Making 100,000 yuan with 10,000 yuan in the cryptocurrency market is too easy; I can casually make a few trades that yield more than this profit!
If your account is below 1 million and you want to profit in the short term, there is indeed a timeless trading method in cryptocurrency trading, which is also the repeatedly effective 'MACD strategy.' Retail investors can easily apply it. Don't worry about whether you can learn it; I can seize this opportunity, and so can you. I am not a god, just an ordinary person. The only difference is that others have overlooked this method. If you can learn this method and take it seriously in subsequent trading, it can help you earn at least 3 to 10 percentage points more every day.
I share a set of my practical strategies with an average win rate of 80%, which is quite a rare achievement in the cryptocurrency trading world.
It can be said that I have used 80% of the methods and techniques in the market; the most practical in real combat — the MACD strategy — is one of the essential skills for short-term trading and swing trading, and it is also the simplest and most practical short-term trading method, which is also applicable in contracts.
A profit of 30%-50% in a month. It works every time!
Market Implications
I. Market Implications of Double Moving Averages
1. Position Implications
1. When the double lines are above the zero axis, it indicates a bullish trend, while below the zero axis indicates a bearish trend;
2. The crossover of double lines crossing above or below the zero axis serves as a basis for judging the current market trend.
2. Double Line Crossover
Signals of cross-death crosses appearing on smaller time frames are too frequent; it is best not to use them alone.
II. Market Implications of Volume Bars
Bull-Bear Divide: The zero axis serves as the bull-bear divide; above the zero axis leans bullish, below leans bearish;
2. Bullish Trend Following:
Volume bars on the zero axis transition from small to large, indicating a bullish trend; the market shows an upward trend;
3. Bullish Correction:
The volume bars on the zero axis gradually decrease from large to small, indicating a bullish pullback; the market shows an upward trend adjustment;
4. Bearish Trend Following:
Volume bars below the zero axis change from small to large, indicating a bearish trend; the market shows a downtrend;
5. Bearish Rebound:
Volume bars below the zero axis transition from large to small, indicating a bearish rebound; the market shows a downtrend adjustment.
Comprehensive Implications
1. Bull-Bear Equilibrium
Moving averages close to the zero axis, oscillating around it, and volume bars show scattered small distributions, the market is likely to show oscillations.
2. Divergence
Divergence is a signal of momentum exhaustion. Effective divergence means that both the double lines and the volume bars are diverging at the same time.
3. Trend Continuation
Trend up + volume bars always above the zero axis indicate a continuation of the upward trend; trend down + volume bars always below the zero axis indicate a continuation of the downward trend.
"MACD" Eight Major Entry Points
I. Chan Theory
First and Second Type Buying Points
First Type Buying Points
Trading Principles:
Bullish divergence + golden cross as a buying point;
Bearish divergence + death cross as a selling point.
Second Type Buying Point
Trading Principles:
The double lines first operate above the zero axis; #美股代币化
The first pullback brings the double lines near the zero axis;
Then a golden cross forms above the zero axis to buy in.
II. Trend Judgment Trading Method
Trading Principles:
Long-term trend judgment;
Short-term entry.
From weekly and daily analysis, the long-term trend is bullish, and the daily line has a short-term pullback. Our trading strategy is that if the daily line can only short during pullbacks, or wait for the daily line to show weakness before going long in line with the weekly line; #Strategy增持比特币
We can look for entry points on smaller time frames, such as 1 hour or 4 hours.
III. Volume Bar Position Trading Method Trading Principles:
1. Moving averages close to the zero axis oscillating around it;
2. Volume bars show scattered small distributions;
3. Enter when price breaks through simultaneously.
The MACD indicator's volume bars are shrinking, and the moving averages are wrapping around near the zero axis, indicating a state of balance between bulls and bears, consistent with K-line consolidation and oscillation, forming a pattern of energy accumulation.
Therefore, when the MACD indicator's volume bar shape aligns with classic K-line shapes, such as triangles or flags in a narrow consolidation trend, once the narrow oscillation pattern is broken, it often presents a good opportunity.
IV. Key Position Trading Method Trading Principles:
1. Key support and resistance levels;
2. K-line shows a piercing signal;
3. The volume bars transition from positive to negative, short selling; #币安Alpha上新
4. Volume bars transition from negative to positive, going long.
V. Secondary Red-Green Trading Method (Airborne Refueling Signal)
Trading Principles:
1. The volume of the first wave of upward bars should not be too large or too small, corresponding to the K-line price pattern; it is best to be in an attacking shape;
2. The first wave of positive volume bars gradually increases and then gradually decreases, but it does not drop into negative volume bars; instead, it forms a pattern of positive volume bars continuing to increase.
VI. Buddha Hand Upward
Trading Principles:
After the golden cross of the double lines, it rises along with the price of the commodity and then pulls back;
2. After the double lines return near the zero axis, the DIF line immediately turns upwards, forming an upward Buddha hand shape.
VII. Main Upward Wave Trading Method Downward Main Upward Wave Trading Principles:
1. The MACD volume bars remain above the zero axis, with prices showing a sustained upward trend;
2. The MACD volume bars first appear below the zero axis, with price pulling back in the 1st wave;
3. The volume of the 2nd wave is less than the volume of the 1st wave;
4. Enter a short position during the 2nd wave correction when the MACD volume bars shrink or amplify again for the 3rd wave.
The main upward wave is similar.
VIII. Divergence + Pattern Trading Method
Trading Principles:
MACD shows divergence;
Trend break.
Divergence does not mean reversal; it can also be a buildup of momentum. After divergence, there may be further divergence, so using divergence to exit or enter can easily lead to being misled.
However, we can use MACD + price trends to judge market turning points.
I will also share a set of strategies I summarized from my experiences (mindless rolling method): 300 times in 3 months, earning 30 million. If you also want to share in the cryptocurrency market, spend a few minutes to seriously read this article, and you will benefit for a lifetime!
Adjust Holdings
Let’s get straight to the most crucial step—how to achieve rolling positions by adjusting holdings.
1. Timing: Only enter when the market meets the conditions for rolling positions.
2. Open position: Follow the signals from technical analysis and find the right time to enter.
3. Increase position: If the market moves in your direction, gradually increase your position.
4. Reduce position: After achieving the predetermined profit, or when the market seems a bit off, slowly sell.
5. Closing position: When your target price is reached, or when the market clearly changes, sell everything.
Here's how I operate; let me share my experience with rolling positions:
(1) Increase your position after making a profit: If your investment increases, you may consider adding more, but the premise is that the cost has decreased and the risk has reduced. Do not add every time you make a profit, but at appropriate times, such as breakthrough points in a trend; if it breaks through, quickly reduce your position, or add when there is a pullback.
(2) Base Position + Trading T: Divide your assets into two parts, keeping one part untouched as the base position, while the other part is traded during market price fluctuations; this can reduce costs and increase profits. Specific allocations can be done in several ways:
1. Half-position rolling: Hold half of the funds long-term, while the other half is used for buying and selling during price fluctuations.
2. Thirty percent base position: Hold thirty percent of the funds long-term, while the remaining seventy percent is used for buying and selling during price fluctuations.
3. Seventy percent base position: Hold seventy percent of the funds long-term, while the remaining thirty percent is used for buying and selling during price fluctuations.
The purpose of this approach is to maintain a certain level of holdings while using short-term market fluctuations to adjust costs, optimizing the position.
Risk Management
Risk management is simply two things: total position control and fund allocation. Ensure that your total investment does not exceed the risk you can bear, and allocate funds wisely; do not put all your eggs in one basket. At the same time, always pay attention to market dynamics and technical indicator changes, and flexibly adjust strategies according to market conditions, timely stop loss, or adjust investment amounts when necessary.
Many people may feel both excited and afraid when they hear about rolling positions. They are eager to try but worried about the risks. In fact, the risk of the rolling position strategy itself is not high; the key lies in the use of leverage. If used reasonably, risks can be fully controlled.
For example, if I have 10,000 yuan in principal and open a position when a certain coin's price is 1,000 yuan, I use 10 times leverage but only use 10% of the total funds (i.e., 1,000 yuan) as margin. This means I am effectively using only 1x leverage. If I set a 2% stop-loss line, once the market goes against me, I only lose 2% of this 1,000 yuan, which is 200 yuan. Even in the worst-case scenario, when the liquidation condition is triggered, I only lose this 1,000 yuan, not all my funds. Those who get liquidated often do so because they used too high leverage or had too heavy a position; even a slight market fluctuation can trigger liquidation. However, using this method, even if the market is unfavorable, your losses are limited. Therefore, whether you use 20x leverage, 30x, or even 3x or 0.5x, the key is whether you can use leverage reasonably and control your position.
The above is the basic operation process of rolling positions. Interested friends can take a closer look and study it carefully. Of course, everyone's views may differ; I am only sharing my experience and do not intend to convince anyone.
How to grow small funds? Compound interest effect.
If you have a coin that doubles in value every day, after a month, its value will be astronomical. Doubling on the first day, then again on the second day, and continuing like this, the final number will be astonishing. This is the magic of compound interest. Even if you start with little capital, as long as you keep doubling, you can ultimately accumulate an impressive number.
For those who do not have much capital but want to enter the market, aim for big goals. Many people think that small funds should engage in frequent short-term trades for quick appreciation, but in reality, medium to long-term trading may be more suitable. Instead of focusing on making small daily profits, it is better to concentrate on achieving several times growth with each trade. What we want is exponential growth, a leap in multiples.
In position management, first, diversify risk; do not put all your funds into one trade. You can divide your funds into three to four parts, investing only one part each time. For example, if you have 40,000, divide it into four parts, using only 10,000 for each trade.
Use leverage moderately. The leverage for mainstream currencies should not exceed ten times, and for small tokens, it should not exceed four times.
Adjust dynamically. If you incur a loss, supplement it with an equivalent amount from outside; if you make a profit, withdraw some appropriately. Regardless, don’t let yourself fall into loss.
When your funds grow to a certain level, you can consider gradually increasing the amount for each trade, but do not increase too much at once; it should be gradual.
Through reasonable position management and a stable trading strategy, small funds can gradually achieve significant appreciation. The key is to patiently wait for the right opportunity and focus on the big goal of each trade, rather than daily small profits.
Having your own trading approach and forming a trading system helps you overcome human weaknesses. When the market comes, let the profits run, and when there are losses, let yourself stop out; this is fundamental to gaining great wealth. Finally, in the cryptocurrency market, only this type of person makes money, not based on what technology and methods are used, but on your self-discipline. Cryptocurrency trading is sometimes not a battle of strategies but a contest of time and patience.
No matter how diligent a fisherman is, he will not go out to fish during a storm but will carefully guard his fishing boat. This season will eventually pass, and sunny days will come! Follow Yan An, who teaches you how to fish and how to fish. The door to the cryptocurrency world is always open; only by moving with the trend can you have a life that flows with the trend. Keep this in mind!