Seven Deadly Techniques of Moving Averages + Candlestick Patterns to Understand Trends and Secure Buy/Sell Points
In the ever-changing world of cryptocurrencies, accurately capturing trends is the key to profit! The seven golden combinations of moving averages and candlestick patterns are like a 'magnifying glass' for market dynamics. Master these seven deadly techniques to accurately determine buying and selling opportunities amid the waves of the crypto market!
1. Pressure Line ➖ Bearish Sniper Signal
When the price is continuously suppressed by the downward moving average, it feels like being 'pressed down' by an invisible hand. At this time, the downward momentum is strong, making it wiser to short the market. Unless the direction of the moving average reverses to form support, do not blindly attempt to catch the bottom!
2. Support Line ➖ Bullish Charge Signal
When the price closely follows the moving average upwards and steadily rises, it indicates a typical bullish trend. Act decisively to go long; don’t easily exit due to slight pullbacks. The 'support line' is a tool that eliminates those who lack patience!
3. Side Line ➖ Patiently Wait for Opportunities
When the candlestick and moving average are intertwined, the direction is unclear, making it easy to fall into a 'wash trap' when entering the market. Hold your hands, and wait for the trend to clarify before taking action!
4. Jump Line ➖ Beware of False Breakouts
When the price suddenly breaks away from the moving average and quickly returns, it may be a sign of accelerated market movement, or it could be a trap for baiting buyers/sellers. Keep a close eye on the support or resistance of the moving average after the return to avoid chasing highs and cutting lows!
5. Divergence Line ➖ Divergence Warning Mechanism
When the price significantly deviates from the moving average and the divergence rate is too high, it indicates excessive short-term fluctuations. Be cautious of a pullback after a rise, or a rebound after a drop, and patiently wait for the price to return to the moving average before making a layout!
6. Pullback ➖ Bullish Confirmation Buy Point
After the price breaks above the moving average, a pullback to confirm the effectiveness of the support is observed. A valid pullback is an excellent buying point; if there is no pullback after the breakout, although it may continue to rise, confirmation through a pullback is more prudent!
7. Retracement ➖ Bearish Confirmation Sell Point
When the price breaks below the moving average, it tests the strength of the moving average's resistance. A valid retracement calls for decisive shorting; if there is no retracement, be wary of the risk of accelerated market decline!
