To make big money requires:
1. Buy Early
2. Buy More (Heavy Position)
3. Ability to Hold (Patience in Holding)
Seeing what others cannot see, thinking what others cannot think, and doing what others cannot do.
Here are a few simple examples of how to make money with Bitcoin:
In 2009, when no one had heard of Bitcoin, if you happened to learn about it and got in touch with it, your probability of making money would be much higher than others. This is seeing what others cannot see.
In 2015, many people started to know about Bitcoin and even invested in it; while you studied deeply and recognized the potential and value of this new narrative, others might have taken a 10% rebound and happily cashed out, while you might have seen returns in dozens of times. If you think of what others cannot, you will have a greater probability of making money than others.
After 2021, the crypto market matured, and many smart young people knew about it, realized its value, and entered the market to make money. At this time, to get rich with Bitcoin, you need a good strategy and the ability to align knowledge with action; those who can do this are rare and deserve to make money. This is achieving what others cannot.
For ordinary people, if you do not have the vision of a superman or extraordinary insight, then making money in investment ultimately comes down to a contest of effort, will, outlook, and patience; this is how you can maximize the blessings that good luck brings. If everyone could just leverage a little more to make money, who would still be there to run screws or deliver takeout?
What most people think is basically wrong; and what most people do is also basically wrong. If your framework, viewpoints, and emotions for thinking about issues all come from the 'majority,' do you think you will achieve returns and rewards that exceed those of the majority?
K-line combination strategy techniques, viewing the coin market through K-lines.
Market Insights June 4, 2023 16:10 Guangdong
Choosing a coin is the first step in trading and the most important one. Some prefer to choose coins based on technical analysis, while others prefer to choose based on fundamental analysis. Most retail traders choose short-term trading, so learning to pick a good coin for short-term trading is something many want to learn.
How to read and use moving averages?
1. When the moving average gradually flattens and slightly tilts upwards, and the coin price breaks above from below the moving average, it is a buy signal.
2. When the moving average gradually flattens from an upward trend, and the coin price breaks down from above the moving average, it indicates increasing selling pressure, signaling a sell.
3. When the coin price runs above the moving average, a pullback that falls back to the vicinity of the moving average and then rises again is an opportunity to buy again.
4. When the coin price runs below the moving average, a rebound that returns near the moving average and then falls again is an opportunity to short again.
5. After a series of large rises or falls, if the distance from the moving average increases, a divergence phenomenon may occur, which could lead to a reversal or consolidation trend.
6. After the coin price stabilizes and rebounds after a period of decline, when the short-term moving average crosses above the long-term moving average (e.g., 5 moving average crossing above the 10 moving average), it indicates a golden cross, which is a buy signal; when the coin price rises for a while and starts to consolidate, and the short-term moving average crosses below the long-term moving average (e.g., 5 moving average crossing below the 10 moving average), it indicates a death cross, which is a sell signal.
What commonly used moving averages are there?
1. Attack Line (5-day Moving Average)
The primary function of the attack line is to drive the price to form an aggressive stance in the short term, continuously guiding the price to rise or fall.
2. Operation Line (10-day Moving Average)
The main function of the operation line is to drive the price to continuously rise or fall during a medium-term wave.
3. Auxiliary Line (20-day Moving Average)
The main role of the auxiliary line is to assist the operation line, promoting and correcting the intensity and trend of price movements, stabilizing the direction of price trends.
4. Lifeline (30-day Moving Average)
The main role of the lifeline is to indicate the medium-term price trend.
5. Decision Line (60-day Moving Average)
The main role of the decision line is to indicate the medium-term reversal trend of prices, guiding the price's large wave-level movements within the established trend.
6. Trend Line (120-day Moving Average)
The main role of the trend line is also to indicate the medium to long-term reversal trend of prices, guiding or directing the price's large wave movements within the established trend.
Today, I mainly want to share with you the 13-day moving average strategy, which is much stronger than MACD.
The operation law of the 13-day moving average strategy is 'buy on the line, sell below the line,' meaning that when the market stabilizes above the 13-day moving average, one should enter the market. Everything else is just fantasy. In other words, the 13-day line is the starting line; until it breaks through, it is a rest period. After the 13-day line breaks through, the moving average moves upwards, and one can operate boldly. If the market falls below the 13-day line, one should clear positions and exit.
The important significance of the 13-day moving average in the trading market
The 13-day moving average means 'buy when the market's K-line successfully breaks above the 13-day moving average from below, sell when it effectively breaks below the 13-day moving average from above.' In actual operations, it is essential to observe the slope of the 13-day moving average. If the K-line successfully breaks above the daily moving average and the 13-day moving average subsequently turns upwards, this is a technical pattern for trend-following buying.
If the K-line effectively breaks below the 13-day moving average, and the 13-day moving average subsequently starts to turn downwards, this is a technical pattern for trend-following selling. Regardless of whether the trend formed by the 13 moving average in the weekly chart is long or the one in the 15-minute chart is short, both use the 13 moving average as the main reference for wave operations. However, the longer the cycle, the more stable it is, thus forming larger and more persistent trend movements.
For short-term investors, it is essential to observe not only the trend and slope of the 13 moving average in the 60-minute and 15-minute charts but also the trend and slope of the 13 moving average in the weekly and daily charts as well as the distinction between the K-lines of Yin and Yang. However, long-term trends determine short-term trends, and short-term trends can also alter long-term trends. Therefore, in actual operations, one should look long to do short, not only following the long-term trend but also tracking the short-term trend.
For ultra-short-term investors, the trend formed by the 13 moving average in the 30-minute chart has a certain degree of continuity. The trend formed by the 13 moving average in the 60-minute chart is even more actionable, but it must be combined with the MACD indicator and the 34 moving average to achieve more accurate results. When the 13 moving average is above the 34 moving average, as long as the MACD forms a golden cross and red bars start to emerge above the zero line, when the K-line breaks through the 13 moving average and retraces, closing above the 13 moving average, one can buy on dips. Then, as long as the 5 moving average successfully crosses above the 13 moving average, it enters an upward wave; when the 13 moving average is below the 34 moving average, as long as the MACD forms a death cross and green bars start to emerge below the zero line, when the K-line breaks below the 13 moving average and rebounds, closing below the 13 moving average, one can sell on rallies. Then, as long as the 5 moving average successfully crosses below the 13 moving average, it enters a downward wave.
The significance of the 13-day moving average lies in its cycle being neither too long nor too short, so it can genuinely reflect the closest trend of the K-line. In terms of cycle combinations, the 13-day moving average is considered a composite cycle, the 13-day moving average is the 'life line,' and it captures the wave operation at the daily level.
The 13-week moving average is the 'market lifeline,' and sometimes it represents the overall long-term trend of the market. Therefore, the 13-day moving average is applicable for both long-term and short-term investments.
However, in practice, it is essential to combine the golden crosses and death crosses of the MACD indicator to comprehensively judge the market trend; only in this way can the probability of success be increased.
In summary, the role of the 13-day moving average is a reliable experience derived from countless observations and practical validations; it is a law that can withstand repeated use, and as long as you understand and apply it skillfully, you can achieve the effect of 'one average.'
Let's look at the specific K-line combinations below:
Cloud Cover Combination
After a price increase appears, followed by a decrease, and that decrease causes the price to fall below half of the previous bullish candle's body. This combination often occurs after the market has risen for a while, even setting record highs, indicating a market reversal, which will then lead to a downward trend.
Island Combination
After a period of rising trends, a gap-down black candle appears, resembling an island. This combination, although the black candle's closing price is still higher than yesterday's, already reveals the weakness of the market participants' mentality and the trading methods of early profit-takers, indicating that the market outlook is not optimistic.
Inclusiveness Combination
The spaces between entities represent the dualities of Yin and Yang, but today's long entity completely encompasses yesterday's small entity, indicating that the market will develop in the direction of the long entity.
K-line Combination --- Dawn
K-line Combination --- Flat Bottom
Lastly, for short-term operations, maintaining a good optimistic mindset is essential, and one might even say it is one of the key factors for the success or failure of short-term trading. It is most important to stay rational, maintain a good mindset, and not blindly follow the crowd in trading cryptocurrencies or believe in unfounded news; success requires your own effort, climbing up step by step!$NXPC $BMT #币安HODLer空投HOME #X平台封号
