1. High Sell Low Buy in a Fluctuating Market
In a fluctuating market, prices often fluctuate between support and resistance levels, providing us with excellent opportunities for high sell low buy. When mainstream currencies like BTC/ETH reach support levels (e.g., BTC 98,000 U), consider opening a long position; when they hit resistance levels (e.g., BTC 102,000 U), consider opening a short position, easily capturing a 3% fluctuation profit.
Key Points of Operation:
Leverage Control: To reduce risk, it is recommended to keep the leverage ratio at ≤5 times, ensuring that even if there is a certain reverse fluctuation in price, there are sufficient funds to bear the risk.
Position Management: Each time a position is opened, it should not be too heavy; reasonable allocation should be based on your own capital and risk tolerance, generally recommended not to exceed 20% of total funds.
Stop Loss and Take Profit: When opening a long position, the stop loss can be set just below the support level, such as 97,000 U, and the take profit set at the resistance level; when opening a short position, the stop loss can be set just above the resistance level, and the take profit set at the support level. Strictly execute discipline to avoid greed and fear affecting decisions.
2. Trend Following Method
When the daily moving averages of cryptocurrencies show a bullish arrangement (the 5-day moving average is above the 10-day moving average, and the 10-day moving average is above the 20-day moving average, etc.), it indicates that the market is in an uptrend. At this time, you can use 5 times leverage to go long, amplifying profits. Taking ETH as an example, when the price breaks through the key resistance level of 2600 U and the MACD indicator shows a golden cross, this is a strong bullish signal, and you can decisively enter the market.
Key Points of Operation:
Trend Confirmation: In addition to the moving averages showing a bullish arrangement and the MACD golden cross, you can also combine indicators such as trading volume and Bollinger Bands to comprehensively judge and ensure the effectiveness of the trend.
Stop Loss Setting: To prevent losses from trend reversals, the stop loss can be placed just below recent lows, such as 2550 U, which can control risk while allowing some space for price fluctuations.
Take Profit Target: Set a reasonable take profit target based on previous resistance levels or technical analysis, such as 2800 U. Timely take profit after reaching the target to lock in profits.
3. Event-Driven Blitz
Major news (such as interest rate hikes by the Federal Reserve, policy changes in various countries, etc.) often has a significant impact on the cryptocurrency market. Laying out positions before the news is announced can seize the opportunity. It is recommended to open reverse positions in advance based on market expectations before the news is announced (e.g., if the market expects a rate hike to be bearish, consider opening a long position), using 3 times leverage, and quickly close positions within 15 minutes after the news is released, entering and exiting quickly.
Key Points of Operation:
News Analysis: Pay attention to market hotspots and important events in advance, analyze the impact of the news on cryptocurrencies, and judge whether it is bullish or bearish, as well as the potential market reaction.
Position Control: Due to the high uncertainty of news, the leverage ratio should not be too high; 3 times is appropriate, and positions should also be kept at a low level to avoid significant losses due to news not meeting expectations.
Timely Closing: After the news is released, market sentiment may change rapidly, and price fluctuations may be intense. Be sure to close positions based on market reactions within 15 minutes and avoid being overly attached to the positions.
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