1. The ideal difference between adjacent peaks is at least 30%. Of course, the greater the difference, the better. If two or three consecutive divergences occur, the likelihood of a trend reversal increases. Therefore, we can proactively filter out instances of significant divergences without consistent patterns, potentially increasing our winning rate.
2. Combining multiple strategies: We recommend that you conduct extensive review to identify more patterns. Then, combining multiple strategies can improve your win rate and profitability.
3. The 3D strategy is essentially a trend-following trading system. We capture short opportunities as prices continue to hit new highs and long opportunities as prices continue to hit new lows. This differs from most trend-following trading systems. Therefore, we must strictly adhere to entry and stop-loss conditions.
Trading rules
This strategy is not 100% effective, but it can provide a trading idea.
Go long
The following three conditions must be met at the same time:
1. K-line lows continue to hit new lows
2. MACD histogram continuous bottom divergence: the red histogram peak below the zero axis continues to hit new highs
3. Key K-line: The K-line corresponding to the first column when the dark column of MACD turns into a light column
Stop Loss
The stop loss for a long position is set at the low point of the key K line, minus the ATR value. This is actually the position and price of the line provided by our automatic stop loss tool.
Take Profit
For take-profit, we use a strategy that combines a fixed profit-loss ratio with a right-side take-profit. For example, we can take profit on half of our position at a 1:1.5 profit-loss ratio, while using a right-side take-profit on the other half to maximize profits.
Short
The following three conditions must be met at the same time:
1. K-line highs continue to hit new highs. 2. MACD histogram continues to diverge, and the green histogram peaks above the zero axis continue to hit new lows. 3. Key K-line: The K-line corresponding to the first bar where the dark MACD bar turns into a light bar.
Stop Loss
Key K-line high point + ATR
Take Profit
For take-profit, we use a strategy that combines a fixed profit-loss ratio with a right-side take-profit. For example, we can take profit on half of our position at a 1:1.5 profit-loss ratio, and use a right-side take-profit on the other half to maximize profits.
In addition to having solid technical skills, I have also worked hard to sum up 8 iron laws. Although they are not long in content, they are very valuable. If you think they don’t make sense after reading them, you can say whatever you want to me!
1. Iron Rule 1: Use "spare money fixed investment" to insure your account and avoid the gambler mentality
❶ Only invest money that you won’t feel bad about losing. A lesson learned from blood: When LUNA plummeted in 2022, 78% of those who lost money used their “living expenses/mortgage money”. The correct approach: take out 5%-10% of your monthly income (e.g., if you have a monthly salary of 5,000 yuan, invest 250-500 yuan per month) and use funds that “will not affect your life after losing” to enter the market.
❷ Fixed investment is the "anti-human sickle." Data proves that users who stick to fixed investment for 2 years have a 43% higher return rate than those who time the market. Practical plan: Invest 50 yuan in BTC every Thursday, and the funds will be automatically deducted to avoid the "leek operation" of "chasing highs when the price goes up and selling at a loss when the price goes down"
Key reminder: Set a "10% stop-loss line" Example: For a 5,000 yuan principal, if the loss of a single currency exceeds 500 yuan, the stop-loss will be automatically set. Preserving the principal is more important than recovering the capital.
2. Iron Rule 2: Choose the right platform and don’t let fees eat up your profits
❶ Small investment first choice "low fee safety card" avoidance guide: a platform's small transaction fee is as high as 3%, with a principal of 10,000 yuan, 10 transactions will lose 300 yuan. Selected list (2025 test): Binance: minimum investment of 1 US dollar, spot trading fee of 0.1% (use BNB to deduct another 25%) Coinbase: US compliant platform, suitable for beginners, supports small fixed investment of 5 US dollars
❷ Safety is the top priority. Must-check items: Is the platform "regulated by Canada's CSA"? "Does it store over 95% of assets in cold wallets?" Case study: In 2024, a platform was hacked, and user assets were wiped out overnight. Check the "Certik Audit Report" before choosing a platform.
3. Iron Rule 3: Diversified Investment ≠ Random Investment, These 3 Types of Coins Must Be Allocated
❶ "Basecoin" has a stable base (60% position) BTC (30%): "Digital Gold" in the cryptocurrency circle, institutional holdings increased by 230% in 2025, the most resilient ETH (30%): The core of the DeFi ecosystem, gas fees dropped by 50% after the Prague upgrade, long-term bullish
❷ "Potential Coins" for explosive growth (30% position) Track selection: AI Coin (FET), L2 Coin (ARB/OP), Cancun Upgrade Beneficiary Coin (MATIC) Screening criteria: Top 50 by market capitalization, team with real products, 20% increase in on-chain activity in the past three months
❸ Recommended hedge coins for black swan protection (10% position): stablecoin USDC (principal protection), gold ETF coins (such as XAUT, inflation protection)
Trap Avoidance Guide: Reject the "100x Coin Myth" Data: 92% of 15,000 altcoins will be worthless by 2024. Only invest in coins that "can name 3 application scenarios."
4. Iron Rule 4: Spending 1 hour studying is more important than watching the market for 10 hours
❶ 3 essential knowledge points to understand white papers: Focus on the problem they solve (e.g., BTC solves trust, ETH solves decentralized computing). On-chain data: Use Glassnode to track whale holdings and DeFi Llama to track protocol locked-in assets. Policy trends: Has the US SEC designated 60% of altcoins as securities? How does Canada's MiCA law impact compliance?
❷ Anti-fraud Tip 3: Avoid anonymous team coins and new coins outside the top 30 gainers. Hardware wallets are a lifesaver: Don't store long-term holdings on exchanges! The Ledger Nano X is only 300 yuan and is a great hacker-proof device.
5. Iron Rule 5: Use "Cyclic Thinking" to Defeat Anxiety and Outlast the Market Makers
Remember the historical law of the "four-year cycle" in the cryptocurrency market: 2013-2017-2021-2025, a big bull market every four years, and now we are in the "early stage of the 2025 main rising wave" Key indicator: When BTC's market capitalization falls below 50% (currently 60%), altcoins will usher in an explosive period
The ultimate reminder for small capital investors
Warning: Don't use leverage! Using 10x leverage with small capital has a 99% chance of liquidation within 3 months. Don't chase hot spots! The 90% drop in PEPE coin proves that following the hype is just giving money to the market makers.
The cryptocurrency world isn't a "cash machine for the rich," but a "playground for the smart." Starting today, start a regular investment with 500 yuan and turn your monthly allowance into a "digital asset seed." Remember: in the cryptocurrency world, patience is more important than courage—those who persevere through the downturn will ultimately become the biggest winners in the bull market.
Playing around in the cryptocurrency world is, to put it bluntly, a battle between retail investors and bankers. If you don't have cutting-edge information and firsthand data, you'll be ripped off! If you want to work with me and harvest the bankers together, come find me! [Official Account: Trend Prediction] Welcome like-minded cryptocurrency traders to discuss together~
There is a saying that I strongly agree with: the boundaries of knowledge determine the boundaries of wealth, and people can only earn wealth within the boundaries of their knowledge.
You must have a good mentality when trading cryptocurrencies. Don't let your blood pressure soar when there is a big drop, and don't get carried away when there is a big rise. It is more important to lock in your profits.
The opportunity has come, your assets will double! Follow Brother Cheng and make a lot of money easily
Continue to focus on: MAGIC, IDEX