I have been trading coins for 10 years, from huge losses to great wealth! I have summarized MACD and KDJ indicator techniques. The text is short, but simple and practical. If you want to survive in the currency circle for a long time, this article is worth reading carefully. You will be instantly awake after reading it!

Success is never accidental. Everyone who succeeds has gone through all kinds of hardships and walked out step by step. It is undeniable that some people are born geniuses, but there are very few such people, not you and not me. Most people gradually tend to perfection after constantly experiencing failures. It is also these failed experiences that will realize many feelings and truths that cannot be experienced by taking shortcuts.

A common saying is that there are no good opportunities. In fact, opportunities are reserved for those who are prepared. When the opportunity comes, they can be prepared to firmly grasp the opportunity, and passively waiting for the opportunity like a rabbit waiting for a rabbit, when the opportunity really appears in front of them, they either miss it or can't grasp it.

Before talking about MACD+KDJ indicator techniques, I am very strict with the following 10 iron laws of warfare:

1. Discipline is more important than everything

"I make money sitting, not by operating." —— Jesse Livermore

Don't trade frequently, wait for a real opportunity.

2. Stop the loss immediately if the direction is wrong

"Losing small money is a trader's tuition, if you don't stop the loss, you are waiting to pay graduation fees."

Don't carry losses, admit the mistake, and cut the mess with a sharp knife.

3. You earn the money from other people's stop loss

The market is that a few people eat most people, only earn the money you should earn.

4. Don't predict, just confirm

"Predictions can kill people, the market tells you the direction."

The chart comes out, the signal is confirmed, and then take action.

5. Small losses, big wins

"Control losses and magnify profits."

One order makes money, two orders lose money, and the overall makes money.

6. Follow the trend, and you will fail if you go against it

"The market is always right, it's your idea that is wrong."

Don't gamble on turning points, don't bottom out if the trend hasn't changed.

7. Avoid emotional trading

Greed makes you chase highs, and fear makes you cut at the bottom.

Take three deep breaths before entering and exiting the market.

8. Do not add positions to carry orders

"Die from carrying orders, bury in adding positions."

Wrong is wrong, don't try to double down to win back.

9. Discipline brings freedom

True freedom comes from the compound interest return after a long-term execution of rules.

10. "Don't move" is sometimes the best operation

Not taking action is also a transaction. If the opportunity does not come, just wait and see.

In the currency circle, it is easy to be harvested by the market if you operate alone based on intuition. Technical analysis is an essential tool, and MACD (Moving Average Convergence Divergence) and KDJ (Stochastic Oscillator) are two common trading indicators. The problem is that these two indicators have their own advantages and disadvantages. Using them alone may lead to pitfalls, but if they are combined, the win rate can be greatly improved.

So, how to use these two indicators well? Today, I will share the practical techniques of combining MACD and KDJ to help you more accurately judge the buying and selling points, improve the win rate of transactions, and avoid market traps.

Before the actual combat, we need to understand the characteristics of MACD and KDJ respectively. Only by mastering their advantages and disadvantages can we better use them in trading.

1. MACD: A compass for trend judgment

MACD is mainly used to judge medium and long-term trends, which can help us see the general direction of the market. Its advantage is that it is stable and does not send signals frequently, but the disadvantage is that it has strong lag and cannot quickly capture short-term opportunities.

2. KDJ: A scout for short-term trading

KDJ is more sensitive than MACD and is suitable for capturing short-term buying and selling signals. It has a fast response speed, but it is prone to false signals, leading to misjudgment.

MACD can grasp the general trend, KDJ can filter short-term noise, combined with each other, use KDJ to capture opportunities in advance, make up for the MACD signal lag, so as to improve the accuracy of trading and avoid being deceived by the market! How to use it specifically, let's enter the actual combat!

Usage One:

MACD double line upward + KDJ three lines diverging upward = Bullish trend starts

It should be noted that the MACD fast and slow lines are upward, and it is best to break through from below the zero axis, and the KDJ three lines rise simultaneously, and the J line changes from negative to positive. This situation indicates that the market has entered a bullish trend, the main force may have entered the market, and the price may continue to rise.

So when the price breaks through key resistance, you can consider entering the market. If the KDJ enters the overbought zone too quickly, be cautious about chasing highs and wait for a pullback. When the market trend gradually forms, we need to pay attention to whether there are further buying opportunities. If the market adjusts briefly but does not destroy the overall trend, the next signal may appear.

Usage Two:

MACD low-level volatility + KDJ J-line low point rises = Main force may be accumulating chips

If the MACD fast and slow lines fluctuate horizontally at a low level, and the KDJ's J line keeps rising to new lows in a stepped manner, it indicates that the market has entered a state of equilibrium, and the rise of the KDJ's J line may be that the main force is accumulating chips at a low level and does not want the market to notice.

What we need to do at this time is to observe whether the currency price is stable at the support level and confirm it in conjunction with the trading volume. If the KDJ forms a golden cross at a low level and the MACD has an upward trend, you can consider building a position in batches

In the main force's chip accumulation stage, the market may not rise immediately, but as the chips are concentrated, the market may gradually move upward. At this time, if the market further stabilizes, we must pay close attention to whether there are stronger reversal signals.

Usage Three:

MACD double green + KDJ low golden cross = Reversal signal

When the MACD red column shortens and then increases again, forming a "double green", and the KDJ forms a golden cross at a low level, this situation usually means that the previous decline in the market may be the main force washing the market, and the price is expected to reverse.

At this moment, you should pay close attention to whether the currency price breaks through the previous high. Once it breaks through, you can increase your position with the trend. If the trading volume increases again, the signal is more reliable!

However, it should be noted that not all rebounds are strong rebounds. We also need to observe market sentiment to see if there are external positive factors driving the market to further attack.

Usage Four:

MACD and KDJ death cross at the same time = Increased risk of falling

If at this time, the MACD fast and slow lines form a death cross, and the KDJ three lines form a simultaneous death cross, it indicates that the market's short-term and long-term trends have turned weak, and it may enter a downward phase.

So if the currency price is at a high level, you can consider taking profit or reducing positions. If the currency price is at a low level, observe whether it is a false break to avoid

It should be noted here that if the overall market trend is still upward, but there is a short-term correction, we need to further observe the extent of the adjustment to determine whether it is suitable to buy low.

Usage Five:

MACD flat above the zero axis + KDJ death cross = Possible short-term correction

The MACD is still above the zero axis, but the fast and slow lines begin to flatten, and the KDJ shows a death cross. At this time, the MACD above the zero axis indicates that the overall market is still in a bullish trend, but the KDJ death cross means that there may be a short-term correction, which is likely to be the main force washing the market.

So, we need to observe whether the MACD has a death cross. If it is just flattening, we can stay put. If the KDJ quickly repairs after the death cross and the MACD does not break the zero axis, we can consider buying on dips

Advanced techniques: How to improve the accuracy of MACD+KDJ?

1. Combine trading volume to confirm the signal

If the trading volume increases when MACD/KDJ sends a buy signal, the signal is more reliable

If the trading volume does not cooperate, it may be a false signal, so be careful

2. Combine support and resistance levels

Near key support levels, the KDJ golden cross at low levels is more effective

Near important resistance levels, be wary of KDJ's high-level death cross

3. Respond flexibly to different market environments

MACD signals are more reliable in a trending market

KDJ may be more effective in a volatile market

Combine market sentiment and news to improve the accuracy of judgment

So, if you want to use MACD+KDJ more stably, you must first do the following:

1. Avoid judging by a single indicator. MACD looks at the big trend, KDJ captures short-term signals, and combined use is more accurate.

2. Adopt different strategies for different market conditions: Trend market: MACD is the main one. Volatile market: KDJ is more effective

3. Combine market factors and comprehensively analyze trading volume, support and resistance, market sentiment, etc. to avoid being misled by a single signal.

Finally, I want to say that the combined use of MACD+KDJ can improve the win rate of transactions, but the market is changing rapidly, and no indicator is 100% accurate. The key is to use it flexibly and manage risks reasonably in order to survive and profit in the currency circle. Learn this method, avoid detours, increase the win rate, and steadily increase account income!

Finally, I will share one more! What kind of mentality should you have if you don't want to lose completely in the currency circle?

In the currency circle, follow your own rhythm, don't predict ups and downs, just look at the current trend, and operate according to the plan if the conditions are met. At the same time, calmness, learning, patience, self-discipline, independent thinking, good mentality, decisiveness, courage, and good at summarizing are all essential. #中国加密新规

Many people plunge into the currency circle with the illusion of getting rich instantly, but they don't realize that this eagerness for quick success is the beginning of failure. Real currency circle experts often regard hoarding coins as the foundation and accumulate wealth step by step.

Hoarding coins is a stable and highly visionary investment strategy. When you are chatting with friends in your spare time and mention that you are involved in the currency circle, if you don't even have a valuable digital currency in your pocket, how can you confidently call yourself a "currency circle bigwig"? This is like a scholar who claims to have many books, but his study is empty, which is difficult to convince. Having a certain number of high-quality currencies is not only a symbol of strength, but also the confidence for long-term development in the currency circle.

Contract trading in the currency circle is like a double-edged sword. It can be a shortcut to obtaining high profits in the short term, but it also hides huge risks. Many people are attracted by the high leverage and high returns of contracts and plunge into it, but end up losing everything. In contrast, hoarding coins is more like a long marathon. Although there is no thrilling contract trading in the process, as long as you persevere, you can often reap unexpected results. Contracts may just be an episode on the way to wealth, and hoarding coins is the key path to finally reaching the other side of wealth. #BitDigital转型

It must be clear that the currency circle is by no means a place where you can get rich overnight. Most of those who expect to achieve financial freedom instantly end in disappointment. However, this does not mean that the currency circle is unprofitable. By learning professional techniques and deeply understanding the laws of market operation, investors can reap generous returns in the currency circle. Just like an experienced fisherman, after understanding the habits and habits of fish schools, he can harvest a lot in the vast sea.

In this regard, Teacher Qingtian has summarized a set of effective trading formulas based on years of experience in the currency circle, which can be called a valuable asset for novices who are new to the currency circle and investors seeking a breakthrough.

1. "Buy sideways and buy pits, not verticals, and the selling point is where it's boiling": This formula emphasizes that when investing, you should choose currencies that are in a sideways consolidation or pullback phase, and avoid chasing currencies that are rising linearly. When market sentiment reaches a boiling point and everyone is buying frantically, it is often the best time to sell. For example, in the price trend of some digital currencies, when it suddenly starts to rise after a long period of sideways trading, the risk of entering the market at this time is relatively low; while when the price soars linearly in a short period of time and the market is cheering, investors need to be vigilant and consider selling at the right time. #俄乌冲突即将结束？

2. "Continuous small rise is a real rise, continuous big rise should leave the market": A continuous small rise indicates that the currency's upward trend is relatively stable, and the market is gradually recognizing its value. On the contrary, if the currency shows a continuous large rise, this is very likely a signal of market overheating, and there may be artificial speculation and other factors behind it. At this time, investors should decisively leave the market and protect their profits. For example, some emerging currencies may attract investors' attention with a stable small increase in the initial stage, and when they suddenly rise sharply and continuously in a short period of time, they are often followed by a price callback.

3. "A big rush to the top will retrace, and you shouldn't buy a lot if you don't dig a deep pit": After the currency price rises sharply, there will inevitably be a stage of retracement and adjustment. Investors should not blindly chase the high at this time, but wait for the currency price to retrace to a certain depth and form an obvious "deep pit" before entering the market. This can effectively reduce investment risk and increase profit margin. Taking Bitcoin as an example, its price has experienced deep retracements after several sharp increases, providing excellent entry opportunities for those who waited patiently.

4. "The main rise accelerates to the top, sell sharply on a sharp fall, and sell slowly on a slow rise": When a currency enters the main upward wave and accelerates its rise, this is usually a signal that it is peaking, and investors should be prepared to leave the market at any time. In the process of currency price decline, if it is a sharp decline, it may be the instantaneous release of market panic. At this time, it should be sold decisively; if it is a slow decline and the trading volume increases, it indicates that the market is gradually digesting negative factors, and it should also withdraw as soon as possible. In the trend of some altcoins, it is often seen that the main rise accelerates and then peaks quickly. If investors cannot detect it in time, they will fall into a trapped situation.

5. "A sharp drop without volume is a scare, and a slow drop with volume should be withdrawn quickly": If the currency price drops sharply in the short term, but the trading volume does not increase significantly, this is likely to be the main force's washing technique, intending to scare retail investors to hand over their chips. On the contrary, if the currency price drops slowly and the trading volume continues to increase, it indicates that investors in the market are selling a lot. At this time, investors should withdraw quickly to avoid further losses. In actual transactions, many investors panic and sell during a sharp drop without volume because they do not understand this rule, and they have illusions during a slow drop with volume, which ultimately leads to losses.

6. "If the price breaks through the lifeline, don't hesitate to make a wave": The lifeline here can refer to a key moving average. When the currency price breaks through this lifeline upwards, it means that the market trend may be reversed, and investors should seize the opportunity to make a wave operation, buying low and selling high to obtain the price difference profit. For example, when the price of Bitcoin breaks through the 200-day moving average, it will often usher in a considerable upward trend, and investors can take advantage of the trend to make a wave transaction at this time.

7. "Look carefully at the daily and monthly lines, and build a position with the main force": The daily and monthly lines can reflect the long-term trend and market trend of the currency. By carefully analyzing the daily and monthly line charts, investors can better grasp the trend of the main force and follow the steps of the main force to build a position. For example, when the main force starts to accumulate a lot of chips on the monthly line level, investors can also follow up in due course and share the future upward dividend.

8. "If the currency price rises without volume, the main force will lure more, don't stand guard": If the currency price rises without the cooperation of trading volume, it is likely that the main force is deliberately raising the price to attract retail investors to follow suit and buy, so as to achieve the purpose of shipping. Investors must remain sober at this time and not blindly chase highs, so as not to become the "leeks" standing guard. In some currencies with more serious market manipulation, this kind of volume-free rise often occurs, and investors need to be especially vigilant.

9. "A shrinking volume and new low is like a bottom, and increasing volume and rebound should enter the market": When the currency price continues to fall and the trading volume gradually shrinks to a very low level, while creating a phased new low, this is often a signal that the bottom is about to form. When the currency price begins to rebound and the trading volume increases simultaneously, it indicates that the market's bullish power is beginning to increase, and investors should decisively enter the market. For example, in some historical price trends of Ethereum, there have been many cases of increasing volume rebound after a shrinking volume and new low, providing investors with accurate entry timing.

These formulas seem simple, but they contain profound market wisdom and are valuable experiences summarized by countless investors in practice. They are like bright lights, illuminating the path for investors to move forward in the currency circle. As long as they are kept in mind and used flexibly in actual combat, they can avoid many detours.

In currency circle trading, in addition to mastering these practical formulas, you also need to deeply understand the "techniques" in trading, that is, the application of technical indicators. In secondary market investment, we can divide investment into three levels: Tao, Fa, and Shu. These three are complementary and indispensable.

The above are all trading experiences of 10 years of trading coins. I have experienced a lot of bumps. These are all heartfelt words of great enlightenment. I hope it will be helpful to everyone. Yan An products must be excellent. There is a beautiful woman in the currency circle, peerless and independent, with a soul, and a technique to control coins!

No matter how diligent a fisherman is, he will not go out to sea to fish in the season of storms and rains, but will carefully guard his fishing boat. This season will always pass, and a sunny day will always come! Follow me, I will teach you how to fish, the door of the currency circle is always open, follow the trend, you can have a smooth life, collect it and keep it in mind!