In the cryptocurrency market, too many people are obsessed with the skill of 'buying high and selling low', but ignore a set of the simplest rules—I have tried over a dozen trading methods, and ultimately relied on this seemingly 'clumsy' logic to achieve stable profits, which I still use today. It does not involve complex indicators, and does not even require staying up late to watch the market; the core lies in 'sticking to the rules' rather than 'guessing the market'.
1. Asset Selection: Capture the 'trend skeleton', filter out 'capital traps'
The first step is not to look at candlesticks, but to do 'subtraction':
First, list an observation pool: filter the cryptocurrencies that have shown an upward trend in the past 11 trading days, while excluding those that have 'declined for more than 3 days'. The reason is simple: 11 days of rising reflects a continuous inflow of short-term capital, while a decline for 3 consecutive days often signals capital outflow— even if there is a rebound in between, it may be 'inducing buying to sell', and such assets are unlikely to support subsequent trends.
Further technical filtering: Open the monthly candlestick chart and only keep the cryptocurrencies with 'MACD golden cross'. A monthly MACD golden cross is a 'traffic light' for the medium-term trend: when the white line in the MACD indicator crosses above the yellow line from below, and the histogram changes from green to red, it indicates that the medium-term bullish force has been activated. The rise of such cryptocurrencies is often more sustainable, rather than a short-term speculation.
2. Timing of Entry: Rely on 'moving averages + trading volume' to hit the rhythm
After selecting the assets, the entry point must be 'precise and conservative':
Switch to the daily candlestick chart, closely monitor the 60-day moving average (MA60)—this is the 'lifeline' of the medium-term market. Only when the price retraces near MA60 and there is 'volume support' (i.e., volume shrinks during the pullback and suddenly increases when stabilizing) should one consider entering the market.
The principle is straightforward: MA60 is the 'cost line' for most institutions and large players; when the price retraces to this level, it often triggers buying support; and an increase in volume indicates that substantial funds are 'entering the market', rather than a speculative rise driven by retail investors. Entering at this time not only avoids the risk of chasing highs but also allows one to catch the 'tailwind' of the trend.
3. Take Profit and Stop Loss: Use 'iron rules' to lock in profits and avoid pitfalls
Whether one can make money depends not on the entry point, but on the 'exit rules'—the core of this method is to replace 'subjective judgment' with 'mechanical execution':
Using MA60 as the 'life and death line': After entering, as long as the price continues above MA60, hold firmly; once the closing price falls below MA60, regardless of whether it rebounds the next day, one must exit the entire position. Countless lessons have proven that breaking below MA60 is often the starting point of a trend reversal; hesitating for a second could turn a 'small loss' into a 'deep entrapment'.
Take profits in stages, do not be greedy for 'tail-end trends':
When the cryptocurrency held rises over 30%, immediately sell 1/3 of the position—this locks in 'certain profits';
When the rise exceeds 50%, sell another 1/3—by this time, the market is in the mid to late stages, keeping 1/3 of the position for speculation is sufficient;
The most critical is the 'zero fantasy principle': if the price falls below MA60 the day after purchase, even if it is a 2% loss, one must cut the position. This is not admitting defeat, but preventing a 'small mistake' from turning into 'liquidation'.
4. Why can it be stable? Because it is 'counterintuitive'
The essence of this method is to use 'rules' against the market's emotionality:
It does not pursue 'buying at the lowest', but rather 'buying when the trend is confirmed'— even if 10 points less profit is made, it avoids buying at halfway up the hill;
It does not get tangled in 'selling at the highest', but rather 'takes profits in stages'— even if the market continues to rise, 2/3 of the profit has already been secured, leading to a more stable mindset;
The core principle is 'not holding onto positions'— most people face liquidation not because they misjudged the direction, but because after breaking below the support level, they still hold on to 'rebounce fantasies', and the mechanical stop loss at MA60 just extinguishes this kind of luck.
Some say 'this method is too simple', but I have seen too many people using complex indicators losing disastrously, while those relying on this set of rules can achieve stable profits. The key to earning millions every year has never been 'predicting the market', but 'sticking to the rules': when you replace the effort of 'watching candlesticks' with 'executing discipline', the market will instead give you the most tangible returns.
Blindly acting alone will never bring opportunities; follow Super Brother, and I will guide you to explore tenfold potential cryptocurrencies! Top-tier primary resources!
