My method of trading cryptocurrencies is very simple and practical. In just one year, I made it to an eight-digit figure, only trading one type of formation, entering only when I see an opportunity, and not placing trades without a formation. I have maintained a win rate of over 90% for five years!
I was once so poor that I had to pick up cigarette butts to smoke; in my fourth year of trading cryptocurrencies, I exploded my account to the point where I couldn't even pay back my 'Huabei'.
But now, holding two SU7ultra—it's not relying on sophisticated technology, but a set of trading rules that are extremely simple yet incredibly stable.
I. Time-watching unwritten rules.
✅ Must-read mantra: 'Play dead in the morning, hunt in the evening.'
- 8 AM - 6 PM (Asian Time):
→ The market makers frantically draw fake K-lines, 9 out of 10 breakouts are false.
→ Veteran operation: Only place ±1% grid orders (automatically buy low and sell high).
- 9 PM - 1 AM (when the US dad is at work):
→ When large institutions enter with real money, the K-line will exhibit a 'stair-step' pattern.
→ Money-picking posture: See a volume breakout above previous highs, close your eyes and follow with 3% of your position.
- ⚡️ Every Thursday at 3 AM (when the Federal Reserve speaks):
→ The moment the data is released, the market moves like a rocket/dive.
→ Unique skills: Set a breakout order 5 minutes in advance + reverse stop loss
→ Case: Last year, I earned half a year's salary in one minute using this trick.
II. Indicator God Operations (can be used on mobile phones)
MACD three-color killer technique:
① The third golden cross appears below the zero axis → Full position signal (success rate 80%)
② When the golden cross occurs, the green bar is higher than the previous two occurrences → It rises even more sharply (last month ETH surged based on this).
③ When the daily chart shows 'morning star' → directly double the position
RSI advanced usage:
❶ When the value drops below 30, suddenly pull back into the rising channel.
❷ The 4-hour chart shows 'crocodile mouth'; I caught three thousand-point market movements last year using this trick.
III. Life-saving tricks (the ones market makers hate the most)
️ Smart stop loss:
▸ When rising: Place stop losses 5% below the recent low (to guard against false breaks).
▸ During a crash: Lock in positions immediately at a 5% loss and go off to eat skewers to calm down.
▸ Underhanded move: Place hidden stop losses at key support levels (such as previous lows, Fibonacci 38.2%).
Explosion protection shield:
① Capital is divided into 10 parts, and only 1 part is played each time.
② Withdraw the principal when profits exceed 20% (leave the profits to continue rolling).
Wealthy mantra:
"Sleep during the Asian session and act during the US session. When the data comes out, don't tremble."
Three-way golden cross full position hit, crocodile mouth reveals thousand-point moves.
Earn enough 20% of the principal to withdraw, lose 5% and get out.
By understanding these rules, you too can earn the little sun you want in the cryptocurrency world like a god!
1. Never buy coins when the price is high; have the mindset that no matter how much it rises, it has nothing to do with you—treat it as if the coin does not exist.
2. There are two types of coins: coins at buying points are good coins, while coins not at buying points are garbage coins; coins at major buying points are the best-performing coins. Patience is required for coins that are built at major levels to become truly high-performing stocks; this is the correct mindset.
3. In fact, the mindset for trading cryptocurrencies is the most important. Many people know very well that it is not a buying point, yet they can't help but buy; this shows a problem with the mindset. If this is not resolved, learning any theory is useless.
4. Maintain a stable mindset; do not get emotionally attached to any coin or point; only look at the signals provided by the market; have feelings for the buying and selling points.
5. When making mistakes in operations, do not look for reasons in the market, only look for reasons within yourself. Each mistake must be summarized immediately.
6. A mindset without technical support is a foolish mindset, and there is no reaction at all. Only insights guided by wisdom can ensure a good mindset.
7. Why can't you let yourself be like a wolf? This has nothing to do with how much capital you have. As long as you can buy at the buying point and sell at the selling point, that is the most powerful.
8. Always remain calm during operations; with money, you can have anything. Don't be afraid of not finding good coins.
9. In the market, any luck is only temporary, and the market will make you pay back double. To face the market, one must fundamentally change oneself to overcome it.
It can be said that I have used 80% of the methods and techniques in the market. I want to share with everyone the most practical ones from real combat—one trick to eat all! Moving average secrets + 'Granville's eight major rules' will guide you to accurately capture buying and selling points, repeatedly proven effective! A profit of 30% in a month.
Due to its simple calculation and trend guidance, the moving average has become one of the most popular technical indicators in financial markets. Besides identifying trends, can we also apply moving averages for other trades?
The answer is affirmative! The famous American volume-price analysis expert Joseph Granville proposed the 'Eight Major Rules' based on moving averages. Through bias, moving average crossovers, and other logic, he built a moving average trading system. This 'Granville's Eight Major Rules' has become a highly regarded investment strategy in the field of technical analysis, showcasing the core ideas of the 'Dow Theory' through moving averages.
First, let's understand who Granville was. In addition to founding the eight major rules of Granville, he was also the founder of moving averages and the first person to propose the "volume-price theory." On January 6, 1981, Granville warned investors, predicting an impending stock market crash and advising them to sell all stocks. Indeed, the next day the Dow Jones index dropped by 4.2%, and over the following year, the Dow fell by 14%. This accurate prediction made Granville famous in the investment community.
Granville's eight major rules believe that price fluctuations have certain laws, while moving averages represent the direction of the trend. Therefore, when the price deviates from the trend, i.e., 'the deviation between price and moving average', future corrections will occur in the direction of the trend. Thus, the occurrence of deviation is a significant buy or sell signal.
The deviation of price from the moving average is referred to as bias (Bias), where Bias = Price - MA, with Price being the price and MA being the moving average. The larger the bias, the higher the likelihood of price correction. However, on the other hand, if the trend is accelerating, the future bias may also be expected to expand. Therefore, bias is also an observation indicator.
Granville's eight major rules utilize the relationship between price (stock price, futures price, or exchange rate, etc.) and moving averages as the basis for buy and sell signals. The main strategies include support, resistance, breakout, deviation, false breakout, etc. Through these signals, investors can obtain references in their operations.
Granville believes that stock price fluctuations have certain regularities, and moving averages represent the direction of the trend. Granville's eight major rules summarize eight different scenarios as the basis for entry and exit.
① Breakout: When the moving average shifts from a downward trend to a flat consolidation or upward trend, and the price breaks above the moving average from below, it can be considered a buying signal.
② False breakout: The stock price falls below the moving average but immediately rebounds above the moving average, and the moving average is still showing an upward trend, which can be considered a buying signal. ③ Support: When the price trend is above the moving average, although the price corrects and falls, it does not break below the moving average and then rebounds again, it can be considered a buying signal.
④ Rebound: When the stock price falls sharply, not only does it break below the moving average, but it also deviates far below the moving average, and when the stock price starts to rebound and tends towards the moving average, it can be considered a buying signal.
⑤ Break: When the moving average shifts from an upward trend to a flat line or downward trend, and the price falls below the moving average from above, it can be considered a sell signal.
⑥ False breakout: When the stock price rebounds and breaks through the moving average, but then reverses and falls below the moving average, and the moving average still shows a downward trend, it can be considered a sell signal.
⑦ Resistance (pressure): When the price trend continues to operate below the moving average, even if the price rebounds, it cannot break above the moving average, at which point the moving average becomes a resistance to the price and can be considered a sell signal.
⑧ Reversal: When the price rises sharply and deviates far above the moving average, and then the price reverses and falls back towards the moving average, it can be considered a sell signal.
◔ Four core spirits of Granville's eight major rules.
1. It is not advisable to short when the moving average is rising, and it is not advisable to go long when the moving average is falling.
2. The moving average itself has properties of support and resistance, and thus is conducive for analyzing bullish and bearish trends.
3. The bullish and bearish arrangements of prices are the combination patterns of price and moving averages. Once the arrangement trend reverses, it is necessary to change strategies and conduct counter-trend operations.
4. The golden cross and death cross of moving averages occur at the intersection of past price costs. Once the intersection occurs, it often leads to a trend in price either rising or falling, providing opportunities for trend-following operations.
◔ Four major application flaws of Granville's eight major rules
1. Due to the high reliance of Granville's rules on moving average operations, and since moving averages are the historical trajectory of prices, the occurrence of signals often lags behind the price, resulting in time delays.
2. When the price is trapped in a consolidation trend, it usually produces false signals.
3. When choosing a shorter moving average period, such as 5 days or 10 days, the time lag of signals will decrease, but false signals will be more frequent.
4. When choosing a longer moving average period, such as 120 days or 200 days, the signals obtained will be significantly effective, but there will be a time lag. For example, buy and sell signals will only appear after the price has risen or fallen a bit.
◔ Granville's eight major rules parameter setting
As mentioned earlier, using a shorter moving average period (such as the 10-day line) is more sensitive to changes compared to a longer moving average. Conversely, a longer moving average will respond more slowly and steadily. Therefore, when the stock price breaks through both long and short moving averages simultaneously, it can be seen as a short-term reversal buying signal for entering the market. If the price breaks below the short-term moving average, it can be seen as a short-term reversal selling signal, and short-term traders may even short the market.
Therefore, the choice of moving average periods is very important. Some buddies may ask: Which parameter is the best? This is a very good question, as it is also a question that every trader is seeking answers to.
Here is a standard answer: there are no best or most accurate cycle parameters; there are only the cycles that suit you best.
Some traders may be short-term traders, so the cycle parameters for moving averages do not need to be set too long to respond to the rapid fluctuations required for short-term trading. Alternatively, if traders are swing traders, the cycle parameters for moving averages do not need to be set too short, as they are used to judge the medium-term trend of price movement.
Find the moving average periods that match the products you are trading, and align them with your own operational logic and habits to ensure the reliability and stability of buy and sell signals.
Before traders actually start using the eight major rules for buy and sell signals, they should first have a considerable grasp of the results obtained from various commodities and cycles in terms of accuracy and win rate, so that application can be more effortless.
◔ Practical application cases of Granville's eight major rules
I believe that after learning the above content, you have understood Granville's eight major rules.
Granville's eight major rules are highly dependent on moving averages, so they can be used not only for stocks but also in futures, gold, oil, and foreign exchange markets.
Now let's take a look at how Granville's eight major rules are applied in trading.
Case 1: Buying opportunity in an uptrend
The K-line in the above figure is the daily chart of CAD/JPY, with the orange line representing the 200-day moving average. In the upward trend shown above, traders operate according to Granville's eight major rules, and it is suitable to wait for opportunities to buy at points ①, ②, and ③, and to sell at point ⑧.
Case 2: A good selling opportunity in a downtrend.
The K-line in the above figure is the daily chart of the NZD/JPY, with the orange line representing the 200-day moving average. In the downtrend shown above, traders operate according to Granville's eight major rules, and it is suitable to wait for opportunities to sell at points ⑤, ⑥, and ⑦, while buying at point ④.
When it comes to the moving average system, it should be said that Granville's eight major rules are the foundation of all subsequent applications of moving averages. Next, taking the four methods of entering the market with rising moving averages as an example, it provides us with an effective trading strategy to help traders capture entry opportunities in an upward market trend.
A pattern: Price breaks above the moving average, enter to go long.
Moving averages have the function of support and resistance. When the price breaks above the moving average, it indicates that the original resistance level has been broken, which is a signal to consider entering the market. However, to avoid interference from market noise, traders can set conditions to filter out false breakout signals. For example, a large bullish candle breaks the moving average, or the closing prices of two consecutive K-lines are both above the moving average, which can improve trading accuracy.
Derivative trading modes can be approached in various ways. For example, going long when the short-term moving average crosses above the long-term moving average, or going long when the price breaks through the outer band of Bollinger Bands. Additionally, going long when the short-term moving average breaks above the mid-term moving average and the long-term moving average is also on an upward trend. These strategies are based on the combination of moving averages and price indicators to capture potential buy signals.
The A-type opening model is prone to frequent entry and exit operations when the moving average is flat and the market lacks a clear trend, leading to significant capital drawdowns, so it is not easily accepted by traders.
B pattern: Price retraces near the moving average and receives support, enter to go long.
In the context of a primary upward trend, utilizing market pullbacks at key positions to enter trades is a typical strategy. This method is also one of the more popular trading models in the current market.
C pattern: Price retraces and falls below the moving average but receives support, and the price is above the moving average, go long.
Essentially the same as the B pattern, utilizing pullbacks at key positions to enter trades under the primary upward trend is a typical strategy and is also one of the more popular trading models.
Derivative trading models include double moving average and triple moving average strategies. In these strategies, the price can break below the short-term moving average but cannot break below the long-term moving average.
D pattern: Price quickly moves far from the moving average, enter to go short.
This opening model belongs to counter-trend trading and is not recommended for standalone use. We should utilize the volatility opportunities in pullbacks (such as B and C patterns) rather than directly trading the pullback waves. This can reduce risk and improve the success rate of trades.
Trend judgment
In addition to using the B and C patterns for entering the market with moving averages, the most core and common function of moving averages is to judge market trends. Its advantage lies in its simplicity and significant effect, applicable to various products and different time periods. When the moving average is upward, it indicates an upward trend; when the moving average is downward, it indicates a downward trend.
Derivative trading models include double moving average and triple moving average strategies. In the double moving average model, the short-term moving average crosses above the long-term moving average and points upward, indicating an upward trend; conversely, if it points downward, it indicates a downward trend. In the triple moving average model, if the short-term moving average is above the mid-term moving average, and the mid-term moving average is above the long-term moving average, with all three pointing upward, the trend is upward; if not, it indicates a downward trend.
Use moving averages for trailing stop loss exits.
In Granville's eight major rules, moving averages can serve as both support and resistance, helping us find entry points, and can also serve as a basis for trailing stop losses. When the price breaks through the moving average, it usually means we need to exit. Especially in a long trend trade, when the price falls below the moving average, it is a clear exit signal.
In a short-selling trend trade, when the price breaks below the moving average, we exit.
In practical applications, we can combine other factors to filter out false breakouts. For example, the K-line must break through the moving average with a long body, or the closing prices of two consecutive K-lines must both break through the moving average. Additionally, the K-line at the time of the breakout needs to be accompanied by an increase in trading volume (applicable to stocks and futures). We can even use multiple moving averages and set conditions to exit after the K-line breaks through multiple moving averages. These methods can effectively improve trading accuracy.
The parameters of moving averages need to be adjusted based on individual trading systems. In fact, the essence of all moving averages is the same. Long-term moving averages are not sensitive to price changes and can capture larger trends, but may also be swallowed by many floating profits. Short-term moving averages, on the other hand, are more sensitive and can capture more trend occurrences, but too high a trading frequency may affect the overall performance of the system. Therefore, it is very important to set moving average parameters reasonably.
Starting from the moving average indicator, we can further explore other technical indicators, such as Bollinger Bands outer bands and parabolics. These indicators can also serve as exit points for trailing stop losses, helping us better manage risks and seize trading opportunities.
Three uses of moving averages: enter the market in the direction of the trend, take profit when exiting, and counter-trend bottom fishing.
An advanced use of moving averages is to use them as conditions for trailing profit. For example, when the moving average continues to rise, if the price does not break below the moving average, we can continue to hold the position. Only when the price breaks below the moving average should we consider taking profit. This method can help us lock in profits during trends.
Moving averages have three main uses. Firstly, enter the market according to Granville's eight major rules, that is, buy when the price approaches the moving average or buy when there is a rebound after the price approaches the moving average. Secondly, moving averages can be used as a basis for trailing stops, for example, if the price rises after going long, if it then breaks below the moving average, exit the position. Finally, moving averages can also be used as conditions for counter-trend entry, for example, after a price drop when the price breaks above the moving average to bottom fish; or after a price rise when the price breaks below the moving average to short. This means that the same moving average can have different application effects depending on different market environments.
Summary
Trading systems designed mainly using moving averages typically have lower win rates and higher drawdowns. Therefore, it is recommended that everyone primarily use moving averages to judge market trends. Entry positions can be grasped through B and C structure patterns, while the A structure pattern and its derivatives are not recommended for entry to avoid potential risks. Additionally, it is advisable to avoid using the D structure pattern for entry. Moving averages can also serve as a method for trailing stop losses to help manage risks.
The eight major rules of Granville are defined with different parameters for moving averages. Short-term can use 10MA as a parameter, while medium to long-term can use 22MA and 65MA as parameters. The moving average is essentially the average cost of price holders. Granville's eight major rules reflect the relationship between price and the average cost held by most people, using changes in this relationship as a basis for buying and selling.
In addition to freely setting the parameters for moving averages, one can utilize the daily, weekly, monthly moving average periods of trading software to determine buy and sell timing. For very accurate application, it is necessary to select appropriate moving average periods and combine them with wave theory for operation, which allows for precise grasping of price fluctuations.
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