Yes, of course. I know an old mentor who entered the market with 100,000 yuan and now has a portfolio value of 42 million. He once told me a phrase that enlightened me: 'In this crypto market, most are just a herd following trends; as long as you can control your emotions, this market becomes your ATM.'
Based on my experience, wanting to make money in the crypto circle hinges on three core points:
1. Cognitive gap: high-dimensional cognition determines the ceiling of returns
A high enough cognitive dimension allows one to see opportunities that others cannot. For example, in the last market cycle, some people heavily invested in Doge, not because their technical analysis was superior, but because their understanding of the investment logic far exceeded that of most—months before, they anticipated the core driving force behind Doge's rise. Similarly, some trading experts have such depth of understanding of market patterns that they gain an advantage in trading.
2. Information asymmetry: seizing the early window of new narratives
The value of information asymmetry is mainly reflected in the early stages of new trends and new play styles. For instance, models like mining, selling, airdropping, or scraping profits, whoever can intervene earlier can reap the first wave of dividends. As for how to accumulate information asymmetry, there is no shortcut; it relies on long-term tracking of industry dynamics, more comparative analysis, and summarizing patterns—previously, I occasionally shared some thoughts on social platforms, and those with keen insight can always find clues.
3. Execution gap: bridging the gap through effort or skills
When cognitive and informational advantages are not obvious, execution becomes the key to breaking the deadlock. Either through extreme effort (such as bulk harvesting or digging into details) or via technical empowerment (like developing tools or optimizing strategies). Many players in the circle who leverage tools for airdrops or NFT tools have turned ordinary opportunities into excess returns through execution.
These three are not isolated; they can also overlap: cognitive gap + execution gap, information gap + execution gap, often yielding results where 1 + 1 > 2.
Essential insights: I have used 17 types of candlestick patterns in trading over 5 years.
My cryptocurrency trading method is actually quite simple, achieving 8-digit returns in just one year. The core principle is 'no trade without a pattern', entering the market only when specific patterns appear. Over the past 5 years, my win rate has consistently remained above 90%. The following 17 patterns are all validated effective signals through practical experience:
1. Bullish engulfing pattern
Composed of two candles, the first closes lower, and the second's bullish body fully covers the previous body and closes higher. This indicates a shift in market control from sellers to buyers, likely leading to an upward trend.
2. Bearish engulfing pattern
Opposite to the bullish engulfing: the first closes higher, and the second's bearish body completely covers the previous body and closes lower. This indicates a decline in buying power as sellers begin to dominate the market, potentially starting a downward trend.
3. Bullish Harami pattern
The first is a long bearish candle, and the second's bullish body is entirely contained within the first body. The term 'Harami' (Japanese for 'pregnant') is quite illustrative, suggesting a potential reversal of the downward trend and the start of an upward move.
4. Bearish Harami pattern
The first is a long bullish candle, and the second's bearish body is entirely contained within the first body. This means there is insufficient upward momentum, and a reversal to a downward trend is possible.
5. Bullish cross-pattern
Consisting of three candles: the first is a long bearish candle, the second is a doji (fully contained within the first body), and the third is a bullish candle. This often suggests a bottom in the downward trend, and a rebound is imminent.
6. Bearish cross-pattern
Opposite to the bullish cross-pattern: the first is a long bullish candle, the second is a doji (contained within the first candle), and the third is a bearish candle. It suggests a peak in the upward trend and a potential start of decline.
7. 'Sandwich' candlestick pattern
Two bullish candles sandwiching one bearish candle, with little difference between the opening and closing prices of the three candles. The pattern resembles a 'sandwich', indicating market indecision with no clear direction temporarily.
8. 'White Three Soldiers' pattern
In a downward trend, three consecutive bullish candles appear, signaling a strong reversal, indicating that the decline is about to end and upward momentum is gathering.
9. 'Three Black Crows' pattern
In an upward trend, three consecutive bearish candles usually indicate the end of the upward trend, and the price may reverse downward.
10. Tweezer top pattern
Both candles have long upper shadows; the first rises then falls back, and the second tests the previous high again before encountering resistance and declining, resembling 'inverted tweezers'. This indicates that the price struggles to break through the high point and may peak.
11. Tweezer bottom pattern
Opposite to the tweezer top, two candles have long lower shadows, bouncing back after testing the same low point. This suggests that the price decline is being resisted and may rebound.
12. Morning star candlestick pattern
Consists of three candles: the first is a long bearish candle, the second is a doji, and the third is a bullish candle (the closing price exceeds 50% of the first body). Like the 'star before dawn', it indicates the end of a downward trend and the start of an upward trend.
13. Evening star pattern
Opposite to the morning star: the first is a long bullish candle, the second is a doji, and the third is a bearish candle (the closing price drops more than 50% below the first candle's body). Like the 'evening star', it suggests a peak in the upward trend and an impending decline.
14. Piercing line pattern
The first is a long bearish candle, and the second bullish candle opens below the previous closing price, and the closing price exceeds 50% of the previous body. The strength is weaker than a bullish engulfing but may still signal an upward trend.
15. Cloud cover top pattern
In an upward trend, the first is a long bullish candle, and the second bearish candle's closing price enters the range of the previous candle's body. Like 'clouds pressing down', it suggests that the upward trend may turn into a downward trend.
16. Bullish abandoned baby pattern
A rare bottom reversal signal composed of three candles: a long bearish candle, a doji (with price gaps before and after), and a long bullish candle. The doji resembles an 'abandoned baby', indicating an impending reversal of the downward trend into an upward one.
17. Bearish abandoned baby pattern
Opposite to the bullish abandoned baby: a long bullish candle, a doji (with gaps), and a long bearish candle. It indicates that the upward trend may end and a downward trend may soon begin.
Important reminder: Do not overly rely on candlestick patterns.
Candlestick patterns can help us judge changes in market power (who is leading, who is declining, where the resistance levels are), but they must not be used as the sole basis for trading. It's best to combine them with indicators like trading volume and moving averages to validate signals, thus improving win rates.
I am an old player in the crypto circle, follow @加密玖 , providing both fish and teaching to fish—taking you to double your gains with small funds in a bull market, becoming the sharpest knife in the market!
