how to avoid them
Too many lines drawn
Reckless entry
It's a zone, not a line
The range is too large
Large cycle charts are more accurate
Too many lines drawn
In the application of finding key positions
The first common mistake
That is to draw a line for all the so-called support or resistance positions seen within the chart
The more lines you draw
Does not mean your trading opportunities are more
Does not mean that the money earned will also increase
Because many of the lines you draw are just some market noise
According to the five conditions mentioned earlier
Many of these are not qualified key positions
If the chart looks like this
Ultimately, it will only leave us dazzled
Impacting our trading decisions
Everyone should know a principle
The basic point of looking at charts is to keep the chart clear and simple
Make sure we can clearly see price action
What we mainly want to see is the price reaction
If too many things cover the K-line
That distracts us or makes us hesitate
It is absolutely a case of missing the point
So we only need to focus on the most obvious and important
And the nearest major support and resistance levels will suffice
Reckless entry
The second point is reckless entry
We will use a real market example
When we find a key position (as shown in the picture)
We see that the last time the price touched this position, there was a significant reaction downwards
Thus the price returns here again
Never think that the price will go down again
Enter immediately to short
Doing this is likely to lead to painful lessons
As mentioned earlier
In the world, there are no eternal enemies
There are definitely no eternal friends
Yesterday's resistance level can definitely become today's support level
A key position is actually a market equilibrium point
Both bulls and bears want to break through or defend here
So the power of both sides usually clashes at this position
What we need to do is wait for the outcome of the market battle
Observe the price's reaction to this position
Decide whether to enter based on the traces left from the clash between both sides?
Why enter? When to enter? When to exit? And so on, a series of trading plans
In simple terms
The best practice is to wait for a trading signal as confirmation
Then you enter
And this signal can be a technical indicator
Can be chart patterns
Can be K-line patterns
It can even be fundamental analysis
There are thousands of different combinations that can serve as trading signals
Due to limited space
I cannot finish everything in this article
So this matter will not be explained in detail here today
I will only summarize two or three trading signals in the last part of this article
In the future
I will target different entry signals
Write more detailed articles respectively
Interested friends remember to follow me
Don't miss it
It's a zone, not a line
We continue to explain the third wrong usage
Is the real key position
It should be a zone, not a line
Although the market will continuously repeat history
But the process in between will never repeat 100% the same
Moreover
The cryptocurrency market
Since its inception
It has been less than ten years
The market cycle is like the circle drawn in the picture above
Every circle will have some differences
It is difficult to draw an exactly identical circle
Not because I intentionally draw it that way
And it's not that there are too many uncertainties in the market
Although the results are almost the same
But the extremely low probability of completely replicating the previous process
Taking this as an example
The price appears to signal a rebound when it returns to this position for the second time
When it returns here for the third time
Based on your analysis
You decide to enter
Place the stop loss at the height of the previous retracement
But today the price is determined to go lower
Directly hitting your stop loss
If you draw this key position as a zone
Then your stop loss will move to here
Then your trade this time will succeed
And bring you substantial profits, the difference between a successful and failed trade
Just a subtle area
Draw key positions as zones
It can help us avoid many failed trades
And can allow the price to hit our take profit
This is the direction we want
The chances of an unexpected exit are greatly reduced
I believe once you see this
Friends who play contracts should feel deeply
The major event clearly has not changed
Still following your expected trend
It's because of that annoying needle
Got liquidated
The range is too large
Sometimes we will find
The drawn key position area is very large
This situation
Especially opportunities appearing in a large range are more significant
As shown in the picture
A trading signal appears within the K-line
Normally, if a signal appears at this position
There is already enough reason to enter a trade
But because the range we are drawing here is too large
Will make us a bit hesitant
Is this K-line pattern effective?
A too large area will leave us feeling confused
Even if clear signals appear
But there will be some unnecessary worries
Causing us to hesitate and miss opportunities
When this situation occurs
We can try to connect as many points of the body line as possible
Try to narrow this area down to a reasonable range
Also ensure to connect to at least three contacts
This will make the whole event much clearer
Large cycle charts are more accurate
Large cycle charts are more accurate
You may have heard about it
The larger the time frame, the more accurate
In fact, the logic in it is very clear
If something takes more time to brew, plan, and prepare
Its success rate is definitely higher than that in a very short time
Spontaneously occurring events will be much higher
When we look for key positions, it's all the same
Always start with larger time frames
Here
I share a trading skill I have developed over the years
This is also something a famous institutional trader once taught me
From the weekly chart
To the daily chart
Then go to the 4-hour chart
1-hour chart
Layer by layer down
To analyze each currency pair
Always start from larger time frames
Formulate the trading plan for the next week
When you know the market's big trend
Your chances of standing on the right side
Naturally, it will increase
If you belong to those with little trading experience
I suggest you start from larger time frames
For example, starting from the daily line or even the weekly line
First, establish your confidence in trading
Then slowly try smaller time frames
Take you to practice in the real market, finding major support and resistance levels
Finally, I have finished explaining the five conditions for defining key positions and the five application errors and secrets.
Everyone might feel that what I just said is somewhat subjective
It is difficult to have a clear, quantifiable condition to define
For example
What counts as a strong reaction?
How many rejections count as multiple? What constitutes validity?
If you also have this question
Congratulations! Your comprehension ability is excellent!
You are likely starting to absorb this concept and begin to digest it
This is also why I categorize this course as advanced technical analysis
Indeed
The matter of key positions is very subjective
Including all technical analysis of price action
Showing the same chart to different people
The results obtained may not be the same
So the only way is to backtest yourself
Practice more, observe charts more
Acting on impulse is not as good as taking action
Next
I will take you to look at a few examples
Immediately put what we just learned into practice
OK!
Before looking at chart examples
First, I need to teach everyone how to draw a key position
Step 1
We draw a line connecting the places that most candles touch
And this line will follow a principle: the body is more important than the wick
Why?
Because we need to focus on the price at the end of the K-line
That is the result
And the wick means previously
And not the result
Step 2
Draw another line above and below that previous line
The goal of these two lines is to touch the K-line as many times as possible
Whether it is the body or not
Whether it is the wick or not
Step 3
Remove the line in the middle
This way you will arrive at a preliminary key position area
If this area is too large
You can follow the secret I just mentioned
Adjust downwards according to the principle of connecting to the most contact times
Remember a principle
The body is more important than the wick!
If there is a conflict between the body and the wick
We will choose to sacrifice the wicks!
Next
We officially start looking at some chart examples
The first K-line chart
Can you guess where the key position is?
Does it also meet several conditions?
That's right!
It's here!
First, we draw a line
Try to let it touch more bodies
Then above and below it
Each draw an extra line
Form a draft
Finally
Let's make some slight adjustments
This area is the key position
Do you see that this position has some overstepping?
For us
In fact, it is acceptable
Because the market is usually not perfect
It has a very low probability of matching those drawn in some books
The exact same pattern happens
As long as that flaw is not too big
It will not affect its qualification as a key position
Finally
Let's see how many conditions this key position meets?
Very obvious
This position meets three conditions
Step 1
It must have at least three contacts
Step 2
We also see that the price has previously had a strong reaction
Step 3
It has also acted as both support and resistance
Good, let's seize the opportunity
Next, let's look at the second K-line chart
Let's try to find key positions together
Still use the same drawing method
Step 1
Draw a line
Try to connect all the bodies
Step 2
Draw another line above and below it
This way we find a preliminary key position
Step 3
Let's make some slight adjustments
This key position meets four conditions
First, it has more than three contacts
This second position is very obvious at a glance
The third one has had more than one strong reaction
The fourth, we analyze K-line patterns
See that the price has been rejected many times
Good
All good things come in threes!
Let's do the last set of exercises
This chart looks a bit difficult
If you see the price starting to stay in the lower half of this zone
Is that there is a bias towards selling, accumulating strength
Of course
Today's breakthrough may fail
Be careful of false breakouts!
Here’s a bit of advice for those who want to recover their capital or make money through contracts:
So many people lose money and stay in the crypto circle just to recover, but a harsh reality is that most people cannot recover and cannot make money. Especially for those who want to recover through contracts, they are even more delusional. Those who make money through contracts in the market are very few; it is rare. Don't fantasize about why you are not that person. Frankly, if you want to recover through contracts, you are not cut out for it. No matter how much you lose, it is the same. Even if you lose everything, it is impossible to recover through contracts. Therefore, I advise those who want to recover through contracts to quit contracts; in other words, quit gambling.
What should cash players do if they lose money?
First, if the loss is not much and the principal is still quite high, that is, if the principal and loss are balanced, then recovering is relatively simple and easy, or it is possible to recover within five times; the most important point is the entry point
And the exit point. If you are stuck at a high position, it becomes difficult. Most people can make money at the beginning of a bull market or during the main upward wave of a bull market; losing money happens when they do not know how to exit. After exiting, during the main distribution phase, repeatedly entering at high positions leads to being harvested. Therefore, for retail investors, deciding at what position to sell is crucial, but selling is not the most important.
Most importantly, after selling, you must persist in being flat. This is something most people cannot do; about 95% of retail traders cannot do it, which is fundamentally where most people lose money. If you can sell at a relatively high point and not be influenced by analysts in the market or various favorable news at high positions and insist on being flat, that is true profit-taking.
In summary, those who lose money
1. Recover within five times
2. You need to know how to sell
3. You should know how to be flat
Of course, the same applies to cash players; less than 5% of retail investors make money because the trading market is a struggle against human nature: greed, fear, arrogance; very few can overcome these.
So who are the ones that make money through trading?
Those who truly make money often only learn one strategy, can read the fundamentals, and when the market is in a bottoming phase, buy in and hold. When it rises to a certain level, they sell without paying too much attention to the news. For the coins they want to buy, they might not understand and buy blindly. However, during a bull market, any coin will rise.
In fact, especially many novices who trade in cash find it easier to make money.
In the crypto circle, let's first discuss two simple ways to make money:
The first type:
Making money through trading is actually so simple; you just need these three steps! Master them and easily multiply your account by ten times!
Step 1: Look at the trend first
Step 2: Find key positions again
Step 3: Find entry signals
Enter, profit, close, and leave
Isn't it simple?
Let's go into more detail below
Step 1: Look at the trend first
The state of the market
A major event generally leads to three outcomes: rising, sideways, or falling
What is a major event? Look at the 4-hour cycle chart or higher.
For example, the 4-hour, daily, weekly charts (my personal habit is to look at the 4-hour)
Go long on rises, short on declines, do not trade sideways
Step 2: Find key positions
Whether the market is rising or falling, it will jump like a bouncing ball, level by level from bottom to top or from top to bottom
What we need to do is enter at the jump-off point and exit at the next landing; how to find precise steps becomes the key
This is what we call key positions (main support and resistance levels)
(How to accurately find major support and resistance levels, you can refer to my previous articles)
Step 3: Find signals
Generally, if you find a market trend in a large cycle, you need to look for trading signals in a smaller cycle to enter
Everyone has different strengths in trading methods; mastering one or two is enough
More importantly, to quickly formulate a trading strategy
A complete trading strategy includes
(1) Target - What to trade;
(2) Position - How much to hold;
(3) Direction - Long or short;
(4) Entry point - At what level to trade;
(5) Stop loss - When to exit a losing trade;
(6) Take profit - When to exit a profitable trade;
(7) Countermeasures - How to respond to emergencies;
(8) Follow-up - Operations after the trade ends.
The famous TLS technical analysis method, trend + key position + signal = successful trade
Before each trade, develop a strategy according to the process. I believe you won't suffer too much loss
Form good habits, accumulate over time, and you will discover your shortcomings in the trading process. Strive to change them, and you will succeed!
Finally, let's say something heartfelt
And in the crypto circle, there is no guaranteed profit strategy, only a probability game. The principle of returning to confirm is essentially using rules to counteract human nature—being calm when others panic, and being restrained when others are excited.
Stay close to Wu Ge, use precise strategic analysis, and select from massive AI big data, making yourself invincible? The market never lacks opportunities; the question is whether you can seize them. By following experienced people and the right people, we can earn more!
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