The cryptocurrency market surged from 50,000 to 5.5 million, all thanks to remembering these 7 phrases!
1. Focus on Bitcoin When Bitcoin moves, pay attention to altcoins and major cryptocurrencies right away; opportunities are often just behind!
2. Trading volume is key When trading volume is small, buy in increments; when trading volume expands at low levels, buy in fully; when trading volume expands at high levels, sell fully.
3. Buy on pullbacks with low volume, sell on high volume You can buy during pullbacks when volume is low, but sell when volume is high. Increased volume during a pullback usually indicates that the main players are offloading.
4. RSI and KDJ indicators Buy when the RSI hovers at a low level for three times; sell when it hovers at a high level for three times. Be bold and buy when RSI is below 10; sell quickly when it is above 85. If the price hits a new high but RSI does not, definitely sell. Additionally, the KDJ indicator can also be referenced. For short-term trading, the W%R indicator is crucial and should be studied carefully; for long-term trading, pay more attention to the TRIX indicator.
5. Don't get tangled up in Bitcoin vs. altcoins There are only mainstream and altcoins, only major players and retail investors; don't be deceived by 'mainstream' or 'altcoins'; the key is to observe trends and capital flows.
6. Moving average crossover trading method When moving averages cross upwards, it's time to buy; when they cross downwards, sell quickly. If both the 5-day and 10-day moving averages are rising and the price is above these two averages, buy with confidence, but don’t rush to sell as long as the price doesn’t drop below the 10-day moving average. If it does break below the 10-day line, wait to sell when the 5-day moving average turns down. The 10-day moving average is very important for those who manipulate the market, as it is roughly their cost price, so they generally won’t let the price fall below this line.
7. The strong get stronger, the weak get weaker Sometimes chasing rises and cutting losses can be quite useful. In the cryptocurrency market, the strong get stronger, and the weak get weaker. Timing is crucial when trading; don’t be stubborn and compete with yourself. Let me share some short-term trading tips:
1️⃣ Don’t sell if the price doesn’t spike, don’t buy if it plunges, and don’t trade during consolidation.
2️⃣ Buy when the candlestick closes bearish, sell when the candlestick closes bullish.
3️⃣ After consolidation, there will be a trend change; clear positions when shifting down from a high, chase in when shifting up from a low.
