I have earned around 4 million with a capital of 50,000. I have never worked after graduating from college.
I've just been playing in Kunming and Dali, not buying houses or cars. Monthly expenses are around 1500.
How I made money:
1. Capital of 50,000, doing projects in college, affiliate marketing, manipulating orders, delivery, app crowd-funding, various small tasks, accumulated 50,000.
2. Entering the crypto space, I think BTC is too expensive, so I keep playing ETH, which has leverage, and then there's the altcoin spot. Choose coins and manage positions well. Just keep executing this simple idea; if the market is bad, lose a little, and when the market comes, profit a lot.
Why enter the circle:
If you want to change your destiny, you must give the crypto space a try. If you cannot make money in this circle, ordinary people will have no opportunity in their lifetime.
I am still relying on cryptocurrencies to make money. Once you have an epiphany in trading, it feels like you have a cheat code. Last year, starting with 200,000, I played to 20 million now, easily achieving a hundredfold profit! The method used is as follows:
Continue executing like this in crypto trading! Making a million is achievable.
The core message is: leverage contract trading to amplify profits!
For example, with a capital of 5000, first convert 2000 of it into 300U (approximately equal to 300U), and we will proceed in two steps:
Step 1: Small capital snowballing (300U to 1100U).
Every time take out 100U to play, choose the most popular coins recently. Remember two things:
1. Run away once you double your profits (for example, turning 100 into 200, immediately take it out). 2. If you lose down to 50U.
Just cut losses. If luck is on your side, winning three times in a row can roll into 800U.
(100-200~400~800). But take your profits! Play a maximum of three rounds; stop when you earn around 1100U. This phase relies heavily on luck, so don't be greedy!
Step 2: When you have more money, start using combo punches (starting from 1100U).
At this time, play with three different strategies:
1. Quick in and out type (100U)
Only trade 15-minute ups and downs, focusing on stable coins like Bitcoin/Ethereum. For example, if I see Bitcoin suddenly surge in the afternoon, I will quickly follow suit, making a profit of 3%-5% and then running away, similar to street vendors, with small profits and high volume.
2. Zen-style regular investment (15U per week).
Each week, consistently put aside 15U to buy Bitcoin contracts (for example, now at 50,000 dollars, you think it can rise to 100,000 in the long term). Treat it like a piggy bank; don’t panic if it drops, just wait for half a year to a year, suitable for those who don’t have time to monitor the market.
3. Major trend trades (put the rest in)
Make sure to strike hard when the market moves! For example, if you discover that the Federal Reserve is about to cut interest rates, Bitcoin may soar, directly opening a long position. But you must think ahead: how much to earn before running away (e.g., doubling), and how much to accept as a loss (maximum 20%). This requires being able to read news and understand technical analysis; beginners should not act rashly!
Important reminder:
1. Bet a maximum of 1/10 of your capital each time; don't go all in!
2. Each trade must have a stop loss!
3. Play a maximum of 3 trades per day; if you feel the urge, just play games.
4. Withdraw profits once you reach your target; don’t think about 'making another wave'!
Remember:
1. Buy coins when Bitcoin is above MA20 on the weekly chart, choosing two to three new coins, especially hot coins during the bear market, like APT before it surged. As long as Bitcoin rises a bit, it can take off, like OP. Just remember to have momentum and a story to tell.
2. If Bitcoin breaks below MA20, stop loss. Continue to make money during the buying or waiting period. Give yourself two to three chances to fail. If you have a deposit of 20,000, invest 10,000, and you can fail three times.
3. If you bought this cryptocurrency like APT, sell it at around 4-5 times. Continuously execute strategies; remember you are using small funds, and you must buy new coins. Don’t buy ETH or BTC. Their price increases cannot support your dreams.
4. If the bear market begins to transition into a bull market, achieving three times 5 times profit, it can reach about 125 times. This period can be as short as one year or as long as three years. You have three chances to fail; if you fail all three times, it means you lack the ability, so steer clear of this circle and investment, and avoid falling into contracts. In summary, remember to enter when you should, stop loss when you must, and have patience.
5. It’s normal to make losses and profits in trading; don’t let temporary gains or losses affect you. Keep a calm mind to see through the details!
I will share a set of my practical strategies that have achieved an average win rate of 80%, which is quite a rare achievement in the crypto trading field.
There is a simplest method of trading cryptocurrencies that keeps you 'always profitable,' making it possible to earn 30 million! This method achieves an 80% win rate! Indicators you must know for crypto trading: [Moving Average + Narrow Range Resonance Strategy] skyrockets the win rate by 300%!
Many price action traders are familiar with various candlestick patterns; however, not many understand the application of narrow-range candlesticks. Narrow-range candlestick patterns can provide insights into future price behavior, making them important price action signals to study alongside candlestick patterns.
We will study three types of narrow-range (NR) candlestick patterns. These include NR4 candlesticks, NR7 candlesticks, and NR4/ID candlesticks. All three patterns can provide reliable trading opportunities as they help us capture the next likely price movement after a consolidation period.
Introduction to narrow-range candlesticks.
The concept of 'narrow-range candlestick' was popularized by Toby Crabel, known as the 'most famous counter-trend trader,' in his excellent work (Day Trading: Short-Term Price Patterns and Opening Range Breakouts).
Several other commodity traders have also expanded on the concepts he initially discussed in his book. Among the more well-known authors are Linda Bradford Raschke and Lawrence Connors, who co-authored (Street Smarts: High-Probability Short-Term Trading Strategies).
Essentially, the idea behind narrow-range candlesticks is that trending days or multi-day trends often emerge after a period of contraction, which can be easily observed and quantified on the price chart.
Although the original concept of narrow-range candlesticks is applied to intraday trading strategies, I find their application in swing trading equally useful.
The narrow-range candlestick strategy is a simple breakout strategy that enters a long position at a predefined high and a short position at a predefined low. These predefined levels are typically the highs and lows of the narrow-range candlestick pattern.
The biggest advantage of this strategy lies in its simplicity. Although it is very easy to execute a narrow-range candlestick breakout, they are still highly effective patterns when traded correctly.
There are three main variants of the narrow-range candlestick breakout strategy: NR4 breakout, which breaks out from the narrowest candlestick over the last four days. The second variant is the NR4/ID setup, which involves breaking out from the narrowest range candlestick over the last four days, which is also an inside bar.
The last variant of this strategy is the NR7 breakout, which is essentially the same as the NR4 breakout, but in the case of NR7 we will look for breakouts from the narrowest range candlestick over the last seven days.
In addition to the different narrow-range patterns, traders can also filter setups in various ways for optimal results. One filter commonly used alongside narrow-range candlestick setups is a trend filter.
Trend filters only allow trades where the long-term trend is consistent with the direction of the narrow-range breakout. One of the more effective trend filters that can be combined with this strategy is the moving average.
We will take a more detailed look at the three different variants on the price chart and discuss a method for filtering and trading these narrow-range candlestick setups.
Trading NR4 candlesticks.
A narrow-range 4 (NR4 candlestick) is the narrowest trading candlestick over the past four trading days. Thus, the NR4 pattern consists of a total of four candlesticks. The range of the fourth candlestick or the last K-line will be smaller than the range of each of the previous three candlesticks. Let's take a look at how the NR4 pattern performs on the price chart.
In the chart above, you can see the price action of the last four candlesticks marked on the chart. If you observe closely, you can see that the last candlestick, the fourth K-line, has a range smaller than the first three (1 to 3 candlesticks). Therefore, the fourth candlestick constitutes an NR4 candlestick and validates the pattern.
The process of finding NR4 setups is relatively simple. First, you need to check the high and low data of each of the last four candlesticks. This will allow you to calculate the high-low range of each candlestick.
Then, you will compare today's range with each of the ranges of the previous three candlesticks. If you find that today's range is smaller than the range of each of the previous three days' candlesticks, then this pattern can be marked as an NR4 structure.
With today's computing technology, writing scripts and automating this process is relatively easy. Alternatively, you can access some free pre-programmed narrow-range indicators to perform this task.
Regardless, once you identify an NR4 pattern on the price chart, you can take the next step to further assess and consider trading that setup. At the most basic level, when the price breaks above the high of the NR4 candlestick, it signals a long trade. Conversely, when the price breaks below the low of the NR4 candlestick, it signals a short trade.
NR4 candlestick trading example.
We will create a simple strategy to trade NR4 setups. The rules are as follows:
NR4 candlestick setup rules – (using daily chart time frame)
Long NR4 trading setup rules.
● The candlestick after the NR4 must break above the high of the NR4 candlestick.
● At the time of the breakout, the price must be above the 89-period simple moving average.
● Buy 1 point above the high of the NR4 candlestick.
● Set the stop loss 1 point below the low of the NR4 candlestick.
● Exit the trade at the close of the third candlestick after the breakout candlestick.
Short selling NR4 trading setup rules.
● The candlestick after the NR4 must break below the low of the NR4 candlestick.
● At the time of the breakout, the price must be below the 89-period simple moving average.
● Sell 1 point below the low of the NR4 candlestick.
● Set the stop loss 1 point above the high of the NR4 candlestick.
● Exit the trade at the close of the third candlestick after the breakout candlestick.
Now that we have the rules for trading NR4 setups, let's look at the price chart and apply this strategy. The chart below is the daily chart of the GBP/USD currency pair. You can see five arrows pointing to specific blue candlesticks. These blue candlesticks represent NR4 candlesticks. The light blue line marked on the chart is the 89-period simple moving average.
Now, let's analyze the five NR4 trading signals that occurred on this price chart. Starting from the left, the first signal occurs when breaking below the NR4 candlestick. We will exit our position on the third candlestick after the breakout candlestick, which leads to a profitable trade.
The second signal occurs shortly after the price breaks above the 89-period simple moving average. Here, we will wait for the price to break above the high of the NR4 candlestick. We can see this happens on the subsequent candlestick, which is our signal to go long. We will exit our position on the third candlestick after the breakout candlestick. This will occur when a shooting star pattern forms, creating a swing high.
The third NR4 trading signal occurs after a brief pullback. Note that the K-line following this NR4 candlestick breaks above the high and closes near the top of its range. The stop loss will be set at the low of the NR4 candlestick, which was never threatened. The exit will be triggered on the third day after the breakout, which occurs on the day when that candlestick itself is an NR4 candle. This is shown on the chart by the fourth arrow.
The last NR4 trading setup occurs when the price is far above the 89-period simple moving average. You can see that the price breaks above the high of this NR4 candlestick and continues to rise in the following days. The closing price of the last candlestick on the chart represents the exit point.
Trading NR4/ID candlestick.
The structure of the NR4/ID candlestick is similar to the NR4 candlestick but adds one condition: the last candlestick (the fourth candlestick) must also be an inside bar. An inside bar is one whose high and low range is contained within the range of the previous candlestick. Therefore, this narrow inside bar setup occurs when the high and low range of the fourth candlestick in the NR4 candlestick is contained within the range of the third candlestick.
Here are examples of the NR4/ID candlestick patterns:
As shown, the range of the fourth candlestick is smaller than the range of each of the first three candlesticks (1-3 K-lines). Therefore, the fourth candlestick is considered an NR4 candlestick. Additionally, the fourth candlestick is also contained within the range of the third candlestick. More specifically, the high of the fourth candlestick is lower than the high of the third candlestick, and the low of the fourth candlestick is higher than the low of the third candlestick. Thus, we can say that the fourth candlestick is an inside bar pattern. Therefore, this structure is both an NR4 candlestick and an inside bar, making it an NR4/ID candlestick structure.
The process of finding NR4/ID candlestick structures is similar to finding NR4 candlestick structures, but it adds a significant condition. This condition is that the fourth candlestick must also be an inside bar.
The basic signal for entering a long trade in the NR4/ID setup is when the price breaks above the high of the NR4/ID candlestick. Conversely, the signal for entering a short trade is when the price breaks below the low of the NR4/ID candlestick.
NR4/ID candlestick trading example.
Here are the simple rules for trading NR4/ID candlestick setups:
NR4/ID candlestick setup rules – (using daily chart time frame)
Rules for going long in NR4/ID trading setups.
● The candlestick after the NR4/ID must break above the high of the NR4/ID candlestick.
● At the time of the breakout, the price must be above the 89-period simple moving average.
● Buy 1 point above the high of the NR4/ID candlestick.
● Set the stop loss 1 point below the low of the outside bar. (This is the candlestick immediately before the NR4/ID candlestick.)
● Exit the trade at the close of the sixth candlestick after the breakout candlestick.
Short selling NR4/ID trading setup rules.
● The candlestick after the NR4/ID candlestick must break below the low of the NR4/ID candlestick.
● At the time of the breakout, the price must be below the 89-period simple moving average.
● Sell 1 point below the low of the NR4/ID candlestick.
● Set the stop loss 1 point above the high of the outside bar. (This is the candlestick immediately before the NR4/ID candlestick.)
● Exit the trade at the close of the sixth candlestick after the breakout candlestick.
Now, let's turn our attention to the figure below, which illustrates how to trade this intraday strategy based on the rules outlined above. The chart is a daily chart of the USD/CHF currency pair. Each of the six blue arrows points to an NR4/ID candlestick. You will notice that the NR4/ID candlestick is filled in black on this chart. The light blue line representing the price action trends downward indicates the 89-period simple moving average.
Trading NR7 candlesticks.
A narrow-range 7 candlestick (NR7 candlestick) is the narrowest trading candlestick over the past seven trading days. Therefore, the NR7 pattern consists of a total of seven candlesticks. The range of the seventh candlestick or the last K-line will be smaller than the range of each of the previous seven candlesticks. Let's take a look at how the NR7 candlestick pattern performs on the price chart.
In this chart example, you will notice that the price action of the last seven candlesticks is circled. Note that the range of the last candlestick (the seventh K-line) is narrower than that of the previous six. In simple terms, the high and low range of the seventh candlestick is smaller than that of each of the candlesticks numbered 1 to 6. Therefore, the seventh can be marked as an NR7 candlestick, confirming the pattern.
Similar to the process of finding NR4 patterns, we will follow the same steps to find NR7 patterns, with one exception. When evaluating the NR7 pattern, we will look back at a total of seven candlesticks' high and low data points instead of just confirming the last four.
As for entry signals, NR7 trading setups work the same way as NR4 setups. That is, when the price breaks above the high of the NR7 candlestick, a long signal appears. When the price breaks below the low of the NR7 candlestick, a short signal appears.
At this point, you might wonder about the actual difference between trading NR7 and NR4 setups, and why we might choose one over the other. Obviously, since the requirements for NR4 candlesticks are looser than those for NR7, you will see more NR4 setups compared to NR7.
NR7 candlesticks require a greater degree of price action compression than NR4 candlesticks. Therefore, we usually see breakouts after NR7 candlesticks more significant than those after NR4 candlesticks. While this is not always the case, it holds true in most instances.
NR7 candlestick trading example.
Here are the rules for trading NR7 candlestick setups:
NR7 candlestick setup rules – (using daily chart time frame)
Rules for going long in NR7 trading setups.
● The candlestick after the NR7 must break above the high of the NR7 candlestick.
● At the time of the breakout, the price must be above the 89-period simple moving average.
● Buy 1 point above the high of the NR7 candlestick.
● Set the stop loss 1 point below the low of the NR7 candlestick.
● Exit the trade at the close of the sixth candlestick after the breakout candlestick.
Short selling NR7 trading setup rules.
● The candlestick after the NR7 must break below the low of the NR7 candlestick.
● At the time of the breakout, the price must be below the 89-period simple moving average.
● Sell 1 point below the low of the NR7 candlestick.
● Set the stop loss 1 point above the high of the NR7 candlestick.
● Exit the trade at the close of the sixth candlestick after the breakout candlestick.
Now that we understand the rules for trading NR7 candlestick setups, let's look at some practical examples. The chart below shows the daily chart of the USD/CAD currency pair. There are a total of six signals on this chart, with the yellow candlestick representing the actual NR7 candlestick. The light blue line at the bottom of the chart represents the 89-period simple moving average, which serves as our trend filter.
Starting from the left, we can see that the first NR7 candlestick setup will issue a long entry signal on the subsequent candlestick. This will lead to the position being stopped out because the low of the NR7 candlestick is triggered shortly after entry.
Next is the second NR7 candlestick setup, where we will look for short entry signals after the NR7 candlestick. The subsequent candlestick broke out, allowing us to enter a short position here. Similarly, this trade resulted in a loss as the price eventually broke through the NR7 candlestick, triggering our stop loss. This happened when the price moved from below the 89-period simple moving average to above it.
We can see that the third NR7 setup occurs shortly after the price breaks above the 89-period simple moving average. The subsequent price breaks above the high of the NR7 candlestick, triggering a long entry signal. We will set the stop loss below the low of the NR7 candlestick. Exiting will be triggered at the close of the sixth candlestick after the breakout, which can be seen when a shooting star candlestick pattern forms before a strong green candlestick.
The fourth NR7 candlestick setup appears the day after the strong green candlestick mentioned above. Interestingly, the candlestick that breaks the high of this NR7 candlestick eventually also forms an NR7 candlestick itself. However, at this point, we are already in a long trade and will continue to hold the position until an exit signal occurs, ultimately resulting in a profitable trade.
The last NR7 candlestick pattern is significantly above the 89-period simple moving average. We can see the price breaks upwards the next day, triggering our buy entry order. The exit will be triggered at the sixth candlestick after the breakout candlestick (i.e., the sixth day). This is shown by the last green candlestick on this price chart.
Summary.
You should now have a good understanding of volatility contraction and expansion in the market. We have presented three different candlestick patterns that can help you identify consolidation periods in the market, which may lead to short-term price trends.
You can incorporate narrow-range candlesticks into your trading in many different ways. We outline some simple concepts for trading narrow-range candlesticks in our article, which should serve as a good starting point for you to expand these ideas and incorporate them into your overall trading plan.
Playing around in the crypto space is essentially a contest between retail investors and big players. If you don't have cutting-edge news or first-hand information, you can only be cut! If you want to layout together and harvest from the big players, feel free to reach out to me! Fellow crypto enthusiasts are welcome to discuss together~
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