1. High Selling and Low Buying in Volatile Markets
In a volatile market, prices often fluctuate between support and resistance levels, providing us with excellent opportunities for high selling and low buying. When mainstream coins like BTC/ETH reach support levels (e.g., BTC at 98,000 USDT), one can consider opening long positions; when they reach resistance levels (e.g., BTC at 102,000 USDT), one can open short positions, easily capturing a 3% fluctuation profit.
Key Points of Operation:
Leverage Control: To reduce risk, it is recommended to keep the leverage ratio at ≤5 times, ensuring that even if prices experience a certain reverse fluctuation, there are sufficient funds to bear the risk.
Position Management: Each time a position is opened, it should not be too heavy. It can be reasonably allocated based on one's capital and risk tolerance, generally recommending no more than 20% of total funds.
Stop Loss and Take Profit: When opening a long position, the stop loss can be set just below the support level, such as at 97,000 USDT, and the take profit at the resistance level; when opening a short position, the stop loss can be set just above the resistance level, with the take profit set at the support level. Strictly execute discipline to avoid greed and fear affecting decision-making.
2. Trend Following Method
When the daily moving averages of cryptocurrencies show a bullish arrangement (the 5-day moving average is above the 10-day moving average, and the 10-day moving average is above the 20-day moving average, etc.), it indicates that the market is in an uptrend. At this time, one can use 5 times leverage to go long and amplify profits. For instance, when the price of ETH breaks through the key resistance level of 2,600 USDT, and the MACD indicator shows a golden cross, this is a strong bullish signal, and one can enter decisively.
Key Points of Operation:
Trend Confirmation: In addition to the bullish arrangement of moving averages and MACD golden cross, one can also combine trading volume, Bollinger Bands, and other indicators to assess comprehensively, ensuring the effectiveness of the trend.
Stop Loss Setting: To prevent losses from trend reversals, the stop loss can be placed below the recent low, such as at 2,550 USDT, which can control risk while allowing for some price fluctuation.
Take Profit Target: Set a reasonable take profit target based on previous resistance levels or technical analysis, such as at 2,800 USDT. Once the target is reached, take profit promptly to lock in gains.
3. Event-Driven Lightning Strike
Major news (such as interest rate hikes by the Federal Reserve, policy changes in various countries, etc.) often has a dramatic impact on the cryptocurrency market. By positioning before the news is released, one can seize the opportunity. It is recommended to reverse open positions based on market expectations before the news is released (e.g., if the market expects a rate hike to be bearish, one can appropriately open long positions), using 3 times leverage, and quickly close positions within 15 minutes after the news is released for rapid entry and exit.
Key Points of Operation:
News Analysis: Pay attention to market hotspots and important events in advance, deeply analyze the impact of news on digital currencies, and determine whether it is bullish or bearish, as well as the potential market reaction.
Position Control: Due to the high uncertainty surrounding news, the leverage ratio should not be too high, 3 times is appropriate, and positions should also be kept at a low level to avoid significant losses due to news not meeting expectations.
Timely Closing: After the news is released, market sentiment may change rapidly, and prices may fluctuate dramatically. It is essential to close positions based on market reactions within 15 minutes, avoiding prolonged battles.
