In March last year, my cousin quit his job with a monthly salary of 8,000 yuan and entered the market with 50,000 yuan in principal. Using a validated method, he achieved a monthly gain of 120,000 yuan after 45 days. Now, he only spends 20 minutes a day on trading and enjoys the rest of his time leisurely. This strategy of 'determining direction with monthly lines and seizing opportunities with daily lines' can turn profits into a replicable process, focusing on placing large bets on high-probability profit opportunities.
Step 1: Use the gainers list to filter out traps of capital flight.
Open the exchange's gainers list and add the cryptocurrencies that have been listed in the past 11 days to your watchlist, but exclude those that have fallen for more than 3 consecutive days. For example, in May last year, although a certain altcoin rose 40% in 7 days, it had previously experienced 5 consecutive declines, which is a typical 'pump and dump'. Entering blindly would only result in taking the bag. My cousin, during his initial screening, excluded 4 out of 12 selected coins that had records of 3 consecutive declines, ultimately retaining 8. The core of this step is to only follow funds that are in the 'accumulation phase' and stay away from those that have already started to 'disperse'.
Step 2: Determine the direction using monthly MACD and lock in the upward trend.
Check the monthly charts of the retained 8 coins and pull up the MACD indicator, leaving only those that show a 'golden cross' (the white line crossing above the yellow line). Such coins often have a large upward direction for 1-3 months. For example, the SOL chosen by my cousin showed a monthly MACD golden cross in March, and the upward trend continued; while coins with a monthly death cross tend to perform poorly. After this screening, only 3 out of the 8 coins remained, allowing one to avoid 90% of market traps.
Step 3: Find entry points based on the daily 60 moving average and wait for institutional accumulation signals.
Switch the remaining 3 cryptocurrencies to daily charts and pay attention to the 60-day moving average (the cost line for most institutions, the 'backbone' of the market). When the coin price pulls back near the 60-day moving average and the daily trading volume reaches more than 3 times the average volume of the previous 5 days, it is a signal for institutions to increase their positions, and one can enter heavily. My cousin once invested 70% of his principal when this signal appeared for ETH; due to the upward trend and precise entry point, the winning rate was extremely high.
Step 4: Follow the rules for profit-taking and stop-loss to let profits grow and losses stop.
Take profits in three batches: sell 1/3 when it rises by 30% to recover part of the principal; sell another 1/3 when it rises by 50% to secure some profit; hold the remaining 1/3 until the coin price falls below the 60-day moving average to maximize profits. When my cousin traded ETH, he made a 20% profit on the first two batches, and the remaining 1/3 earned another 15%, totaling a 55% profit.
The stop-loss has a 'lifeline clause': if the price falls below the 60-day moving average the next day after buying, sell all regardless of profit or loss. He once decisively left the market when DOT fell below the 60-day moving average the next day, losing 2%. Subsequently, that coin dropped by 30%, successfully preserving the principal.
This method has been validated over 3 years, going from earning 30,000 a month to consistently achieving six-figure profits. The key is to simplify the market and clarify the steps: use the gainers list to filter out active coins and avoid selling pressure, determine the upward trend with monthly MACD, find entry points with daily 60-line signals, and follow rules for profit-taking and stop-loss. If a newcomer can master this skillfully, they can avoid blind trading and steadily profit in the cryptocurrency market. It is recommended to save this and practice with candlestick charts; you will find that steady profits are easier than chasing gains and cutting losses. Remember, the cryptocurrency market is not short of opportunities; it lacks the ability to seize opportunities and to pull back in time. This method was created precisely for that purpose.