Revealing a High Win Rate Strategy for Swing Contracts in the Cryptocurrency Market: A Senior Trader Focused on Contract Strategies for You
1. Trend is King, Follow the Trend
• Trend Judgement: Determine the overall market direction using trend lines and moving average systems. Trade only in accordance with the market trend: go long in an uptrend, go short in a downtrend.
• Key Support/Resistance Levels: Use tools like historical trading dense areas, Bollinger Bands, and chip distribution to locate support and resistance levels, providing a basis for buying and selling decisions.
• Volume-Price Synchronization: When the price breaks through key resistance levels, pay attention to whether the trading volume increases to confirm the validity of the breakout and avoid false breakouts.
2. Technical Indicator Combinations
• MA5/MA20 Moving Average Cross: Short-term moving average cross can be used to judge the short-term trend shift.
• MACD: Observe the contraction or expansion of the MACD histogram to capture potential reversal signals.
• RSI and KDJ: The RSI indicator can help judge overbought or oversold conditions; an RSI above 70 indicates the market is overbought, and it may be time to take profit; below 30 signals oversold, potentially a buying opportunity. Combine with KDJ golden cross/death cross to further validate signals.
• Bollinger Bands and ATR: When Bollinger Bands narrow, it indicates that the market may be approaching a turning point. Combine with ATR to set dynamic take profit and stop loss, adapting to market volatility.
3. Three Trading Iron Rules
• Stop Loss: Each loss should not exceed 3% of the principal; when the price breaks through key support levels, immediately close the position to avoid further losses.
• Dynamic Take Profit: Once profits exceed 15%, activate trailing stop loss, moving the breakeven point up with profits to ensure that profits are not given back.
• Position Control: Control positions in a single cryptocurrency to within 20%, and do not exceed 50% of total position when initially opening a position, ensuring that a single failed trade does not impact overall funds.
4. Three Key Factors in Target Selection
• Liquidity: Choose cryptocurrencies with a 24-hour trading volume exceeding $100 million to avoid slippage due to insufficient liquidity.
• Volatility: Select cryptocurrencies with a volatility rate greater than 8%; these typically have high volatility, suitable for swing trading.
