If your account funds are below 1 million and you want to make short-term profits in the crypto circle, there's a tried-and-true "MACD strategy", simple and practical, retail investors can easily master it. Don't worry about not being able to learn, I'm not a god, just someone who mastered the method. Once learned, pay attention to it in trading, you might earn extra 3 to 10 points daily.
Today I share a set of veteran strategy from the past 8 years, with an average win rate of 80%, rare in the crypto circle. MACD strategy, essential for short-term swings, also applicable to contracts, monthly profits can reach 30%-50%.
Market meaning:
I. Dual moving averages
Position: Bullish above the 0 axis, bearish below; crossing above and below the 0 axis to judge the trend.
Cross: Small cycle signals are many, do not use alone.
II. Volume bars
Bull-bear dividing line: Above the 0 axis is bullish, below is bearish.
Bullish trend: Volume bars above the 0 axis change from small to large, upward trend.
Bullish pullback: Volume bars above the 0 axis change from large to small, upward trend adjustment.
Bearish trend: Volume bars below the 0 axis change from small to large, downward trend.
Bearish rebound: Volume bars below the 0 axis change from large to small, downward trend adjustment.
Comprehensive meaning:
Bull-bear balance: Moving averages surround the 0 axis, volume bars are sparse, the market is volatile.
Divergence: Momentum exhaustion signal, valid divergence with dual volume bars.
Trend continuation: Trend up + volume bars on the 0 axis, or trend down + volume bars below the 0 axis.
"MACD" 8 major entry points:
I. Chan theory buy and sell points
First type: Bottom divergence + golden cross to buy, top divergence + dead cross to sell.
Second type: Dual lines first cross the 0 axis, pull back to near the 0 axis, buy on the first golden cross above the 0 axis.
II. Trend judgment trading method
Large cycle determines trend, small cycle enters. If weekly and daily are bullish, short when daily pulls back or wait for the pullback to weaken to go long with the weekly trend.
III. Energy bar position trading method
Moving averages surround the 0 axis, volume bars are sparse, enter when the price breaks through.
IV. Key position trading method
Key support and resistance levels.
K-line piercing signal.
Volume bar positive-negative conversion for short/long.
V. Secondary red-green trading method
First wave upward volume bar is moderate, shrink and then expand again to continue.
VI. Buddha's hand upward
Dual lines golden cross then go up, pull back to near the 0 axis, DIF line turns up.
VII. Main wave trading method
MACD volume bars continuously rise above the 0 axis, enter when volume bars shorten or amplify again during pullbacks.
VIII. Divergence + pattern trading method
MACD divergence + trend break to judge turning points.
Also share a set (mindless rolling position method): 300 times in 3 months, earning 30 million. If you want to get a share in the crypto circle, take a few minutes to finish reading, benefit for a lifetime.
Adjusting positions:
Timing: Re-enter when the market meets rolling position conditions.
Open position: Find timing to enter based on technical analysis signals.
Add position: Market moves in the right direction, gradually increase position.
Reduce position: Reduce when profits reach preset levels or when the market is not right.
Close position: Close all when reaching target price or when the market clearly changes.
Rolling position insights:
Add more after making money: If the investment rises, the cost lowers and the risk is smaller, you can add more when the trend breaks or pulls back.
Base position + trading T: Assets divided into two parts, base position stays still, the other part is traded during fluctuations to reduce costs and increase returns.
Risk management:
Total position control and capital allocation, ensuring total investment does not exceed risk tolerance, smart capital allocation, focus on market dynamics and technical indicators, flexibly adjust strategies, and timely stop-loss or adjust investment amounts.
Rolling position strategy has low risk, the key is in leverage usage. For example, with 10,000 yuan capital, 10 times leverage, using only 10% margin, it effectively becomes 1 time leverage, with a 2% stop-loss line, losses are limited. Liquidation is caused by excessive leverage or heavy position, reasonable use of leverage and position control makes risks manageable.
How can small capital grow big? Compound interest effect. With limited funds, medium to long-term is more suitable, focus on multiplying growth in each trade.
Position management:
Diversify risks, split capital into three to four parts, invest only one part each time.
Use leverage moderately, mainstream currencies not exceeding ten times, small coins not exceeding four times.
Dynamically adjust, supplement losses with equivalent funds, withdraw appropriately when profits are made.
As capital grows to a certain extent, gradually increase the amount for each trade, step by step.
Have your own trading philosophy, establish a trading system, overcome human weaknesses, let profits run, and cut losses to exit. Trading in the cryptocurrency market is a contest of time and patience, not a contest of strategy. No matter how diligent a fisherman is, he will not go to sea during a storm but will protect the fishing boat and wait for a sunny day.
