I know an old mentor who entered the crypto market with 100,000 yuan and currently has a market value of 42 million. He once told me a sentence that enlightened me: 'The crypto market is filled with a crowd of fools; just control your emotions, and this market becomes an ATM!'
Struggling in the crypto space, your trading strategy is your 'secret weapon.' The following mnemonic devices are the crystallization of practical experience, so be sure to save them!
Entry section: Test the waters in the crypto space, prepare to enter; proceed steadily into the market, avoiding rashness.
Sideways section: Buy during low sideways trading, it's the right time to accumulate positions; during high sideways trading, decisively sell without hesitation.
Volatility section: Sell at highs, buy fast at dips; observe sideways trends, reduce trading. Sideways means to hold tight, for a rise may be just around the corner; be alert for a sudden drop during rapid increases, ready to secure profits; slow declines are perfect times for gradual averaging down.
Timing for trading section: Don't chase highs, don't buy when it dips; don't trade during sideways movements. Buy on bearish candles, sell on bullish candles; contrarian trading can help you stand out. Buy after a significant drop in the morning, sell after a significant rise in the morning; don't chase highs after a big rise in the afternoon, buy after a big drop in the afternoon the next day; don't panic sell after a big drop in the morning; if the price remains unchanged, take a break; average down for breakeven, and excessive greed is not advisable.
Risk awareness section: Calm lakes can lead to high waves; significant surges must be followed by corrections, and candlesticks may show triangular formations over several days. In an upward trend, look for support; in a downward trend, look for resistance. Over-investing is a major taboo; stubbornness is unwise; in the face of uncertainty, know when to stop and seize the right moment to enter and exit.
Trading cryptocurrencies is essentially about managing mindset; greed and fear are the greatest enemies. Be cautious with chasing highs and cutting losses; maintaining a calm mindset leads to comfort.
In addition to mnemonic devices, I have also compiled several highly practical trading methods, which can benefit both novice traders and seasoned players.
Oscillation trading method: Most market movements are in oscillating patterns. Utilizing high sell-low buy within the range is the basis for stable profits. Use BOLL indicators.
And box theory, combining technical indicators and chart patterns to accurately identify resistance and support. Follow short-term trading principles, and avoid greed.
Breakout trading method: After a prolonged consolidation, the market will choose a direction. Entering after the breakout can yield quick profits, but it requires precise breakout identification.
Unilateral trend trading method: Market breakthroughs will form unilateral trends. Trading with the trend is key to profitability. Enter trades during pullbacks or rebounds, referencing candlesticks, moving averages, BOLL, trend lines, and other indicators to masterfully navigate the market.
Resistance and support trading method: When the market encounters key resistance and support levels, it often faces obstacles or receives support. Entering trades at this time is a common strategy.
Utilize trend lines, moving averages, Bollinger Bands, parabolic indicators, etc., accurately judge resistance and support levels.
Pullback and rebound trading method: After significant rises or falls, brief pullbacks or rebounds will occur. Seize the opportunity to profit easily. This mainly relies on candlestick patterns, and good market intuition will help you accurately grasp highs and lows.
Time-based trading method: Morning and afternoon sessions have low volatility, suitable for conservative investors. Although the time to profit from trades is long, the market is easier to grasp; evening and early morning sessions have high volatility, suitable for aggressive investors, allowing for quick profits but with higher difficulty and strict requirements for skills and judgment.
Stay tuned to the homepage, and you will surely gain insights. Helping others is akin to helping oneself. I hope that regardless of how the market changes, we can continue to walk together, and ten years later, we can still smile at the crypto space.
Trend follower's secret: Lock in a tenfold opportunity over ten years.
Focusing on the wealth code of long-term trends:
Halving cycle layout: 180 days before Bitcoin's halving event, pre-allocate BTC, BCH, and other halving coins, holding them until 30 days after the halving.
Leading coin rebound law: When the leading coin in the market rises by 200%, prioritize selecting second-tier coins in the same sector that have risen by less than 50%.
Technical triple verification: Weekly MACD golden cross + daily breakout from the range + hourly volume increase with a bullish engulfing candle, forming a golden buying point.
Institutional holding analysis: Glassnode data shows that when large addresses continue to increase their holdings, combined with a surge in on-chain transaction volume, it serves as a startup signal.
Bear market dollar-cost averaging strategy: Invest a fixed 10% of principal monthly, choosing blue-chip coins like BTC and ETH, with over 300% returns after 12 months of continuous investment.
Risk warning: The above strategies need to be adjusted according to real-time market conditions. It is recommended for beginners to verify using a demo account and ensure that any single trade loss does not exceed 2% of total capital. The market is risky, and investment requires caution.
Welcome to follow the homepage, where you can learn and exchange in real trading, as well as clearly understand the market direction and strategies. Regardless of the market's style, knowing in advance allows for better mastery!
1. Introduction.
At this current stage, you may have mastered a wealth of knowledge on various chart patterns, such as double bottom patterns, ascending triangle structures, and inverted head and shoulders patterns, as illustrated in the following diagram.
However, as you understand, not all chart patterns will consistently prove effective. In this scenario, what measures should you take when these chart patterns fail to achieve the expected results? As illustrated in the following diagram.
As the scope expands further, how will you take action? As illustrated in the following diagram.
At that time, what kind of trading activities do you plan to engage in the market? As illustrated in the following diagram.
It is at this moment that the triple bottom pattern reveals its unique application value, as illustrated in the following diagram.
The triple bottom pattern is one of the rarer chart formations in the current market. However, in the face of market volatility, it remains an indispensable tool in a trader's toolbox.
In this guide, you will learn the following:
(1) A detailed guide to the operational mechanism of the triple bottom pattern.
(2) How to avoid misjudging the triple bottom pattern (and the appropriate measures to take in this situation).
(3) Correct trading and analysis methods for the triple bottom pattern.
(4) A step-by-step procedure on how to accurately define and execute triple bottom trades.
2. What is a triple bottom and the truth about how it works.
The triple bottom pattern resembles a talented superstar, who steps onto the market stage with its unique talent. It begins at the neckline, which supports the entire structure, as illustrated in the following diagram.
Subsequently, in the dazzling complex performance presented by the market, the three bottoms emerge sequentially, each playing an indispensable role in this engaging pattern, as illustrated in the following diagram.
This is like a meticulously choreographed synchronized dance, standing out due to its eye-catching nature, and laying the foundation for potential trading opportunities. This pattern is indeed easy to identify.
Now that you understand how the pattern looks, how is the triple bottom pattern formed? If you are pondering this question, then you are moving in the right direction, as understanding 'why' it happens is often more critical than merely knowing 'what' happens.
In this guide, we mainly explore the following three reasons leading to the formation of triple bottom patterns.
(1) Market indecision.
Imagine the market as a changeable individual, whose decision-making process is indecisive, similar to a friend who can never decide on a restaurant or movie choice. Thus, the triple bottom pattern emerges, resulting from the market's indecisiveness leading to instability, as illustrated in the following diagram.
Just as the market seems to say: I cannot decide which path to choose, have you observed how the price range is continually expanding in the previous example? This is like a paused moment of confusion, yet it offers traders like us the opportunity to capitalize on the impending market decision. Thus, we are essentially discussing how the triple bottom pattern is a direct product of the market's indecision.
(2) Development takes time.
This pattern tends to develop gradually with its unique rhythm; however, this only makes it like a carefully slow-cooked dish, with the waiting process being worthwhile, much like watching a suspense movie where knowledgeable viewers can foresee the climax. The market tests your patience, teasing you with its delicate fluctuations. For those willing to wait patiently and observe closely, the triple bottom pattern provides an opportunity that may lead to substantial profits. Therefore, remain calm and let this pattern reveal its enticing trading opportunities at the right time. In fact, to further elaborate on this principle, you can effectively utilize the triple bottom pattern under the following conditions.
(3) You missed the double bottom pattern.
If you missed the double bottom pattern, as illustrated in the following diagram.
You need not toss and turn in regret, for the triple bottom pattern can turn the situation around for you, bringing another opportunity to participate in the market, as illustrated in the following diagram.
This is akin to unexpectedly discovering a hidden treasure chest in despair, believing that all hope was lost. This pattern thus provides an additional entry opportunity.
Now, I understand that trading double bottom patterns may seem more attractive, but the key lies in your ability to seize the opportunity. For cautious traders seeking more confirmation, closely monitoring the triple bottom pattern is worthwhile. It is a pattern that can bring redemption, excitement, and substantial profits, adding value to your trading charts. Now that you understand the appearance and operational mechanism of the triple bottom pattern, I will now explain under what circumstances you should not trade this pattern. Remember, all trading patterns have their own advantages and limitations.
3. The biggest mistake when trading triple bottoms: Avoid these traps.
(1) Mistake 1: Trading in the middle of the triple bottom pattern.
First, trading within the price range feels like trying to fit into overly tight jeans, inevitably uncomfortable. Remember, the triple bottom pattern typically forms in situations of market indecision, where market behavior resembles a child faced with numerous tempting choices in a candy store, hesitating. Therefore, resist the impulse to frequently enter and exit trades during the pattern formation; instead, patiently wait for the market to make a clear decision.
In summary, avoid trading during the intermediate stages of the pattern establishment, as illustrated in the following diagram.
Focus your attention on the value area, namely the so-called support and resistance levels, as illustrated in the following diagram.
(2) Mistake 2: Blindly trading highs and lows.
What does this mean? Shouldn't we avoid trading in the middle of the triple bottom pattern and even avoid trading highs and lows? You should know that the triple bottom pattern is known for its frequent false breakouts, as illustrated in the following diagram.
This is due to the inherent characteristics of range-bound markets, which expand and contract. A triple bottom may even evolve into a quadruple bottom, like a prankster lurking in the shadows, ready to jump out and give you a scare. Therefore, do not blindly chase price peaks and troughs like an ignorant squirrel; instead, wait for the market to confirm before trading, which means you should patiently wait until the actual breakout occurs after the third bottom, as illustrated in the following diagram.
And it should be confirmed when the price closes within that range, serving as an effective confirmation of the formation of the third bottom, as illustrated in the following diagram.
Therefore, reaching high and low prices does not constitute a sufficient reason to trade immediately. Instead, you should remain alert and wait for necessary additional confirmation signals.
(3) Mistake 3: Using double bottom patterns to judge market direction.
Now, let’s clarify one point to correct a common misconception. Although the triple bottom pattern may play a key role in the market, it does not possess the prophetic ability to predict market direction. This means that even if you identify a triple bottom pattern, the market is not necessarily obligated to break out to higher levels. The following scenarios may also occur, as illustrated in the following diagram.
This is akin to expecting to predict tomorrow's lottery numbers through a crystal ball, which is nearly impossible. Therefore, one should not solely rely on the triple bottom pattern to determine the subsequent market direction. Instead, a comprehensive analysis of other relevant factors is essential, viewing the triple bottom pattern as one of the auxiliary tools rather than the sole decision-making indicator.
(4) Mistake 4: Over-reliance on 'textbook-style' triple bottoms.
When discussing the triple bottom pattern, do not overly cling to the definitions found in traditional textbooks, as illustrated in the following diagram.
This pattern is like a chameleon, changing shapes with each turn, bringing new surprises, indicating the existence of various effective triple bottom variants, just as you have previously observed, as illustrated in the following diagram.
And this, as illustrated in the following diagram.
Therefore, let go of rigid expectations for the pattern and appreciate the beauty of its form diversity. The key lies in those 'sharp bottoms' you identify on the chart.
Now, you may be pondering: I already know how to recognize this pattern and the behaviors to avoid while trading, how should I proceed with trading? If this is your question, now is the time to showcase your trading skills, as I will reveal to you the three key market trends to focus on when trading the triple bottom pattern.
4. Ideal strategies for achieving success in trading the triple bottom pattern.
(1) Ensure the triple bottom is within the existing upward trend.
By ensuring your trading actions are in alignment with the current market's upward trend, as illustrated in the following diagram.
You are increasing the probability of trading success and aligning with the market's rhythm, focusing on this upward trend, just like an experienced dancer seeking the ideal partner, ready to gracefully rotate and immerse themselves in the unfolding triple bottom pattern.
(2) Look for false breakouts or accumulation.
When you observe a false breakout at the third bottom, as illustrated in the following diagram.
This is akin to noticing your dance partner pretending to be tired on the dance floor, only to then spring back to life with their talent. It signals that the pattern is primed and ready to take center stage in the market, as depicted in the following diagram.
From another angle, if you have encountered the following situations: missed the entry timing for the double bottom pattern or missed the trading opportunity from a false breakout of the triple bottom pattern, do not worry, for opportunities still await you, because if you observe a price accumulation phenomenon at the highs, as illustrated in the following diagram.
This is akin to witnessing the moment just before an electric elevator starts. This phenomenon indicates that the triple bottom pattern is preparing for a potential energy-rich breakout, as illustrated in the following diagram.
Therefore, please keep an eye on these cutting-edge market trends and be ready to showcase your trading abilities on the market stage. At this stage, you have mastered all the necessary key elements to successfully execute trades based on the triple bottom pattern. However, as you well know, the effectiveness of these tools depends on how you apply them. If you have been trading similar double bottom patterns for a long time, you are well prepared. However, if you seek a clear guide on how to utilize the triple bottom pattern for market discovery, trading, and trade management, please continue reading the following content of this guide.
5. Mastering the triple bottom: A trading strategy that lets you dance in profits.
(1) Step 1: First determine the upward trend within the daily time frame.
View it as discovering an ideal rhythm, laying the foundation for an engaging performance, exploring those continuously rising highs and lows that symbolize a strong upward trend, as illustrated in the following diagram.
Once you confirm this upward trend, move on to the next stage, closely following the market's rhythm.
(2) Step 2: Identify potential triple bottoms within the 4-hour time frame.
At this moment, please shift your observation focus to the 4-hour chart, where potential triple bottom patterns will appear vivid. Compare this process to dance choreography, where each step carries a specific goal, identifying the triple bottom pattern, which consists of three different bottoms connected by a neckline, as illustrated in the following diagram.
This is akin to observing a group of dancers synchronizing their steps, weaving an eye-catching pattern on the dance floor. Once you recognize this masterpiece of the triple bottom pattern, you should begin preparing for precise trading entry.
(3) Step 3: Trade the false breaks at the three points.
This is similar to executing a stunning spin or swiftly changing direction on the dance floor, leaving all spectators in admiration. When the market briefly drops below the third bottom and then quickly rebounds, as illustrated in the following diagram.
This is a sign that the pattern is primed and ready to become the focus of the market. Therefore, like an experienced dancer, join the trade in line with this momentum, showcase your trading skills, and seize the market opportunity, as illustrated in the following diagram.
Timing is crucial. Patiently wait for that false breakout to occur, and quickly take action.
(4) Step 4: Reduce position size at the neckline.
At this moment, it is time to enhance your trading performance. You may wonder: how to achieve this? By gradually reducing the trading size near the neckline, as illustrated in the following diagram.
View it as a grand upgrade in dance choreography, where energy surges to new peaks. When the price decisively crosses the neckline, it signals that the triple bottom pattern is about to unleash its full market potential. In this situation, how should you act? Simply put, you should increase your position size, expanding on your initial trade to maximize your profit potential, as illustrated in the following diagram.
This is like the crescendo in a musical piece, the key here is that this breakout provides investors with the opportunity to ride the wave of victory.
(5) Step 5: Use a 20-period moving average to track stop losses.
Now that you have ventured into this field, how should you manage it? In this case, I recommend using a 20-period moving average as a tool for tracking stop losses, as illustrated in the following diagram.
This indicator acts like a trusted dance partner, ensuring your safety on the trading stage. As prices move in your favor, use this dynamic indicator to adjust your stop loss position, safeguarding your profits from being compromised, as illustrated in the following diagram.
Here are other key points you should understand. You always have the right to choose between the 3rd and 4th stages. For traders inclined to take on higher risks, you can choose to trade between the 3rd and 4th stages; if you are a more conservative trader, you can choose to enter the market when the price breaks the neckline (i.e., at the 4th stage). If your trading style is somewhere in between, you may consider taking action at the 3rd stage, not reducing your position but expanding laterally at the 4th stage.
Therefore, put on your trading 'battle boots', practice these steps, and let this simple triple bottom strategy become your ticket to trading success.
6. Conclusion.
The following is a summary of the core points of this guide:
(1) The triple bottom pattern provides a second entry opportunity for traders who missed the double bottom opportunity.
(2) It consists of a neckline and three different bottoms, typically forming during periods of market indecision and requiring some time to develop.
(3) When trading triple bottoms, avoid common mistakes, such as trading within the price range and overly relying on textbook patterns.
(4) The best trading method is to align with the existing upward trend of the market and watch for false breakouts at lows or price accumulation at highs.
(5) A simple trading strategy includes identifying upward trends, discovering triple bottom patterns, trading false breakouts, adjusting position size upon breakouts, and using a 50-period moving average as a tool for tracking stop losses.
Simple and practical tips for trading cryptocurrencies that ensure steady profits.
1. Invest in batches: Suppose you have 10,000 yuan, divide it into five parts, and only use 2,000 yuan for each trade.
2. Test investment: Start with 2,000 yuan to buy a coin to test the waters.
3. Average down after a drop: If the coin price drops by 10%, invest another 2,000 yuan to average down.
4. Take profit when it rises: If the coin price rises by 10%, sell a portion promptly to lock in profits.
5. Repeated cycle: Continuously buy and sell until funds are exhausted or the coins are sold out.
Strategic advantage: The benefit of this strategy is that even if the coin price declines, you can remain calm. By entering in batches, you avoid the risks of a lump-sum investment. Even if the coin price drops by half, you are only gradually increasing your position. Each time you sell, you can lock in a 10% profit. For example, if you have 100,000 yuan and invest 20,000 yuan each time, you can earn 2,000 yuan each time.
If you are also a tech enthusiast studying technical operations in the crypto space, feel free to follow me, and you will gain the latest crypto intelligence and trading skills!
The old expert only does real trading; the team still has spots available for quick entry.
