I know an old senior who entered the cryptocurrency world with 100,000 yuan*+ and now has a market value of 42 million yuan. He said something to me that was eye-opening. He
said: "The crypto market is just a mob. You only need to control your emotions, and this market is an ATM!
In the crypto world, trading strategies are your "secret weapon". The following formulas are the crystallization of practical experience, so hurry up and collect them.
Collection!
Entry strategy: Try out the crypto world, prepare first; enter steadily, reject recklessness.
Sideways strategy: When the market is sideways at a low level and creates a new low, it is the right time to bottom-fish with a heavy position; when the market is sideways at a high level and then rallies, resolutely sell and don't hesitate.
Volatility strategy: Sell immediately on rallies, quickly enter on dips; observe during sideways movement and reduce trading. Sideways movement means replacing the fall with sideways movement, hold on to your chips, and a pull-up may
just the next second; when the market rises rapidly, be alert to sharp drops and be ready to take profits; a slow decline is a good time to gradually add to your position.
Buying and selling timing strategy: Don't sell when it rallies, don't buy when it dips; don't trade when it's sideways. Buy on the yin line and sell on the yang line, and reverse operations will
can stand out. Buy when the market drops sharply in the morning and sell when it rises sharply in the morning; don't chase highs when the market rises sharply in the afternoon, and buy the next day when the market drops sharply in the afternoon; don't
Cut your losses, rest when there's no rise or fall; add to your position when trapped to break even, and avoid excessive greed.
Risk awareness strategy: High waves rise on a calm lake, and there may be big waves later; there must be a callback after a big rise, and the K-line shows a triangle for many days. Look for uptrends
support, and look for resistance in a downtrend. Full positions are a big no-no, and going your own way is not feasible; know when to stop in the face of impermanence, and seize the opportunity to enter and exit.
Cryptocurrency trading is actually about trading mentality. Greed and fear are the biggest enemies; be cautious when chasing highs and selling lows, and be calm and at ease.
In addition to formulas, I have also compiled several super practical trading methods that can benefit both novice beginners and experienced players.
Oscillation trading method: Most markets are in an oscillating pattern, and using high selling and low buying between boxes is the basis for stable profit. With the help of the BOLL indicator
Combine box theory* with technical indicators and charts to pinpoint resistance and support. Follow short-term buying and selling principles, and avoid greed.
Breakthrough + trading method*: After a long period of consolidation, the market will choose a direction, and chasing in after a breakout can quickly generate profits. However, it requires accurate breakout
Unilateral trend trading method*: After the market breaks through the consolidation phase, it will form a unilateral trend. Following the trend is the key to profit. Enter during pullbacks or rebounds.
When placing orders, refer to indicators such as candlesticks, moving averages, BOLL, and trend lines. Only skillful use can allow you to be at ease.
Resistance and support trading method*: When the market encounters key resistance and support levels, it will often be blocked or supported. Entering orders at this time is a common strategy.
Use trend lines, moving averages, Bollinger Bands, parabolic indicators, etc. to accurately determine resistance and support levels.
Pullback rebound trading method: A brief pullback or rebound will occur after a large rise or fall. Seize the opportunity to easily profit. The main basis is the judgment of candlestick patterns.
judgment, and good market sense can help you accurately grasp highs and lows.
Time period trading method: The early morning and afternoon sessions have small fluctuations, which are suitable for conservative investors. Although it takes a long time to profit from orders, the advantage is that the market is easy to grasp
Grasp; the evening and early morning sessions have large fluctuations, which are suitable for aggressive investors. It can generate profits quickly, but the difficulty is high, and it requires strict technical and judgment skills.
price.
I have specially compiled the [Narrow Range (NR) Candlestick Pattern!] and shared it with those who are destined to receive it. Please collect it carefully, and remember to follow (Crypto Muqing)*. I will share more content with you later.
The narrow-range volatility candlestick strategy is a simple breakout strategy that enters long positions at predefined highs and short positions at predefined lows.
head position. These predefined levels are usually the highs and lows of the narrow-range volatility candlestick pattern.
The biggest advantage of this strategy is its simplicity. While narrow-range volatility candlestick breakouts are simple to execute, they can be
is still a highly effective pattern.
The three main variations of the narrow-range volatility candlestick breakout strategy are the NR4 breakout, which is a breakout from the narrowest candlestick in the last four days. The second variation is
NR4/ID setups, which involve breakouts from the narrowest range candlestick in the last four days, which is also an inside day K-line.
The last variation 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 the breakout from the most
the narrowest range candlestick breakout in the last seven days.
I will look at three different variations on the price chart in more detail and discuss a way to filter and trade these narrow-range volatility candlestick setups.
method.
Trading NR4 candlesticks+
The Narrow Range 4 (NR4 candlestick) is the narrowest volatility candlestick in the past four trading days. Therefore, the NR4 pattern consists of a total of four candlesticks
composition. The range of the fourth candlestick or the last candlestick will be smaller than the range of each of the previous three candlesticks. Let's take a look at the NR4
performance of the pattern 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 look closely, you can see
The last candlestick, the fourth candlestick, has a range smaller than the previous three (candlesticks 1 to 3). Therefore, the fourth candlestick line constitutes NR4
candlestick and verified the pattern.
The process of finding NR4 setups is quite simple. First, you need to check the high and low data of each of the last four candlesticks. This will
allows you to calculate the high and low range of each candlestick.
Then, you 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 previous three days
the range of each candlestick, then the pattern 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 volatility indicator to perform this task.
In any case, once you identify the NR4 pattern on a price chart, you can take the next step to further evaluate and consider trading the setup.
location. At the most basic level, a signal to enter a long trade appears when the price breaks through the high of the NR4 candlestick. Conversely, when the price
A signal to enter a short trade appears when the price breaks below the low of the NR4 candlestick.
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)
Rules for long NR4 trading setups
The candlestick after the NR4 candlestick must break through the high of the NR4 candlestick.
· The price must be above the 89-period simple moving average at the time of the breakout.
· The buy price is 1 point higher than the high of the NR4 candlestick.
· Stop loss is set 1 point below the low of the NR4 candlestick.
· Exit the trade at the close of the third candlestick after the breakout candlestick.
Rules for shorting with NR4 trading setups
The candlestick after the NR4 candlestick must break below the low of the NR4 candlestick.
· The price must be below the 89-period simple moving average at the time of the breakout.
· Sell 1 point below the low of the NR4 candlestick.
· Stop loss is set 1 point above the high of the NR4 candlestick.
· Exit the trade at the close of the third candlestick after the breakout candlestick.
Now that we have the rules for trading NR4 setups, let's look at a price chart and apply the strategy. The following chart is a GBP/USD currency pair
daily chart. You can see five arrows pointing to specific blue candlesticks. These blue candlesticks represent NR4 candlesticks. Marked on the chart
The light blue line 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 far left, the first signal occurs after breaking down
NR4 candlestick. We will exit the position on the third candlestick after the breakout candlestick, which resulted in a profitable trade.
The second signal occurs shortly after the price breaks through the 89-period simple moving average. Here, we will wait for the breakout of the NR4 candlestick
high point. We can see this happening on the subsequent candlestick, which is our signal to go long. We will be on the third candlestick after the breakout candlestick
candlestick to exit the position. This will happen when the shooting star pattern that forms a swing high is formed.
The third NR4 trading signal occurs after a brief pullback. Note that the candlestick after this NR4 candlestick breaks through the high and closes within its range.
near the top of the range. The stop loss will be set at the low of the NR4 candlestick and was never threatened. The exit is triggered on the third day after the breakout candlestick.
breakout, which occurred on the day the candlestick itself was 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 through this NR4 candlestick
high of the 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 addition of a condition that the last candlestick (the fourth candlestick) must also be an inside
envelope (inside bar). An inside bar is one whose high and low range is contained within the range of the previous candlestick. Therefore, the fourth in the NR4 candlestick
This narrow inside bar setup occurs when the high and low range of the candlestick is contained within the range of the third candlestick in the structure.
The following is an example of an NR4/ID candlestick pattern:
As shown, the range of the fourth candlestick is smaller than the range of each of the previous three candlesticks (candles 1-3). Therefore, the fourth candlestick
The candlestick is considered an NR4 candlestick. In addition, the fourth candlestick is also contained within the range of the third candlestick. More specifically, the high point of the fourth candlestick is low
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
line pattern. Therefore, the structure is both an NR4 candlestick and an inside bar, which makes it an NR4/ID candlestick structure.
The process of finding the NR4/ID candlestick structure is similar to the process of finding the NR4 candlestick structure, but with the addition of a significant condition. This condition is
The fourth candlestick must also be an inside bar.
The basic signal to enter a long trade in an NR4/ID setup is when the price breaks through the high of the NR4/ID candlestick. Conversely, the signal to enter a short trade is
The price breaks below the low of the NR4/ID candlestick.
NR4/ID candlestick trading example
The following are the simple rules for trading NR4/ID candlestick setups:
NR4/ID Candlestick Setup Rules - (Using Daily Chart Timeframe)
Rules for going long with NR4/ID trading setups
The candlestick after the NR4/ID candlestick must break through the high of the NR4/ID candlestick.
· The price must be above the 89-period simple moving average at the time of the breakout.
· Buy 1 point above the high of the NR4/ID candlestick.
Stop loss is set 1 point below the low of the outside bar (This is the candlestick immediately preceding the NR4/ID candlestick)
· Exit the trade at the close of the sixth candlestick after the breakout candlestick.
Rules for shorting with NR4/ID trading setups
The candlestick after the NR4/ID candlestick must break below the low of the NR4/ID candlestick.
· The price must be below the 89-period simple moving average at the time of the breakout.
Sell 1 point below the low of the NR4/ID candlestick.
· Stop loss is set 1 point above the high of the outside bar (This is the candlestick immediately preceding the NR4/ID candlestick)
· Exit the trade at the close of the sixth candlestick after the breakout candlestick.
Now let's turn our attention to the chart below, which illustrates how to trade this intraday strategy according to the rules above. The chart is USD/Swiss
daily chart of the pound/dollar 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 with black candles. The light blue line sloping downwards in price action represents the 89-period simple moving average.
Trading NR7 candlesticks+
The Narrow Range 7 candlestick (NR7 candlestick) is the narrowest volatility candlestick in the past seven trading days. Therefore, the NR7 pattern consists of a total of seven candlesticks.
composition. The range of the seventh candlestick or the last candlestick will be smaller than the range of each of the previous seven candlesticks. Let's take a look at the NR7 candlestick
performance of the candlestick pattern on the price chart.
In this chart example, you will notice that the last seven candlesticks' price action is circled. Note that the last candlestick (the seventh K
line) is narrower than the previous six. Simply put, the high and low range of the seventh candlestick is smaller than that of each of the numbered 1 to 6 candlesticks. Therefore, the seventh
The candlestick can be marked as an NR7 candlestick and the pattern confirmed.
Similar to the process of finding NR4 patterns, we will also follow the same steps to find NR7 patterns, but with one exception. In the evaluation
When identifying NR7 patterns, 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 the entry signal, the NR7 trading setup works the same way as the NR4 setup. That is, when the price breaks through the high of the NR7 candlestick
When the price breaks through the high of the NR7 candlestick, a long signal appears. When the price breaks below the low of the NR7 candlestick, a short signal appears.
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.
one or the other. Obviously, since the requirements for NR4 candlesticks are less stringent than those for NR7 candlesticks, you will see more NR4 setups, and
is not an NR7 setup.
NR7 candlesticks require a higher degree of compression of price action than NR4 candlesticks. Therefore, we usually see breakouts after NR7 candlesticks than
The breakout after the NR4 candlestick is more significant. While this is not always the case, this guideline holds true in most cases.
NR7 candlestick trading example
The following are the rules for trading NR7 candlestick setups:
NR7 Candlestick Setup Rules - (Using Daily Chart Timeframe)
Rules for going long with NR7 trading setups
The candlestick after the NR7 candlestick must break through the high of the NR7 candlestick.
· The price must be above the 89-period simple moving average at the time of the breakout.
· Buy 1 point above the high of the NR7 candlestick.
Stop loss is set 1 point below the low of the NR7 candlestick.
· Exit the trade at the close of the sixth candlestick after the breakout candlestick.
Rules for shorting with NR7 trading setups
· The candlestick after the NR7 candlestick must break below the low of the NR7 candlestick.
· The price must be below the 89-period simple moving average at the time of the breakout.
· Sell 1 point below the low of the NR7 candlestick.
Stop loss is set 1 point above the high of the NR7 candlestick.
· Exit the trade at the close of the sixth candlestick after the breakout candlestick.
Now that we understand the rules for trading NR7 candlestick setups, let's look at some real-world examples. The chart below shows the USD/CAD currency pair
daily chart. There are a total of six signals on this chart, with yellow candlesticks representing the actual NR7 candlesticks. The light blue line at the bottom of the chart represents the 89-week
period simple moving average, which is our trend filter.
Starting from the far left, we can see that the first NR7 candlestick setup will issue a long entry signal on the subsequent candlestick. This will result in
The position was stopped out because the low of the NR7 candlestick was triggered shortly after entry.
Next is the second NR7 candlestick setup, where we will look for short entry signals after the NR7 candlestick. A breakout occurred in the subsequent candlestick.
breakthrough, causing us to enter a short position here. Again, this trade resulted in a loss, as the price eventually broke through the NR7 candle, triggering
triggered our stop loss. This happened when the price moved from below the 89-period simple moving average to above it.
We can see that the third NR7 setup occurs shortly after the price breaks through the 89-period simple moving average. In the subsequent price breakout
A long entry signal was triggered when the high of the NR7 candlestick was reached. We set a stop loss below the low of the NR7 candlestick. The exit will be at the breakthrough candle
triggered at the close of the sixth candlestick after the candlestick. This can be seen by the shooting star candlestick pattern formed before the strong green candlestick.
to.
The fourth NR7 candlestick setup appears the day after the strong green candlestick mentioned above. Interestingly, the candlestick that breaks through the high of this NR7 candlestick is the most
ultimately also forming an NR7 candlestick. However, at this point we are already in a long trade and will continue to hold the position until exit.
An exit signal appears, and this trade eventually makes a profit.
The last NR7 candlestick pattern is far above the 89-period simple moving average. We can see the price breaking upwards the next day, triggering
our buy entry order. The exit will be triggered on the sixth candlestick (i.e. the sixth day) after the breakout candlestick. This is in this price chart
above is displayed by the final green candlestick.
The mindset for short-term stable profit in cryptocurrency trading
1. Never trade impulsively
Every time a trade ends, no matter whether I make a profit or a loss, I am determined not to look back. After the trade, I close the market chart and don't look at it for a full 24 hours.
glance. Doing so is to prevent yourself from trading impulsively. We close the trade because we know what we're doing, and there's no need to jump back in immediately.
2. Don't touch cryptocurrencies on weekends
The cryptocurrency market is less volatile and has less trading volume on weekends. In this case, price movements are particularly difficult to predict. Those big players in
When liquidity is low, moving your fingers can stir up the price. For us small retail investors, entering at this time is a disadvantage.
3. Choose a time to trade with focus
I only sit in front of the computer to trade when I can concentrate fully. The cryptocurrency market is open 24 hours a day, but we can't keep an eye on it.
I set a trading time for myself, and I only look at the market at that time. This way, I don’t always think about the market and can spend time with my family.
people can also do other things.
4. Don't fall in love with assets
If you have feelings for the assets you are trading, it will be a big problem. Trading should be calm and should not be swayed by personal preferences. Many people will
Liking certain Shanzhai coins, teams, or projects is good for investors, but it can be a huge pitfall for traders.
If you are also a technical controller and are also studying technical operations in the crypto world, you might as well follow (Crypto Muqing), and you will get the latest crypto information and trading skills!
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