In 2015, I entered the crypto space with all my savings of $50,000, just like you now dreaming of getting rich every day. In the bull market, altcoins were flying everywhere; I was fully invested in various meme coins and junk chains, and my account peaked at $150,000. I stared at my phone every day, foolishly smiling, thinking I was a genius trader. However, when the bear market hit in 2018, the coins in my hands depreciated like crazy, dropping 30% in a day and halving in a week, leaving me with only $10,000.
After two years of silently studying white papers, I made some money from a few opportunities, and then in 2020, the DeFi boom finally gave me a big opportunity. I split $10,000 into several decentralized exchanges at the bottom, and when it rose, I didn’t get greedy and decisively took profits at $1 million. This wave taught me that the market is only for those who are prepared.
In a blink, in 2021 during the NFT frenzy, I first took a 20% position to try the monkey avatars and made a small profit. Later, I set my sights on Axie Infinity, and with its economic model, I went all in, and within three months my account reached $5 million. In 2022, I began dollar-cost averaging into Bitcoin and Ethereum while also swing trading, and now my holdings have steadily risen to $20 million.
Today I want to share a set of the 5 most effective swing trading practical tips! These are also experiences I have summarized over the years. For example, if you buy at support, then you want to exit before resistance forms, as the selling pressure above may eat into your profits. Here is an example:


Swing trading can be applied in most time frames, but generally, using 1-hour or higher time frames is more suitable. Now let me share some tips regarding swing trading that I hope will be helpful for your trading. 1: The best market conditions for swing traders are those that could be favorable for you. An ideal market meets two conditions:
Good trend
Weak trend
Good trend
When the market follows the 50-period moving average and stays above it, it can be said that the market is in a good trend.
But why is a good trend suitable for swing trading?
First, you trade through trend trading, which raises your win rate. Next, you can easily identify the market's 'ebb and flow' (prices rise, then retrace, then rise again...).
Therefore, as a swing trader, you want to buy when the market retraces to the 50-period moving average and sell before reaching the previous swing high.
Moreover, the distance from the 50-period moving average to the swing high is your potential profit, typically presenting a risk-return ratio of 1:1 or even higher.
Let's look at the example below:
Weak trend
Now, another very suitable market condition for swing traders is a weak trend.
In these market conditions, the market is still in a bullish trend, but the pullback is much larger and tends to follow the 200-period moving average or support.
Look at the following example:
Now, the method of trading in a weak trend is the same as that in a good trend — you want to buy in a value area after a month and then sell before reverse pressure intervenes.
#2: Don't stray away from the value area; trade near it.
As mentioned above, good trends and weak trends are the most favorable times for swing trading. However, you should not blindly enter the market just because it is in an upward trend.
Why?
Because you do not have a reasonable position for stop-loss settings.
Let’s look at the following chart example:
As seen in the above chart, the market is in a good upward trend and is approaching the swing high.
If you enter now, where would you place your stop-loss? You will realize that there is no reasonable place to set a stop-loss until at least below the 50-period moving average.
Of course, if you have to do so, this trade will provide you with poor risk-reward.
This is what I mean...
So, what’s a good solution?
It's actually quite simple — trade near the value area, do not stray away from it.
Therefore, if your value area is at the 50-period moving average, let the price get closer to it before establishing a long position.
Expert tip: Your value area can be support/resistance levels, trend lines, channels, etc.; this concept still applies.
3: Price rebound is the entry time.
Once the price enters a valuable area, what should be done next?
You should look for price rejection — it indicates that bulls are temporarily in control (and may push prices higher).
On the chart, price rebounds can manifest in the form of reversal candlestick patterns, such as hammer patterns, shooting stars, engulfing patterns, etc.
But the key is, the price must 'quickly leave' the value area.
Here is an example:

Have you noticed how quickly the price leaves the value area? Candlestick patterns are not the only way to identify price rebounds, as they can also appear in the following manner:
Remember, the key in the chart is for the price to 'quickly leave' the value area, not the candlestick pattern. Reversal candlestick patterns can help you define price rebounds, but they are not the only method.
Expert tip: Not all swing trading strategies require 'confirmation' or price rebounds to determine your entry timing.
#4: How to avoid being stopped out too early.
How should you handle it:
Wait for ideal market conditions.
Trade in the value area.
Wait for an effective entry signal to trigger.
However, if you set your stop-loss at a lower level, you will exit too early (even before the market has a chance to move in your favor). Therefore, do not set stop-losses based on some random level.
On the contrary, utilizing the value area will greatly benefit you, and set the stop-loss above that area.
In this way, the market must 'do its best' to reach your stop-loss, providing more breathing space for your trade and better exercise opportunities.
For long-term trading, how to do this:
1. Determine the current Average True Range (ATR) value.
2. Determine the lowest price in your value area.
3. Take the lowest price and subtract the current ATR value — that’s your stop-loss level.
See the example below:
This concept can be applied in any valuable area, such as support/resistance, trend lines, and channels.
#5: Set a reasonable target to pocket profits.
Every time I hear traders comment, I laugh: 'If you want to be a profitable trader, you must have at least a 1:2 risk-reward ratio.'
Now let me ask you: What’s special about a 1:2 risk-reward ratio? Why not 1:10? Or even 1:100?
So this is the truth...
The market does not care about your risk-reward ratio — it goes where it wants.
The only thing you can do is observe what the market has done before and use that as a clue; it may do so again in the future.
For example:
If the market previously crashed at the $100 price, then when approaching $100 again, there may be selling pressure at that level.
As a swing trader, you do not want to set targets at $105, $100, or $110, as these levels might not be reached due to selling pressure.
Instead, you want to exit the trade before $100 (around $99), that is, before reverse pressure intervenes.
This means if you are trading long, you need to exit at the following time:
Swing high
Resistance level
Downtrend line
(Short-term trading is the opposite.)
This is an example of exiting a trade before several resistance levels are reached:
From the above image, do you think it makes sense?
Additional advice #1: Lock in half your profits, let the other half follow the trend.
As a swing trader, you often have to give up the opportunity to catch trends. But what if I told you there is a way to capture volatility while also trading with the trend?
Let me introduce you to a method: Scale half ride half (lock in half profits, let half follow the trend).
This is the logical thinking behind it...
You close half of your position before reverse pressure intervenes. For the remaining half, you can use a trailing stop to follow the trend.
The chart below is an example:
The benefit of this is that you can capture price fluctuations for corresponding profits while being able to follow the trend to further increase profits.
However, if the trend has not played out yet, the price may return to your entry point, or worse, trigger your stop-loss.
Additional tip #2: Understand the characteristics of the currency pairs you are trading.
Not all currency pairs are the same. Some exhibit trending behavior, while others exhibit mean-reverting behavior.
Now you might wonder: 'How do I know if a currency pair exhibits trending or mean-reverting behavior?'
You can run backtests to find out the results for any currency pair...
1. Go long if the price breaks above the previous day's high.
2. If the price breaks below the previous day's low, exit the long position and go short.
3. If the price breaks below the previous day's low, exit the long position and go short.
It is evident that when you run this 'trend-following' backtest, currency pairs with trending behavior should, in the long run, make money.
Additionally, currency pairs with mean-reverting behavior should, in the long run, lose money.
Trending currency pairs
For currency pairs with trending behavior, as the market continues to move towards the breakout direction, this backtest will yield positive outcomes.
Below is the GBP/JPY example:
Mean-reverting currency pairs
For currency pairs with mean-reverting behavior, this backtest will yield negative results, as there is a lack of trending behavior whenever the price breaks the previous day's high/low.
Below is the AUD/CAD chart:
Here comes the question: "How do you benefit from this knowledge?"
It's simple. If you know which currency pairs exhibit mean-reverting behavior, you can use this 'natural behavior' to determine your entry and exit times.
For example:
You know that the AUD/CAD tends to reverse at the previous day's high/low.
Therefore, if you're in a long position, you can exit the trade at the previous day's high (because the currency pair often reverses at the previous day's high).
Or, if you wish to short the AUD/CAD, the previous day's high is a possible consideration level, as it often reverses at the previous day's high.#美国加征关税
Conclusion
So, here are the swing trading techniques you learned:
The best market conditions for swing trading are in healthy trends and weak trends.
Trade near the value area, so you can buy low and sell high (do not stray away from it to trade).
You can use candlestick reversal patterns, such as hammers, engulfing patterns, etc., to determine your entry timing.
Set your stop-loss at a position 1 ATR away from the value area, so your trade has more breathing space and avoids being stopped out too early.
You can set profit targets before directional pressure intervenes (if you are trading long, you can exit before resistance levels, swing highs, etc.).
You can exit half of your position before reverse pressure intervenes and use a trailing stop on the remaining position to follow the trend.
For mean-reverting currency pairs like AUD/CAD, you might consider taking profits at the previous day's high/low.
Lastly, let me share the top 10 rules I have summarized over the past 10 years: Understanding the way is earning money!
1. A sharp drop in the morning often presents a buying opportunity. The change in market sentiment is particularly pronounced in the morning; if there is a drop at the opening, it usually indicates that investors can find some undervalued investment opportunities to buy at a lower price. Conversely, if the market shows an upward trend in the morning, it is often a good time to sell, as this rise may just be a temporary phenomenon. Remember, these fluctuations in market sentiment actually provide us with many short-term trading opportunities. The key is to learn to think contrarily, to be bold when others are fearful and to be fearful when others are greedy, thus effectively seizing these fleeting opportunities.#币安Alpha上新
2. Afternoon Wisdom: If the market suddenly surges in the afternoon, do not rush to chase the price, as the risks are also gradually accumulating, and blindly following the trend can lead to unnecessary losses. Conversely, if the market experiences a significant drop in the afternoon, the next day may become a good opportunity to buy at a low price, as in the general panic, many quality assets’ valuations tend to become relatively low, making it the right time to pick up bargains.
3. Steady mindset: When the market experiences a significant drop, remember not to panic, stay calm, and avoid making impulsive decisions due to emotional fluctuations, such as blindly selling assets to cut losses. The correct approach is to remain patient, observe changes, and wait for signs of a market rebound before making a decision. Similarly, when the market is in a sideways consolidation phase, where there is neither a clear upward nor significant downward movement, do not rush to enter the market. At this time, the wisest choice is to patiently wait until the market trend clarifies and forms a clear direction, effectively avoiding the potential risks of blindly following trends.
4. Trading principle: Do not sell lightly without clear upward signals; similarly, do not rush to buy when there are no obvious downward signals. During sideways consolidation phases, patiently wait for the trend to clarify before acting.
5. Counter-trading: Remember this saying: Buy the dip, not the rise; sell the rise, not the dip. True experts buy when the market is fearful and sell when the market is greedy. Counter-trading is the way to stand firm in the market and laugh last.
6. Consolidation waiting: When the market is consolidating at high levels, do not hastily sell; wait for a spike before considering exiting. Conversely, when consolidating at low levels and making new lows, consider buying with full allocation. The market may rebound amid pessimism, and seizing such opportunities can often yield good returns.#BTC重返11万
By following these basic principles, investors can gain a deeper understanding of market volatility, thus accurately seizing the best timing for buying and selling, steadily advancing in a complex and ever-changing market environment.
Please remember, investing is not just a game of numbers and data; it requires a deep understanding of human nature and market psychology. Only by maintaining a calm mindset, being fully prepared, and making prudent decisions can one stand out amid the volatility of the cryptocurrency market and achieve investment goals.
Even the most diligent fisherman wouldn’t go out to sea to fish in a storm, but would instead carefully guard his boat, for this season will pass, and a sunny day will surely come! Follow the trends, learn both fishing and how to fish, the door to the crypto world is always open, and going with the flow is the only way to lead a successful life; remember this deeply!