Moving Averages + Candlestick Patterns: The Seven Deadly Techniques to Understand Trends and Secure Trading Points
In the ever-changing cryptocurrency market, precisely capturing trends is the key to profitability! The seven golden combinations of moving averages and candlestick patterns serve as a 'periscope' for the bull-bear game. Master these seven deadly techniques to accurately judge buying and selling opportunities in the wave of the crypto market!
1. Pressure Line ➖ Bearish Sniping Signal
When prices are continuously suppressed by downward moving averages, it's like being crushed by an invisible hand. At this point, the downward momentum is strong, and it is wiser to short. Unless the direction of the moving average reverses to form support, do not blindly catch the falling knife!
2. Support Line ➖ Bullish Charge Horn
When prices are closely aligned with moving averages and steadily rising, it is a typical bullish trend. Act decisively to go long; do not easily exit due to minor pullbacks. The 'support line' is a weapon that eliminates those lacking patience!
3. Side Line ➖ Patiently Wait for Opportunities
Candlesticks and moving averages intertwine repeatedly, and the direction is unclear. Entering the market at this time is likely to fall into the 'whipsaw trap.' Hold your hands and wait for the trend to clarify before acting!
4. Jump Line ➖ Beware of False Breakouts
When prices suddenly depart from the moving average and then quickly return, it may be a precursor to accelerated market movements or a trap for baiting buyers/sellers. Keep a close eye on the support or resistance of the moving average after the return, and avoid chasing highs or panicking on lows!
5. Breakaway Line ➖ Divergence Warning Mechanism
When prices significantly deviate from the moving average, a high divergence rate indicates excessive short-term fluctuations. Be cautious of pullbacks after excessive rises or sharp drops before planning your next move, and patiently wait for prices to return to the moving average!
6. Pullback ➖ Bullish Confirmation Buying Point
After prices break above the moving average, a retest of the moving average confirms the effectiveness of the support. An effective pullback is an excellent buying point; if there’s no pullback after the breakout, it may continue to rise, but a retest confirmation is more reliable!
7. Rebound ➖ Bearish Confirmation Selling Point
After prices break below the moving average, a rebound tests the strength of the moving average’s resistance. An effective rebound signals a decisive short; if no rebound occurs, be wary of the risk of accelerated market declines!
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