Having been in the digital currency field for more than a decade, I spent the first six years mired in debt, amounting to a staggering eight million. But the turning point came in the last four years, where through relentless effort and sharp vision, I transformed from financial distress to financial freedom.
As a seasoned participant in the cryptocurrency space, I have witnessed countless market changes, with traps and challenges testing my wisdom and courage.
During this journey, I have at times lost my way and tasted the bitterness of failure; I have also been elated by occasional victories, only to fall into deep disappointment in an instant. My inner feelings are like surging waves, mixed and hard to express. But time flies, and all storms will eventually pass.
Now, I can view the fluctuations of the cryptocurrency market with a calm and composed mindset, continuing to forge ahead on this road full of unknowns and possibilities.
If you are currently losing money, take a few minutes to seriously read this article!
Step 1: Choose the right cryptocurrency.
Open the daily chart and first check the MACD indicator. Only select cryptocurrencies with golden cross signals (the MACD line crosses above the signal line), especially those that show a golden cross above the zero axis; this type of signal has a higher success rate. In simple terms, this is the 'buy signal' provided by the market.
Step 2: Define buying and selling with moving averages.
Focus on a single moving average—the daily moving average (for example, the 20-day moving average). The rule is only two sentences:
Holding online: When the price is above the moving average, hold with confidence;
Sell immediately offline: once it breaks the moving average, liquidate immediately; don't hesitate.
This line is your 'safety belt'; if it breaks, stop loss. It's simple but effective.
Step 3: Position management.
1. Timing for increasing positions: If the price breaks through the moving average, and the trading volume also synchronously increases and stabilizes above the moving average, you can consider increasing your position.
2. Sell in batches:
Increase of 40%: first sell 1/3;
Increase of 80%: sell another 1/3;
Break the moving average: sell everything remaining.
This can lock in profits and also avoid being trapped.
Trading frequency and time planning.
Control trading frequency: When withdrawing funds, it is recommended to use a large amount and low-frequency trading method. Frequent small transactions may be mistakenly judged as money laundering, which can lead to account freezing and even legal disputes. It's better to complete a larger transaction at once to meet funding needs for a period, thus reducing regulatory risks.
Plan withdrawal timing: Timing for withdrawals is also crucial; it is recommended to do so during working days, for example, between 9 AM and 6 PM. Nighttime is a high-risk period for money laundering activities, so try to avoid withdrawing at that time. Choosing the right time for trading can effectively reduce the risk of being investigated.
The rules in the cryptocurrency space are constantly changing; only the fittest can survive for the long term.
The cryptocurrency market has evolved from the early ICO boom to the rise of DeFi, continuing to develop concepts like NFTs and Web3. Every change in trend is a major sifting process.
Those who survive in the cryptocurrency space are never the 'traditionalists' who cling to old paths, but those who continuously learn and adapt to new environments.
Luck may help you make quick money in certain trends, but only those who truly keep learning can survive and profit in the market in the long run.
Moving averages are the most commonly used trend indicators, fully known as the moving average indicator, abbreviated as MA. Simply put, it is a curve connecting average price points.
In the MT4 interface, investors can set different parameters for moving averages based on their needs. Different parameter settings change the meaning represented by the moving averages.
Commonly used moving average parameters are as follows:
Currently, moving averages are still the most widely used technical indicators today, favored by both novice traders and seasoned market players.
For experts, the use of moving averages is already second nature, but for many novice friends, they are still not very skilled in using moving averages; some even struggle to understand the principles and techniques, making it difficult for them to get started.
Today, I will introduce a 'foolproof' trading method using moving averages in the cryptocurrency space. Just remember the following common moving average patterns, their characteristics, meanings, and operational suggestions. I hope this can help you.
1. Bullish arrangement.
Main characteristics:
1. Appears during a rising trend.
2. Composed of short-term moving averages, medium-term moving averages, and long-term moving averages from top to bottom.
3. Three moving averages form an upward arc.
Technical meaning: Long signal, continue to be bullish.
Operational suggestion: In the early and mid-stages of a bullish arrangement, you can actively go long, but be cautious in the later stages.
2. Bearish arrangement.
Main characteristics:
1. Appears during a downward trend.
2. Composed of short, medium, and long-term moving averages from bottom to top.
3. Three moving averages form a downward arc.
Technical meaning: Short signal, continue to be bearish.
Operational suggestion: In the early and mid-stages of a bearish arrangement, focus on shorting; be cautious in the later stages.
3. Golden cross.
Main characteristics:
1. Appears at the beginning of an upward trend.
2. Composed of three short, medium, and long-term moving averages.
3. Short-term moving averages (fast line) cross above long-term moving averages (slow line).
Technical meaning: Bottom signal, bullish outlook for the future.
Operational suggestion:
1. After a significant decline, if this signal appears, you can actively go long.
2. Medium to long-term investors can buy when this signal appears on the weekly or monthly candlestick charts.
Main reminder: The greater the angle of intersection between the two lines, the stronger the upward signal.
4. Death cross.
Main characteristics:
1. Appears at the beginning of a downward trend.
2. Composed of three short, medium, and long-term moving averages.
3. Short-term moving averages cross over long-term moving averages (slow line) from above and below.
Technical meaning: Top signal, bearish outlook for the future.
Operational suggestion:
1. After a significant price increase, if this signal appears, you can actively short.
2. Medium to long-term investors can sell when this signal appears on the weekly or monthly candlestick charts.
Main reminder: The larger the angle of intersection between the two lines, the stronger the downward signal.
5. Silver valley.
Main characteristics:
1. Appears at the beginning of an upward trend.
2. Composed of three short, medium, and long-term moving averages that intersect in succession, forming an irregular triangle pointing upwards.
Technical meaning: Bottom signal, bullish outlook for the future.
Operational suggestion: Silver valley can generally serve as a buying point for aggressive investors.
6. Golden valley.
Main characteristics:
1. Appears after the silver valley.
2. The irregular triangular formation of the golden valley is the same as that of the silver valley.
3. The golden valley can be located close to the silver valley or even higher than it.
Technical meaning: Buy signal, bullish outlook for the future.
Operational suggestion: The golden valley can generally serve as a buying point for conservative investors.
Main reminder: The longer the gap between the golden valley and silver valley, and the higher its position, the greater the future potential for price increases.
7. Death valley.
Main characteristics:
1. Appears at the beginning of a downward trend.
2. Formed by the intersection of three moving averages, creating an irregular triangle pointing downwards.
Technical meaning: Top signal, bearish outlook for the future.
Operational suggestion: Upon seeing the top signal, actively short, especially if this pattern appears after a significant price increase, then be sure to stop loss and exit in a timely manner.
Main reminder: The sell signal is stronger than the death cross.
8. Initial bonding with upward divergence shape.
Main characteristics:
1. Can appear at the end of a sideways trend after a decrease, or at the end of a sideways trend after an increase.
2. Short, medium, and long-term moving averages diverge upward simultaneously like a jet.
3. Several moving averages previously converged before diverging.
Technical meaning: Buy signal, bullish outlook for the future.
Operational suggestion: Aggressive investors can buy at the initial point of upward divergence.
Main reminder:
1. The longer the bonding time, the greater the upward divergence.
2. When diverging upwards, if trading volume synchronously increases, the reliability of the signal becomes stronger.
9. Initial bonding with downward divergence shape.
Main characteristics:
1. Can appear at the end of a sideways trend after an increase, or at the end of a sideways trend after a decrease.
2. Short, medium, and long-term moving averages simultaneously diverge downward like a waterfall.
3. Several moving averages previously converged before diverging.
Technical meaning: Sell signal, bearish outlook for the future.
Operational suggestion: Whether you are an aggressive investor or a conservative investor, you should stop loss and exit in a timely manner upon seeing this signal.
Main reminder:
1. The longer the bonding time, the greater the downward divergence.
2. When diverging downwards, if trading volume synchronously increases, the outlook becomes more unfavorable.
10. Climbing up the hill shape.
Main characteristics:
1. Appears during a rising trend.
2. Short, medium, and long-term moving averages generally move upward along a certain slope.
Technical meaning: Long signal, bullish outlook for the future.
Operational suggestion: 1. You can actively go long as long as the exchange rate has not risen excessively; those with positions can hold for an increase.
Main reminder: The smaller the slope, the longer the rising time, the more momentum it has in the future.
11. Wave rising shape.
Main characteristics:
1. Appears during a rising trend.
2. During the upward movement of short and medium-term moving averages, multiple crossing phenomena occur, while the long-term moving average supports the short and medium-term moving averages upward with a diagonal line.
3. Wave after wave upwards, the wave pattern is very clear.
Technical meaning: Long signal, bullish outlook for the future.
Operational suggestion: As long as the exchange rate has not risen excessively, those with positions can hold out for an increase.
Main reminder: The more orderly the wave shape during an increase, the more reliable the signal.
I have introduced 11 classic moving average trading patterns at once; some friends may not be able to understand and remember them in a short time, but that's okay—just save them! You can refer to them when needed.
As a 00s college student, I want to share some 'unspoken rules' of trading cryptocurrencies from my few years of experience, so you can avoid ten years of detours!
First, do not declare a peak in a bull market or a bottom in a bear market.
The volatility in the cryptocurrency market far exceeds your imagination; you might think you've hit the peak, but it can still multiply several times; you might think you've hit the bottom, but it can still be halved. So, don't easily predict the market; going with the trend is the way to succeed!
Second, never go all in; diversify your investments.
The risks in the cryptocurrency market are extremely high; never put all your funds into one coin. Diversify your investments to reduce risk, so you can sleep soundly. Remember, as long as you keep the green mountains, you won't worry about firewood!
Third, the news aspect is very important, but don’t follow blindly.
There's a lot of news in the cryptocurrency space, and it's hard to distinguish between true and false. Don't rush into buying upon seeing good news, and don't panic when seeing bad news. Research the project's fundamentals extensively; rational judgment is key.
Fourth, always learn to take profits and stop losses.
Don't be greedy when you make money; take profits in a timely manner. Don't stubbornly hold onto losses; stop loss promptly. The cryptocurrency market is volatile; maintain a stable mindset, and don't let emotions dictate your actions.
Fifth, hold for the long term, and wait patiently.
The cryptocurrency market fluctuates dramatically in the short term, but in the long run, high-quality projects will always stand out. If you believe in a project, it’s worth holding patiently and waiting for the return over time.
Sixth, do not borrow to trade cryptocurrencies.
The risks in the cryptocurrency market are extremely high; borrowing to trade is akin to gambling. Once the market declines, you will face immense repayment pressure, and you could even face liquidation. Remember, invest only with spare money, and don't risk essential living expenses.
Seventh, keep learning and continuously improve.
The cryptocurrency market changes rapidly, with new technologies and projects emerging continuously. Only by constantly learning can one keep up with the market pace and seize new opportunities.
The cryptocurrency market is like life, a game of moving from 0 to 10, with every trade and failure being an accumulation of experience. As the saying goes, 'Live and learn'; only by recognizing your own shortcomings can you go further. I, Lao Chen, am willing to share the detours and experiences I have taken, hoping everyone can avoid some unnecessary detours!$RPL $KMNO $ANIME #看懂K线 #CPI数据来袭
Trading cryptocurrencies should only be done within your understanding! Have patience! Take profits when you see them! Never go in fully!
