After thinking for a long time, I decided to share my short-term trading skills which enabled me to start from 50,000 yuan in the cryptocurrency circle and make 53.98 million yuan in just two years!
If you are losing money now and want to take up cryptocurrency trading as a second career in the future, please read this carefully. You will definitely gain something. I recommend you to save it!
I went from huge losses to financial freedom, and now own a 2,000-square-meter villa, a Land Rover and a small Rolls-Royce in Shanghai!
I use my ten years of experience to tell you that if you don’t understand the “yin and yang (K-line)”, don’t enter the market! Otherwise, you will definitely lose money! (with illustrations)
If you continue to trade cryptocurrencies like this, it is possible to make a million.
1. Only do high-selling and low-buying of BTC/ETH
2. The short orders are mainly judged by the moving average group of important pressure above the 4H level. For example, the MA60 moving average above the 4H level continues to suppress the price, so this moving average is used as the time to enter the short order. Stop loss: It is placed at the previous high after the upward pin and then fell back. For example, the pressure level is 2440, and the pin reaches 2450, then the stop loss is placed above 2450.
3. Generally, the lower support of the same level or a higher level is used as the entry point for multiple orders in batches. Stop loss: It is placed at the previous low after the downward spike and subsequent pull-up. For example, if the support level is 2320 and the spike reaches 2310, then the stop loss is placed below 2310, around 2300.
4. Stop loss principal: 20% of the total principal. If it reaches 20%, no more orders will be opened on the same day. Single-day operations are generally based on two transactions, and the single stop loss is controlled at 10%. The position size of a single order should be consistent.
5. Try to enter the market in batches, don't fill up all the bullets at once! Try to follow the trend to open orders. When the main trend is short, try to open short orders, and vice versa.
① When the market trend is good, chase hot coins
②Control the profit and loss ratio to about 3:1
③ The daily stop loss retracement is 15%-20% of the principal. If it reaches this level, no more orders will be opened on that day.
④Daily review
6. Crashing market: Wait for the short position to enter the market in batches. If there is no opportunity, just wait for the short position. In this market, not losing money is equal to making money.
7. Win-win stop loss: When the order is opened on the same day and there is no stop loss and the K-line pattern of the same level is not broken, you don’t need to use the win-win stop loss pattern! If one of the two conditions is not met, you must use the win-win. ETH: Win-win after 20 points of floating profit BTC: Win-win after 350 points of floating profit
8. Moving Take Profit: ETH: Move the take profit after 35 points of floating profit, and use 3/5 minutes to move BTC: Move the take profit after 500 points of floating profit, and use 3/5 minutes to move
9. 1. Never think of making a fortune overnight. 2. Only trade in your own market! Learn to be short and don’t force orders. 3. Don’t make overnight orders. 4. Try not to make orders on weekends. 5. After being stopped out, you should control your mentality.
Playing around in the cryptocurrency circle is simply a contest between retail investors and bankers. If you don’t have cutting-edge news and first-hand information, you can only be harvested! If you want to make plans together and harvest the bankers together, you can come to me! [Official account: Apostle of Cong] Welcome like-minded people in the cryptocurrency circle to discuss together~
If we regard digital currency as a game, the players have different roles, including project owners, exchanges, miners, and countless investors. Everyone follows a certain consensus mechanism and "performs their respective duties" in the game ecosystem.
The Bible of Technical Traders: The Essence of Rockefeller Trading Method (Dry Goods Edition)
There are four situations in which a Rockwell Hawke structure (Rh structure for short) is formed:
1. After a low 1-2-3 structure is broken, the first candlestick that does not have a higher high point forms the Rh structure
2. After a high 1-2-3 structure is broken, the first candlestick that does not have a lower low point forms the Rh structure
3. Any horizontal running structure, including the pause structure (LG structure for short), the finishing structure (CG structure for short), and the oscillation structure (TR structure for short), is broken upwards. The first K-line that does not have a higher high point makes the Rh structure form.
4. Any horizontal running structure, including the pause structure (LG structure for short), the finishing structure (CG structure for short), and the oscillation structure (TR structure for short), is broken downwards. The first K-line that does not have a lower low point makes the Rh structure form.
The Rockhawk trading method is similar to naked K trading, without any complicated things mixed in. The market continues to form new Rockhawk structures in the process of continuing the upward trend:
Sometimes point 1 is hard to confirm, but points 2 and 3 are always easy to confirm. The reason why I like to trade the Rocky Hawk structure is that it represents the truth of the market. Breakout is the truth of the market. Once the price breaks through the Rocky Hawk point, it is a breakthrough. Even if the breakthrough is later proved to be a failure, the price has actually been broken, and usually the strong momentum accompanying the breakthrough gives me a chance to at least protect my capital.
Let me share with you a set of practical strategies that I have used over the years. The average winning rate is 80%, which is a rare achievement in the cryptocurrency trading community.
Indicators you must know when speculating in cryptocurrencies [The winning rate of Yin-Yang K-line exceeds 90%] Once you learn and master them, the crypto market will become your "cash machine"
If I could go back in time, I would go back to the time when I first entered the trading market.
I would like someone to remind me of the importance of the Yin-Yang line and tell me that this is the basis of trading.
Then I will not pursue a winning strategy and waste time pursuing the parameters of different technical indicators.
This way I won't take so many detours.
Want to make a profit in the market, especially in the cryptocurrency world
You may not know some very profound economic theories, you may not know how to interpret the indicators behind each economic data, and you may even ignore all technical indicators.
No need at all
But there is one thing you must understand thoroughly, and that is the Yin-Yang line (K line)
If you are new to trading, you may find the Yin-Yang lines very complicated and you may not understand what they are.
But don't worry, it's not as complicated as you think.
In this article, I will use a very simple and easy-to-understand method to help you understand this matter step by step from the shallow to the deep.
If you like this article, please give me a like at the bottom.
Your support is my motivation!
Nothing is more important than price on a chart.
The Yin-Yang line uses a graphic method to show the fluctuation of prices in a certain period of time, the results of the battle between bulls and bears, how the market thinks about the direction, which party has control, etc.
All of the above can be traced back to the Yin-Yang line. The Yin-Yang line is the threshold to technical analysis.
If we understand the meaning behind each yin-yang line, no matter which type of technical analysis you personally prefer, you can get twice the result with half the effort.
Next, I will lead you to interpret the Yin-Yang line in three levels (three levels)
First, I will break down the Yin-Yang line into 4 parts.
To interpret its surface information
Then I will summarize the Yin-Yang lines into 5 different levels of strength
To interpret the hints behind the Yin-Yang line
Finally, I will introduce you to the 4 most common yin-yang line patterns.
How to define them,
What they mean and how to use them
After reading this, you will understand how to use the Yin-Yang line to find a lot of information that can help you analyze the market.
At the same time, you will also understand why I say that the Yin-Yang line is the foundation of market profit.
Let’s get started!
Here I will teach you how to interpret the information that a yin-yang line brings to us on the surface.
When disassembling a yin-yang line
It can be divided into 4 key points
They are color, opening and closing high and low, body and shadow.
Before talking about the 4 key points, we must first know one thing
Each yin-yang line represents the fluctuation of price within a certain period of time.
If you use a one-minute chart
Each yin-yang line records the price fluctuation within this minute.
If you are using a daily chart
Each yin-yang line records the price fluctuation in the past 24 hours.
Color is our way of distinguishing whether this Yin-Yang line is a Yang line or a Yin line
Generally speaking, red represents a negative line.
Green represents Yang line
A positive candlestick means that the closing price is higher than the opening price within a certain period of time.
The Yin line is the opposite
When the Yin line ends
The closing price is lower than the opening price
So we can know one thing through the color of the yin-yang line
Is the temporary control of the market in the hands of buyers or sellers?
Next is the opening and closing high and low
I believe you have mastered these basic knowledge.
This is a simple matter
We use Yinxian and Yangxian as examples respectively.
The Yang lines from top to bottom are open high, close high, open low
Just like what I said before
His closing price is above his opening price
The Yin lines from top to bottom are high opening and low closing
The opposite of Yang line
Its closing price is lower than its opening price
Next, let’s talk about the physical line
The real body means the actual movement range of the price in a certain period of time.
Take the Yin-Yang line of a daily chart as an example
For example, its opening price this morning was 10 yuan.
After a day of repeated transactions
No matter if he has risen by 15 yuan
Or maybe it once dropped to 7 yuan.
This position will only record the price at the moment when the Yin-Yang line ends.
It's what it costs
Finally, the shadow line
The shadows represent the high and low prices that the price has reached
A lot of important information can be seen from the shadows
I personally think that shadow lines are a very important part of interpreting the market.
I'll keep it a secret here for now
In the last part I will use the candlestick patterns (K-line patterns)
Explain it to you in more detail
Next Steps
Let's start to dig a little deeper
If we use watching a movie as an analogy
When you finish watching a play
You know how the story develops.
After the film's apparent message to you
Would you like to think about this movie further?
It wants to convey a deeper meaning and message
Do you have some insights and personal interpretations?
If we apply this concept to the market
Each candlestick represents a story
This story has both long and short parts
The shortest one can be less than one minute
The longest one can be more than one month
What time chart are you using?
Every story has a beginning, a process and an end.
On the surface, the yin and yang lines of this daily chart tell you:
My opening price was 10 yuan, and within 24 hours, the highest price reached 18 yuan. The lowest price was 7 yuan, and my closing price was 13 yuan.
These are the plots of a story.
If we interpret and reflect on this story more deeply
You will find many surprises
And these findings can effectively help you interpret the market
Next we are about to enter the [Secrets behind the Yin-Yang Line]
I will use several examples in order of intensity.
Explain to you in more detail
The secrets behind different types of yin-yang lines
Here I will summarize the Yin-Yang lines into 5 levels of strength.
The first
The entity is very long
And there is almost no shadow line
It is the most powerful yin and yang form.
Entity represents one party with almost complete control
Take this Yang line as an example
Buyer is interested
And it has the ability to push the price up within a certain period of time
on the other hand
The shadow part is almost invisible
Represents the absence or opposite force is very weak
We see that the upward or downward forces are almost unimpeded.
It means that most market participants agree that the price is going in this direction.
The second
We see that this type of Yin-Yang line has a very long shadow
It used to be a big Yang or Yin line.
But I have been under strong pressure from the opposite direction.
The defending side showed great determination and strength
Finally, they successfully recovered the lost land
You still have control when the Yin-Yang line ends
Although its body is relatively short
But if we think deeper,
You will understand
The distance it travels is actually not shorter than the first type of yin-yang line.
This type of line is called a shooting star or hammer line.
We will look at some examples of charts in a moment.
OK
The third yin-yang line
This type of Yin-Yang line entity is actually not short
But there is one place that will greatly reduce our impression of it
This place is the shadow line
Let’s take the Yang line as an example
The price once rushed up to a high point
But it encountered the opposite force.
We see
This Yang line has a shadow at the top.
The shadow represents rejection
That is, the seller regains some of the lost ground.
Compared with the first two kinds of reluctance
We see hesitation and reservation here
The fourth
This type of yin and yang line
It is not only physically short
And each has a long lead on the top and bottom
It represents that both sides have launched offensives.
But both sides refused to give in.
Neither side has the power to break this impasse to a great extent.
The only way we can tell by color is that the buyer or seller still has a small amount of control
You may think that this type of K-line is very similar to the second one.
But because they end up in different places
So the whole meaning is completely different
Another major reason is that the shadows prove that the market has no clear direction for the time being.
We call this kind of yin-yang line a cross star
It could be a pause in the trend
Or the market is gathering strength to turn around.
Generally speaking, when the market is in a directionless situation
We shouldn't be in.
The fifth
Next is the weakest Yin-Yang line.
We have seen buyers or sellers attack upwards or downwards respectively.
Encountering strong resistance and rejection
Ended in failure
Once seemed to own the whole world
But unfortunately, the opponent counterattacked
And they are losing ground
At the end of the Yin-Yang line
I can only guard my last remaining territory.
The situation is quite dangerous
If you are trading with the trend at this time
That's a good thing to be careful about.
See here
I believe you already have a good understanding of the Yin-Yang line.
We finally come to the most important part
That is the third level [K-line pattern]
We have talked about the four parts that make up a yin-yang line.
And the meanings behind the 5 different types of strength Yin-Yang lines
Next, based on what we have just learned
Learn something quantifiable
Yin-Yang line patterns that can actually be used for trading
I will teach you the 4 most common Yin-Yang line patterns (K-line patterns) here
I will explain their definitions with diagram examples.
Formation principle and application method
They are
Hammer
Bullish Engulfing
Shooting Star
Bearish Engulfing
Hammer
Let’s start with the Hammer.
The hammer line is composed of a single Yin-Yang line.
There are three conditions
There is a very small or almost no upper shadow line.
The minimum length of the lower shadow should be 2~3 times the length of the body
The price must end above 25% of the entire Yin-Yang line
This form means:
When the Yin-Yang line begins
The sellers launched an offensive and moved downward for a distance
Then the buyers strike back
Even more powerful buyers
Until the Yin-Yang line is completely finished
Buyers successfully recovered most of their lost ground
And seized control
This form is a very favorable proof
Buyers begin to participate in the market
This is a favorable Yin-Yang line pattern.
Generally used for trend continuation and reversal
Here is a fallacy:
Many online tutorials say this is just a turning pattern.
Their description is a little bit incorrect.
Let's look at the following two examples
Example 1: Trend continuation
When we see an upward trend
Then a hammer pattern appeared during the pullback.
If we use price to define a trend in this example
This is higher.
This is relatively low.
We see an inverted hammer at a relative low.
Then we can expect the trend to continue
Make a new higher point
Example 2: Trend reversal
When a downward trend reaches a certain level
An inverted hammer pattern appears
Suggesting that buyer power is beginning to take control
Price starts a new trend
Bullish Engulfing
The second example is a bullish engulfing
The Bullish Engulfing is a bullish candlestick pattern consisting of two candlesticks.
We use three conditions to define
Does a bullish engulfing candle work?
They are
First: This pattern must be a Yin line followed by a Yang line
Second: The Yang line's body must completely cover the previous Yin line's body
You can ignore the shadow line here.
Third: The entity of the Yang line cannot be smaller than the entity of the Yin line
We define the candlestick with a small body as a cross star
Instead of bullish engulfing
This pattern means that when the price falls to a certain position
A stronger force in the opposite direction emerges
In addition to gaining control
The closing price is higher than the previous opening price
Proof that market sentiment has changed
This is a favorable Yin-Yang line pattern.
The same applies to trend continuation and reversal situations.
Let's look at the following two application examples
Example 1
Trend continuation scenario
When we see an upward trend
Then a bullish engulfing pattern appeared at the pullback position
This is a good sign
Proves that the short-term reverse pullback has ended
The buyer officially returns to take back the home court
Prices continue to rise
Example 2: Trend reversal
In a downward trend to a certain extent
A bullish breakout pattern is emerging
Buyers find an opportunity to enter the market
Even more powerful than the seller
Reversing the price
Shooting Star
Next, let's learn two bearish K-line patterns.
The shooting star is actually the same as the hammer line just now.
It's just a change of direction.
The Shooting Star is a bearish pattern formed by a single candlestick.
An effective shooting star
There are also three conditions
There is a very small or almost no lower shadow.
The upper shadow is at least 2~3 times the length of the body
The price must end below 25% of the entire candlestick.
The name of the shooting star pattern
In fact, it has reflected its meaning
Shooting arrows into the sky
I've been to a very high point.
Stop when exhausted
Slowly falling back
Forming a long shadow
This pattern also applies to trend continuation and reversal situations.
You can refer to the example of the hammer line just now.
Turn all the shapes around and apply them to the shooting star.
I won’t repeat the example
#BTCPrediction #SpotVSFuturesStrategy #OneBigBeautifulBill
