I've seen too many beginners staring at a pile of indicators every day, only to become more confused the more they analyze, resulting in a chaotic trading strategy. In fact, after spending time in the crypto space, you realize that the systems that can consistently make money often boil down to just a few tricks. Today, I’m sharing my best MACD practical skills, all hard-earned knowledge that can help you avoid three years of unnecessary detours.

One, don’t be fooled by flashy indicators; MACD is enough.

In the first few years of entering the market, I was also obsessed with various 'magical indicators': RSI, Bollinger Bands, Fibonacci... I ended up finding that the more indicators I used, the more contradictions arose. It wasn't until I blew my account three times that I realized: the core of a trading system isn't complexity; it's practicality.

MACD is something even veterans can't avoid—beginners find it simple and dismiss it, then suffer losses using other indicators, only to come back to it later. It's like the 'old doctor' of the trading world; seemingly ordinary, yet it can accurately judge the market's 'reality.'

Why is MACD reliable? Because it is essentially an 'upgraded version' of moving averages, filtering out noise and directly showing you trend strength. For example, when Bitcoin was trading sideways at $120,000, many called it 'topping,' but MACD was steadily running above the zero line, with red bars continuously enlarging—this indicated the trend was still intact (and it later surged to $130,000).

Two, practical MACD strategies are these three moves, ten times more useful than moving averages.

Don’t use golden and death crosses blindly; if the position is wrong, it’s just wasted effort.

Many people buy at a golden cross and sell at a death cross, only to be repeatedly harvested in a volatile market. Remember: a golden cross that appears below the zero line is at most a 'bounce signal'; don't expect it to reverse. However, if a golden cross appears near the zero line (like ETH rising from $3,000 to $3,600), it's often the starting point of a new upward wave, making entry at this time the most forgiving.

The death cross is the same: a high-level death cross (for example, when SOL rises to $200 and MACD shows a death cross above the zero line) is usually a signal of a top. Last year, a follower didn't believe it and stubbornly held, resulting in a 40% loss. However, if the death cross appears below the zero line, it may just indicate the end of a bounce; don't be quick to short.

Divergence is the 'alarm' for buying the bottom and selling the top.

I've used this strategy for ten years with an absurdly high accuracy rate. When Bitcoin dropped to $28,000 last year, the price set a new low, but the MACD histogram didn’t follow suit (bullish divergence); I decisively bought the dip and made back the losses from my previous three trades.

Be especially cautious of bearish divergence: when prices surge to new highs, but the MACD histogram shortens, it's like a person running with weak legs—last year when TRX surged to $0.25, there was a clear bearish divergence, and I warned my followers to sell quickly; it later fell back to $0.12. Remember, don't rush to act when divergence appears; wait for the histogram to change color (red to green or green to red) before entering, which can improve your win rate by 60%.

Don't adjust parameters randomly; the default values are sufficient.

Some people think that 'adjusting parameters can make it more agile'; in fact, the default MACD parameters of 12/26/9 are a golden combination verified by decades of market experience. If you must adjust, try 5/34/5 (for short-term use), as it reacts faster to fluctuations, but beginners can easily get shaken out. My advice: first get accustomed to the default parameters; focus on not losing before making adjustments.

Three, a real trading system consists of these four components.

If you misjudge the trend, everything is in vain.

Before opening a position, first check which side of the zero line the MACD is on: if the red bars dominate above the zero line, it’s a bullish trend, so only go long; if the green bars rule below the zero line, it’s a bearish trend, and touching a long position is just giving away money. Last year, Bitcoin stayed above the zero line for three months; how many people went against the trend and got liquidated? Going with the trend is not just talk; it's a rule for survival.

Entry points should be 'fuzzily precise.'

Don't pursue buying at the lowest or selling at the highest; after a golden cross appears, wait for the price to stabilize above the 30-day moving average before entering, even if it’s 5% above the lowest point—it’s worth it. Last year, when I traded ETH, I only acted after the golden cross and stabilization above the moving average; although I earned slightly less, I avoided 80% of the temptation traps. Remember, a fuzzy correct decision is 100 times better than an exact wrong one.

Be as decisive with stop-losses and take-profits as you are when ordering takeout.

Always set a stop-loss when opening a position, about 3%-5% from the entry point. For example, if you open a position of 10,000 U, you must accept a loss of 300-500 U. Don't be too greedy on take-profit; when the MACD histogram starts to shorten, close half of your position and set a trailing stop-loss for the rest (moving it up with the price). Last year, during the ARB surge, I used this strategy to protect 80% of my profits, which was much better than those who stubbornly held through corrections.

Capital management is the last line of defense.

Never exceed 10% of your capital for each trade; even if you're optimistic about the market, you need to keep 90% of your funds as a backup. With a capital of 30,000 U, use at most 3,000 U for each trade; even if you lose, you still have 27,000 U to recover. This approach may seem conservative, but it helped me survive the bear market in 2022, while many who were fully invested had already disappeared.

Lastly, let me share a heartfelt thought.

In trading, hard work doesn't always pay off; sometimes the more you try, the more you lose. I've seen the best retail traders make only 5 trades in a year, relying on MACD to catch major trends, earning more than those who stare at the market every day. Remember, profits are not because you are smart, but because you know how to wait—wait for the trend to clarify, wait for the signal to confirm, and wait for others to make mistakes.#加密立法新纪元 #币安HODLer空投C