When I first started trading cryptocurrencies, I made about 4 million with an initial capital of 50,000. I never worked after graduating from college.
I have been playing in Kunming and Dali, not buying a house or a car. Monthly expenses are 3,500.
How I made money:
1. Initial capital of 50,000, doing projects in college, affiliate marketing, completing tasks, delivery services, app gigs, various small tasks, accumulated 50,000.
2. Entering the cryptocurrency circle, I think BTC is too expensive, so I kept playing with ETH+, which has leverage+, and then there are altcoin spot trades. Choose coins and manage positions well. Just stick to simple strategies; if the market is bad, you might lose a little, but when the market comes, you earn a lot.
Why enter the circle.
If you want to change your fate, you must try the cryptocurrency circle. If you can't get rich in this circle, ordinary people will never have a chance in their lifetime.
I will share my cryptocurrency trading ideas with you:
Everyone has different psychological expectations in the cryptocurrency circle, and it is very important to plan limited funds reasonably, especially when we buy coins!!! If you have two equal amounts of capital, one buys BTC with a profit of 30%, and the other buys ETH with a floating loss of 30%.
If you were to operate, what would you do? (The always wrong choice)
A. Hold both.
B. Sell BTC to buy ETH.
C. Sell ETH to buy BTC.
D. Liquidate both.
According to probability theory, 80% of normal people will choose to sell Bitcoin to buy Ethereum.
They feel that Bitcoin has risen too much and are afraid; locking in profits makes them feel secure. Ethereum, as it falls, presents lower risk, and they fantasize that if they sell BTC to rescue ETH, both could make money.
In fact, there is a frightening phenomenon in the investment market where the strong get stronger and the weak get weaker: most people find that selling BTC will continue to rise, while the trapped ETH will continue to fall. If they find that it is better to hold on without selling, at least one is profitable.
Relative to B. Selling BTC to buy ETH, and C. Selling ETH to buy BTC seems extremely counterintuitive, making most people feel uncomfortable! In fact, this outcome is often the best; this 'always wrong choice' is a paradox that 80% of investors will encounter. In terms of overall scores, the returns are C > A > D > B.
If you encounter two coins next time with a situation of mutual rise and fall, be brave, be decisive, and try to operate against your instinct for safety; the more unreliable it seems, the more you should try.
Remember, investing is always counterintuitive, and you must go against the majority.
Simple and practical trading tips to ensure steady profits.
1. Invest in batches: Assume you have 10,000, divide it into five parts, and use only 2,000 for each trade.
2. Test the waters: Initially invest 2,000 to buy a coin and test the waters.
3. Add to the position when the price drops: If the price drops by 10%, add another 2,000 to the position.
4. Take profits when the price rises: If the price of the coin rises by 10%, sell a portion promptly to lock in profits.
5. Repeat cycle: Continuously buy and sell until funds run out or coins are sold out.
Strategy advantage: The benefit of this strategy is that you can calmly cope even if the price drops. By investing in batches, you avoid the risk of a one-time investment. Even if the price drops by half, you are just incrementally increasing your position. And each time you sell, you can lock in a 10% profit. For example, if you have 100,000 and invest 20,000 each time, you can earn 2,000 each time.
The narrow-range candlestick strategy is a simple breakout strategy, entering long positions at predefined highs and short positions at predefined lows. These predefined levels are usually the highs and lows of the narrow-range candlestick formations.
The greatest benefit of this strategy lies in its simplicity. Although the execution of narrow-range candlestick breakouts is simple, they remain highly effective formations when traded correctly.
The three main variants of the narrow-range candlestick breakout strategy are NR4 breakout, which is a breakout from the narrowest candlestick over the last four days. The second variant is the NR4/ID setup, which involves a breakout from the narrowest range candlestick over the last four days, which is also an inside day candlestick.
The last variant of this strategy is the NR7 breakout, which is essentially the same as the NR4 breakout, but in the case of NR7, we will look for a breakout from the narrowest range candlestick over the last seven days.
I will take a more detailed look at three different variants on the price chart and discuss a method for filtering and trading these narrow-range candlestick setups.
Trading NR4 candlesticks.
The narrow-range 4 (NR4 candlestick) is the narrowest candlestick over the last four trading days. Thus, the NR4 formation consists of a total of four candlesticks. The range of the fourth candlestick or the last candlestick will be less than the range of each of the previous three candlesticks. Let's take a look at how the NR4 formation appears on the price chart.
In the chart above, you can see the price action of the last four candlesticks marked on the chart. If you observe closely, you can see that the last candlestick, which is the fourth candlestick, has a range smaller than the previous three (candlesticks 1 to 3). Therefore, the fourth candlestick forms the NR4 candlestick and validates this formation.
The process of identifying NR4 setups is quite simple. First, you need to check the high and low data of each of the last four candlesticks. This will allow you to calculate the high-low range of each candlestick.
Then, you will compare today’s range with the range of each of the previous three candlesticks. If you find that today’s range is smaller than the range of each of the previous three candlesticks, then this formation can be marked as an NR4 structure.
With today's computing technology, writing scripts and automating this process is quite easy. Alternatively, you can access some free pre-programmed narrow-range indicators to perform this task.
In any case, once you identify the NR4 formation on the price chart, you can take the next step to further evaluate and consider trading that setup. At the most basic level, when the price breaks above the high of the NR4 candlestick, a signal to enter a long trade appears. Conversely, when the price breaks below the low of the NR4 candlestick, a signal to enter a short trade appears.
NR4 candlestick trading example.
We will create a simple strategy to trade NR4 setups. The rules are as follows:
NR4 candlestick setup rules – (using daily chart timeframe).
Long NR4 trading setup rules.
● The candlestick after the NR4 candlestick must break above the high of the NR4 candlestick.
● At the time of the breakout, the price must be above the 89-period simple moving average.
● The buying price is 1 point above the high of the NR4 candlestick.
● The stop-loss is set 1 point below the low of the NR4 candlestick.
● Exit the trade after the close of the third candlestick following the breakout candlestick.
Short NR4 trading setup rules
● The candlestick following the NR4 candlestick must break below the low of the NR4 candlestick.
● At the time of the breakout, the price must be below the 89-period simple moving average.
● Sell 1 point below the low of the NR4 candlestick.
● The stop-loss is set 1 point above the high of the NR4 candlestick.
● Exit the trade after the close of the third candlestick following the breakout candlestick.
Now that we have the rules for trading NR4 setups, let’s look at the price chart and apply this strategy. The chart below is the daily chart of the GBP/USD currency pair. You can see five arrows pointing to specific blue candlesticks. These blue candlesticks represent NR4 candlesticks. The light blue line marked on the chart is the 89-period simple moving average.
Now, let's analyze the five NR4 trading signals that occurred on this price chart. Starting from the left, the first signal occurs when the price breaks below the NR4 candlestick. We will exit the position on the third candlestick following the breakout candlestick, resulting in a profitable trade.
The second signal occurs soon after the price breaks above the 89-period simple moving average. Here, we will wait for a breakout above the high of the NR4 candlestick. We can see this occurs on the following candlestick, which is our signal to go long. We will exit the position on the third candlestick following the breakout candlestick. This will occur when the shooting star formation that forms the swing high occurs.
The third NR4 trading signal occurs after a brief pullback. Note that the candlestick following this NR4 breaks above its high and closes near the top of its range. The stop-loss will be set at the low of the NR4 candlestick, which is never threatened. The exit is triggered on the third day after the breakout candlestick, which occurs on the day when that candlestick itself is an NR4 candle. This is shown on the chart by the fourth arrow.
The last NR4 trading setup occurs when the price is far above the 89-period simple moving average. You can see that the price breaks above the high of this NR4 candlestick and continues to rise in the following days. The closing price of the last candlestick on the chart represents the exit point.
Trading NR4/ID candlesticks.
The structure of the NR4/ID candlestick is similar to that of the NR4 candlestick, but with the added condition that the last candlestick (the fourth candlestick) must also be an inside bar. An inside bar refers to a candlestick whose high and low range is contained within the range of the previous candlestick. Thus, when the high and low range of the fourth candlestick in the NR4 candlestick is contained within the range of the third candlestick in the structure, this narrow inside bar setup occurs.
Here are examples of the NR4/ID candlestick formation:
As shown in the figure, the range of the fourth candlestick is smaller than the range of each of the previous three candlesticks (candlesticks 1-3). Therefore, the fourth candlestick is considered an NR4 candlestick. Additionally, the fourth candlestick is also contained within the range of the third candlestick. More specifically, the high of the fourth candlestick is lower than the high of the third candlestick, and the low of the fourth candlestick is higher than the low of the third candlestick. Therefore, we can say that the fourth candlestick is an inside bar formation. Thus, this structure is both an NR4 candlestick and an inside bar, making it an NR4/ID candlestick structure.
The process of identifying the NR4/ID candlestick structure is similar to that of identifying the NR4 candlestick structure but adds a significant condition. The condition is that the fourth candlestick must also be an inside bar.
The basic signal for entering a long trade in the NR4/ID setup is when the price breaks above the high of the NR4/ID candlestick. Conversely, the signal for entering a short trade is when the price breaks below the low of the NR4/ID candlestick.
NR4/ID candlestick trading example.
Here are the simple rules for trading NR4/ID candlestick setups:
NR4/ID candlestick setup rules – (using daily chart timeframe).
Long NR4 trading setup rules.
● The candlestick following the NR4/ID candlestick must break above the high of the NR4/ID candlestick.
● At the time of the breakout, the price must be above the 89-period simple moving average.
● Buy 1 point above the high of the NR4/ID candlestick.
● The stop-loss is set 1 point below the low of the outside bar (this is the candlestick immediately before the NR4/ID candlestick).
● Exit the trade after the close of the sixth candlestick following the breakout candlestick.
Short NR4/ID trading setup rules.
● The candlestick following the NR4/ID candlestick must break below the low of the NR4/ID candlestick.
● At the time of the breakout, the price must be below the 89-period simple moving average.
● Sell 1 point below the low of the NR4/ID candlestick.
● The stop-loss is set 1 point above the high of the outside bar (this is the candlestick immediately before the NR4/ID candlestick).
● Exit the trade after the close of the sixth candlestick following the breakout candlestick.
Now let’s turn our attention to the chart below, which illustrates how to trade this intraday strategy based on the rules above. The chart is the daily chart of the USD/CHF currency pair. Each of the six blue arrows points to an NR4/ID candlestick. You will notice that on this chart, NR4/ID candlesticks are filled as black candles. The light blue line representing price action slopes downward and indicates the 89-period simple moving average.
Trading NR7 candlesticks.
The narrow-range 7 candlestick (NR7 candlestick) is the narrowest candlestick over the last seven trading days. Therefore, the NR7 formation consists of a total of seven candlesticks. The range of the seventh candlestick or last candlestick will be less than the range of each of the previous seven candlesticks. Let's see how the NR7 candlestick formation appears on the price chart.
In this chart example, you will notice that the price action of the last seven candlesticks is circled. Please note that the range of the last candlestick (the seventh candlestick) is narrower than the previous six. Simply put, the high and low range of the seventh candlestick is less than each of the candlesticks numbered 1 to 6. Therefore, the seventh candlestick can be marked as the NR7 candlestick and confirm the formation.
Similar to the process of identifying NR4 formations, we will also follow the same steps to identify NR7 formations, but with one exception. In evaluating NR7 formations, we will look back at the high and low data points of a total of seven candlesticks, rather than just confirming the last four.
As for entry signals, the NR7 trading setup works in the same way as the NR4 setup. That is, when the price breaks above the high of the NR7 candlestick, a bullish signal occurs. When the price breaks below the low of the NR7 candlestick, a bearish signal occurs.
At this point, you may be wondering what the actual difference is between trading NR7 and NR4 setups and why we might choose one over the other. It is clear that since the requirements for the NR4 candlestick are looser than those for the NR7 candlestick, you will see more NR4 setups than NR7 setups.
The NR7 candlestick requires a higher degree of price action compression than the NR4 candlestick. Therefore, we usually see breakouts following NR7 candlesticks being more significant than those following NR4 candlesticks. While this is not always the case, this guideline holds true in most situations.
NR7 candlestick trading example.
Here are the rules for trading NR7 candlestick setups:
NR7 candlestick setup rules – (using daily chart timeframe).
Long NR7 trading setup rules.
● The candlestick after the NR7 candlestick must break above the high of the NR7 candlestick.
● At the time of the breakout, the price must be above the 89-period simple moving average.
● Buy 1 point above the high of the NR7 candlestick.
● The stop-loss is set 1 point below the low of the NR7 candlestick.
● Exit the trade after the close of the sixth candlestick following the breakout candlestick.
Short NR7 trading setup rules.
● The candlestick following the NR7 candlestick must break below the low of the NR7 candlestick.
● At the time of the breakout, the price must be below the 89-period simple moving average.
● Sell 1 point below the low of the NR7 candlestick.
● The stop-loss is set 1 point above the high of the NR7 candlestick.
● Exit the trade after the close of the sixth candlestick following the breakout candlestick.
Now that we understand the rules for trading NR7 candlestick setups, let’s look at some practical examples. The chart below displays the daily chart of the USD/CAD currency pair. There are a total of six signals on this chart, with the yellow candlestick representing the actual NR7 candlestick. The light blue line at the bottom of the chart represents the 89-period simple moving average, which serves as our trend filter.
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Starting from the left, we can see that the first NR7 candlestick setup will issue a bullish entry signal on the following candlestick. This will lead to a stop-loss position since the low of the NR7 candlestick is triggered shortly after the entry.
Next is the second NR7 candlestick setup, where we will look for a bearish entry signal after the NR7 candlestick. The subsequent candlestick broke out, allowing us to enter a short position here. Similarly, this trade resulted in a loss as the price eventually broke above the NR7 candlestick, triggering our stop-loss. This occurred as the price moved from below to above the 89-period simple moving average.
We can see that the third NR7 setup occurs shortly after the price breaks above the 89-period simple moving average. A bullish entry signal is triggered when the price subsequently breaks above the high of the NR7 candlestick. We will set the stop-loss below the low of the NR7 candlestick. The exit will be triggered after the close of the sixth candlestick following the breakout candlestick. This can be seen with the shooting star candlestick formation that forms before a strong green candlestick.
The fourth NR7 candlestick setup appears the day after the strong green candlestick mentioned above. Interestingly, the candlestick that breaks the high of this NR7 candlestick also ends up forming an NR7 candlestick itself. However, at this point, we are already in a long trade and will continue to hold the position until the exit signal appears, ultimately resulting in a profitable trade.
The last NR7 candlestick formation is far above the 89-period simple moving average. We can see that the price breaks upward the next day, triggering our buy entry order. The exit will be triggered after the close of the sixth candlestick following the breakout candlestick (i.e., the sixth day). This is shown by the last green candlestick on this price chart.
A single tree cannot form a boat; a lone sail cannot sail far! In the cryptocurrency circle, if you do not have a good circle or insider information, then I suggest you follow me (Crypto Muqing) to help you get rich without investment. Welcome to join the team!!!
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