In the cryptocurrency world, I rely on this 'foolproof method' to earn a fortune.
The simplest winning strategy is called 'Bottom Formation'.
It appears at the end of a downtrend and consists of three candlesticks:
The first is a medium to long bearish candlestick, the second is a small pause candlestick, and the third is a large bullish candlestick that must break through the first bearish candlestick.
This indicates that the bears are losing strength, there is a turnover of positions, and the main force is entering, making it a very strong short-term reversal signal.
Practical experience summarizes it this way:
A bearish candlestick creates inertia, two pause candlesticks build momentum, and three bullish candlesticks mark the starting point of a counterattack.
Especially after the bottom formation, if there is an additional ascending flag pattern, it signals the eve of an explosion.
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Six 'Do Not Enter' Rules:
Do not touch when it falls sharply and the 60-day moving average has not stabilized.
Do not chase after a big rise when good news comes out.
Do not engage when there is a sharp rise away from the 5-day moving average.
Do not trade when there is a gap at a high level that has not been filled.
Avoid those with a turnover rate exceeding 30%.
Be willing to give up when you know it's weak but still resist the trend.
Four 'Do Not Let Go' Rules:
Hold on when there is a gap up from a low position.
Wait for swings when the trend is clearly upward.
There is still space when RSI is in the 50-80 range.
Do not rush to leave before the main force's concentrated area has been broken.
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Three Major Experience Summaries:
First is news judgment:
Good news often comes out just before the final peak, while the real bottom is often silent.
Second is technical analysis:
An uptrend usually follows three steps: base building - breakout - increased volume. Volume is the engine of the market.
Third is mindset management:
Do not fear drops, but fear a chaotic mindset. Less trading and more waiting is the true essence of trading.
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This method is not particularly clever, but it excels in clarity, practicality, and avoids gambling.
Techniques can be learned, mindset is honed, and making big money relies on long-term, correct repetition of 'foolproof methods'.
