Ten years ago, I just entered the market. I incurred huge losses and was over 3 million in debt in the first three years. After self-adjustment, I achieved financial freedom in the next seven years, with stable compound interest, a monthly income in seven figures, and an annual income in eight figures!

Success is by no means accidental. Every successful person has gone through countless trials and walked step by step to achieve success. It cannot be denied that some people are born geniuses, but such people are very rare, neither you nor I are among them. Most people, after experiencing continuous failures, gradually move towards perfection. It is precisely these experiences of failure that yield many insights that shortcuts cannot provide.

A common saying is that there are no good opportunities; in reality, opportunities are reserved for those who are prepared. Only when opportunities arise can one be ready to seize them firmly. Waiting passively, like waiting for a hare to bump into a tree, will lead to either missing out or failing to grasp the opportunity when it truly presents itself.

Let me first share a simple yet very effective cryptocurrency trading strategy!

First Rule: Keep a close eye on the trading fluctuations of Bitcoin. Generally, Bitcoin serves as a barometer for other altcoins in the cryptocurrency market. There are relatively few altcoins with strong conceptual logic, like Ethereum, which can sometimes deviate from Bitcoin's influence and show unilateral trends. Most altcoins cannot escape Bitcoin's influence.

Second Rule: Trading must seize the golden moment. From midnight to 1 am is the easiest time to encounter the 'golden line' phenomenon. Those looking to snag a bargain can place a super low buy order before sleeping or set a desirable selling price to earn while lying down. You might just make a deal, as this is when the trading volume is low in most parts of the world, and anything can happen.

Third Rule: Grasp the price trend of the intermediate currency USDT. Generally, USDT and Bitcoin move in opposite directions. If one day you notice USDT rapidly increasing, you should immediately be wary of a Bitcoin crash; conversely, when Bitcoin rises, it is a golden low point to buy USDT.

Fourth Rule: Pay attention to the financial news from central banks around the world every day. The most important influencing factor in the cryptocurrency market is the attitude of various governments towards Bitcoin. If there are crackdowns or controls, the market will generally experience a downturn; additionally, the impact of US financial policies is also significant, such as the recent news about taxing the wealthy.

Fifth Rule: Pay attention to several key time periods, which can reduce risks and increase profits. Every day from 6 am to 8 am is a crucial point for judging buying and selling. It is also the time basis for judging the ups and downs of the day. If from midnight to 6 am there is a continuous decline, and this period is still declining, it is a buying or averaging opportunity. The day will likely rise. Conversely, if from midnight to 6 am there is a continuous rise, and this period is still rising, it is a selling opportunity. The day will likely decline.

Sixth Rule: Black Friday. There is a saying in the cryptocurrency world about 'Black Friday,' where Fridays often see significant declines, but there can also be sideways movement or sharp increases. It's not very accurate; just pay attention to the news.

Seventh Rule: Trading volume is the lifeline of cryptocurrencies. If a cryptocurrency with a certain trading guarantee declines, there's no need to worry; holding it patiently will definitely lead to a return. The short-term might take a week, while the long-term could take about a month. If you have extra USDT, you can average down by buying in batches, which will help you break even faster. If you don't have extra money, just wait; it won't disappoint you.

Eighth Rule: Do not trade frequently. Holding a certain cryptocurrency for the long term usually yields much better returns than frequent trading, which mainly tests your patience.

Trading is a long-term practice. To make a living from trading, you must follow the rules and build your own trading system!

Here comes the key! Next, I will share the use of K-line moving averages. We all know the importance of K-lines in the stock market, and in the cryptocurrency market, these K-line theories are only applicable to a part; not all indicator analyses are useful in the cryptocurrency market. Although the accuracy of K-line techniques is not 100%, and many K-line knowledge may seem not very useful after learning, in fact, according to the experiences of many experts, K-line techniques still play a key role in long-term analysis of cryptocurrency prices. Regardless of the direction in which the price is heading, it will be reflected in trading. We can use these techniques to understand price movements; K-lines are about probabilities, guiding you to a brighter path when you feel lost.

Without further ado, let's get to the point.

Today we mainly focus on basic indicator strategies:

1. Usage and Setting of Moving Averages

2. RSI Indicator Usage; 3. Value Investment.

1. How to use moving averages to judge trends.

1. First, let's learn how to set indicators.

Due to some updates in the settings on Huobi, if friends can't find it, you can directly click on the line with the mouse.

You can see these lines and directly click on the line to change it.

After clicking here, change it directly. The moving averages we will use are: 5-day, 30-day, 60-day, and 120-day moving averages. If you find them ineffective, you can even change the 5-day to a 4-day moving average for a more agile market response.

2. Short-term Moving Average Indicator: The 5-day Moving Average Strategy.

The 5-day moving average is commonly used in short-term trading. What is the 5-day moving average? It is the sum of the closing prices over five days divided by five. The system is usually set to a weekly basis, which is essentially the average price over a week; however, a week is too long, and the reflection is relatively slow. Of course, some experts use a 4-day moving average, etc., which can also be displayed intuitively through settings. The 5-day moving average is the most practical for short-term judgment.

The 5-day moving average represents the average holding price over five days, indicating the buying and selling signals within those five days, which is the range people can bear. This is the average holding cost. The same logic applies when changing moving averages.

Usage: In a bull market, when the price retraces to the 5-day moving average, it is time to increase positions (if it quickly breaks below, one should observe); in a bear market, when the price drops below the 5-day moving average, one should sell quickly. As long as it doesn't break below the 5-day moving average, there shouldn't be much of a problem. In a consolidation period, one can look at the 1-hour and 4-hour lines, which is the short-term use.

This theory requires more exploration, as very few people will tell you. You will encounter many problems in practice, which require multiple verifications. Undoubtedly, the 5-day moving average strategy is very useful in practice and is one of the indicators that short-term experts rely on.

Why use the 5-day moving average? Because there is a saying: one day in the cryptocurrency world equals one year in real life. The market reacts very quickly. If you use a conventional 7-day moving average, it will be relatively slow and unable to keep up with market changes. We all know that the cryptocurrency market has no limit on price fluctuations and trades 24 hours a day.

If you use the 5-day moving average as a judgment standard, when the price reaches the 5-day moving average, it will form a support level. If it sells, it will break below the 5-day moving average. If you want to wait until it returns to the cost price, you will have to wait, and this point will form a support level.

It shows that the current price still hasn't reached the 5-day moving average, and there are still many uncertainties. At this time, we need to use the hourly and four-hour lines.

Practical Summary: This strategy mainly focuses on short-term indicators. When approaching the moving average, which is the cost price for everyone, selling pressure will decrease, and the price will relatively rebound. If it deviates too much from the moving average, the probability of adjustment will increase, mainly because investors will choose to arbitrage, leading to a price decrease.

3. The combination of the 30-day and 10-day moving averages for short-term strategies:

The 30-day moving average is also a short to medium-term strategy. If you are not very fond of trading, we recommend this strategy to you.

Same old rule, if previously set: 5-day, 30-day, 60-day, and 120-day moving averages, just change the 60-day moving average to the 10-day moving average. Because this set of indicators only requires the 10-day and 30-day moving averages.

This set of indicators is quite simple: sell when it breaks below the 10-day moving average and buy when it breaks above the 30-day moving average. Set the time to one hour, as shown in the diagram.

This theory is similar to the 5-day moving average. The 30-day moving average indicates the short to medium-term trend. Setting it to one hour turns it into a short-term buying point. If it breaks below the 10-day moving average, a short-term downward channel opens. This combination has great significance in practical trading.

4. Medium to long-term strategies: 60-day and 120-day moving averages.

This chart shows the EOS price trend. It is said that some investors trade the bottom using the 60-day moving average a few times each year for stable investments. This method is suitable for those who do not have time to operate.

Speaking of the 120-day moving average, it is the dividing line between bull and bear markets.

So how to use the 120-day moving average for investment?

This is the previous technical chart, and according to the current market situation, it has never crossed the 120-day moving average. The usage of the 120-day moving average is actually a technical indicator for judging long-term trends. In daily trading, it is also a reference basis. This bear market has not yet ended, and once it crosses the 120-day moving average, it is an indicator for judging the arrival of a bull market.

We often see that the so-called support and resistance levels mentioned by various experts are essentially just moving averages. When analyzing large trends, those who invest in the long run should not focus solely on the 5-day moving average strategy. The key moving average for bull-bear transitions is mainly the 120-day moving average.

5. Box waves look at pressure and support.

This is derived from Elliott Wave Theory, which provides a good explanation of wave trading. Many newbies have swept through the stock market for years using this theory, but its practicality is uncertain. After all, seeing is believing. Here, we will briefly introduce box wave support and resistance levels.

When the price of a cryptocurrency runs within a certain box, the waves formed have their highest points on a line, which is the resistance level, while the bottoms of the waves connect to form a line representing the support level. The general judgment is that a breakthrough may lead to a higher surge. In such cases, how to choose? The key point comes from the fundamentals, such as releasing positive news or significant capital entering the market, which can lead to a wave of trends. The other scenario is a breakout followed by consolidation, which is also quite common, indicating that funds lack the strength to push up or that selling pressure is too great. At this time, caution is required. Of course, such spans can be quite large and can only serve as a reference.

Using box waves to look at each low and high point to judge support and resistance is a fairly common analytical method. It is simple but not very accurate. You can explore in daily practice or refer to wave theory technical books. Honestly, I have read several good wave books, but their effectiveness in real-world practice is not very strong. However, that doesn't mean others won't get good results after reading; everything still relies on practical exploration. I prefer practical techniques over conceptual ones; what do you think?

6. RSI bottom-buying and top-selling rules.

The RSI is also an old technical indicator in the stock market, and it works particularly well as a reference in the cryptocurrency market.

The RSI indicator represents a level of strength, calculated from the statistics of price increases and decreases.

The principle of the RSI indicator, simply put, is to calculate the strength comparison between buyers and sellers numerically. For example, if there are one hundred people buying a cryptocurrency, sixty are buying while forty are selling, the price will rise.

So how is it used? 80-100 is extremely strong sell; 20-50 is extremely strong buy; weak observation 0-20, which is extremely weak buy. Once it reaches a golden cross, it becomes a buy or sell point.

Note that if it reaches 80, there is a significant risk of a pullback. So when should you sell? Sell at the moment it drops below 80. The RSI technique has been market-tested since its research began in 1978 and has continuously been used, demonstrating its reference value. In the emerging cryptocurrency market, this set of indicators can also effectively lead you to victory.

Short-term waves can be operated on the one-hour line to achieve wave top escape.

Summary: Let's review the five technical indicators we talked about today: the 5-day moving average strategy, the combination of 10-day and 30-day moving average indicators, the role of the 60-day and 120-day moving averages in medium to long-term strategies, the support and resistance levels of box waves, and the RSI bottom-buying and top-selling rules. The above reference indicators are quite simple, but in practice, the simpler the reference indicator, the easier it is to use. In practical investment, we have introduced five technical methods for trading cryptocurrencies, and through practical investment, I believe there will always be one that can bring you a different investment experience, and one that can become a powerful tool on your investment journey.

No matter how diligent a fisherman is, he won't go out to sea to fish during the stormy season; instead, he carefully protects his fishing boat. This season will eventually pass, and a sunny day will surely come! Follow Yan An, and you will be taught both fishing and how to fish. The door to the cryptocurrency world is always open; only by going with the flow can you lead a life of success. Keep this in mind!