Stop fantasizing about 'lying down to earn' — this is the core tool for small capital to double profits.

People often ask me: 'Can a few thousand dollars in cryptocurrency trading multiply 100 times in a year?' My answer is: Yes, but absolutely not by 'luck' or 'insider information'. In 2024, I used the capital of 1 BTC to multiply altcoins by 180 times through precise operations, and the core tool is none other than the MACD that countless people overlook.

Today we won't talk about the myth of getting rich, but rather break down the 'hardcore usage' of MACD — those practical logics that allow me to accurately time my entries and exits during volatility. Once you learn this, you can also say goodbye to 'chasing highs and cutting losses' and let small capital roll into big profits.

I. Why is MACD the 'retail investor's magic tool'?

Many people think MACD is outdated and turn to various flashy indicators. But I dare say, in the highly volatile market of cryptocurrency, MACD is the most reliable 'stabilizing force'.

It can help you see through trends: MACD is essentially a combination of 'trend + momentum', telling you more intuitively than candlesticks whether 'the market is currently accumulating for an upward move or secretly distributing'.

The signals are clear enough for beginners to grasp: golden cross, death cross, divergence... these signals are not as abstract as 'price action'; as long as you master the rules, you can quickly apply them.

Proven through practical testing: I've seen too many traders go from 'disliking MACD' to 'not being able to live without it'. It's not that the indicator has changed, but they finally understand: the complex part is not the market, but human psychology.

II. MACD Practical Application: 3 types of golden crosses to buy at the explosive point, 3 types of death crosses to escape tops without being trapped.

Don't be foolish enough to buy at every golden cross and sell at every death cross! Even with the same golden cross, the position makes a world of difference in power.

1. Golden cross: divided into 3 types, only do the 'most certain' two.

Low golden cross below the zero line: cautiously test positions! The price is below the zero line, indicating the long-term trend is still down; this kind of golden cross is often a 'rebound signal', not a reversal. For example, when Bitcoin was at $15,000, the MACD low golden cross appeared, it rebounded to $20,000 and then pulled back, chasing highs is bound to be trapped.

Golden cross near the zero line: a heavy position opportunity! The price stabilizes above the zero line, indicating a reversal of bullish and bearish forces; at this time, a golden cross is often the 'starting point for a new round of upward movement'. In 2023, Ethereum pulled back from $1800 to $1600, and the MACD golden cross appeared near the zero line, then it surged directly to $2400, which is a typical 'position increase signal'.

Golden cross above the zero line: increase positions to profit! The price is above the zero line, and the golden cross appears after a pullback, indicating 'the adjustment is over, and the main upward wave is coming'. Last year, SOL rose from $20 to $40, pulled back to $30, and the MACD golden cross appeared at a high, then shot directly to $100, which is a signal of trend continuation.

Key reminder: A golden cross must be accompanied by volume! A golden cross with increased volume is reliable, while a golden cross with decreased volume may be 'baiting the bulls'.

2. Death cross: 3 positions, when you see it, run.

Death cross above the zero line: decisively liquidate! The price is at a high, and the appearance of a death cross means 'bullish power is exhausted'. For example, when Bitcoin was at $69,000 in 2021, the MACD death cross appeared at a high, and then it crashed to $30,000, which was the last chance to escape the top.

Death cross near the zero line: stop-loss and exit! The price fluctuates near the zero line, and the appearance of a death cross indicates 'the rebound is over, and the decline is restarting'. Last year, DOT rebounded from $20 to $25, and the MACD death cross appeared near the zero line, then it fell to $10, don’t fantasize about 'it can rise again'.

Death cross below the zero line: mainly watch! At this point, the trend is already downward, and the death cross is just a signal for 'accelerated decline', don't try to catch the bottom, catching the bottom is like catching flying knives.

III. Divergence: MACD's 'ultimate killing move', with an accuracy rate of over 80% for catching bottoms and escaping tops.

If the golden cross and death cross are considered 'basic operations', then 'divergence' is the 'advanced play' of MACD — it can help you catch turning points that others cannot see.

Bottom divergence: the decline has stopped, prepare to buy. The price reaches a new low, but the DIFF line or histogram of MACD does not reach a new low, indicating 'insufficient downward momentum'. For example, in 2022, Bitcoin fell to 15,000, the price was lower than before, but the MACD histogram was higher than it was at the previous low (green bars getting shorter), this is bottom divergence, followed by a rebound to 40,000. Buying point: Don't rush to enter, wait for the 'histogram to turn from green to red' or for a 'golden cross' before buying, which increases the win rate.

Top divergence: the rise has stopped, prepare to sell. The price reaches a new high, but the DIFF line or histogram of MACD does not reach a new high, indicating 'exhaustion of upward momentum'. For example, this year, a certain altcoin rose from $1 to $3, setting a new high, but the MACD red bars were shorter than at the previous high, this is top divergence, followed by a crash to $0.8. Selling point: decisively sell when the histogram turns from red to green or when a death cross occurs, combining with candlestick patterns like 'Evening Star' and 'Gravestone Doji' makes escaping the top more precise.

IV. 3 pieces of advice for beginners to avoid 3 years of detours.

Don't stubbornly stick to the default parameters: the software's default 12/26/9 is too lagging; for short-term, it can be adjusted to 5/10/3 (quicker response), and for medium-term, use 10/20/6. Try out different settings to find parameters that fit your own rhythm.

MACD cannot be viewed in isolation: it must be combined with the trend! For example, when the price is above the 200-day moving average, the MACD golden cross is reliable; below the moving average, a golden cross may be a trap.

Tools are lifeless, but people are alive: last year I used MACD to catch multiple doubling coins, but there were also times I missed. The key is strict stop-losses, don’t let one mistake wipe out all profits.

Conclusion: Is your MACD being used correctly?

For small capital to quickly double, it's not about 'gambling', but about 'precision'. MACD is a tool that helps you improve your accuracy — but no matter how good the tool is, it still requires skill to use.#BTC☀