10 years of ups and downs in the cryptocurrency world: Daily moving average trading strategy, unlocking the key to wealth, from entering the crypto space at 8000 to achieving financial freedom today!
After more than ten years of ups and downs in the cryptocurrency space, I lost over a hundred in the first three years; it was a dark time, with every loss stabbing my heart like a knife. However, in the following years, I successfully turned the tide, earning back hundreds. Every penny of that was the result of countless days and nights of research and reflections on numerous failures, a profound lesson intertwined with blood and tears.
The cryptocurrency market, full of temptations and traps, always follows a secret and eternal rule: 90% of ordinary investors, like headless flies, blindly follow the trend based on news; 9% of slightly smarter investors focus on the movements of the big players, trying to capture clues; while only 1% of top experts, through precise analysis of the daily moving average, dissect the inherent genes of the market. Next, I will share this set of daily moving average trading strategies that have been tested in practice without reservation.
Step 1: Accurately insight into the characteristics of moving averages.
We can imagine the daily moving averages as three senior traditional Chinese medicine doctors with completely different personalities. The 5-day line is like the head of the emergency department, acting swiftly and being extremely sensitive to short-term market changes, quickly capturing the sudden situations; the 30-day line is like an internal medicine expert, experienced and good at grasping mid-term trends, providing a robust reference for investment decisions; while the 60-day line is like an old expert sitting in a clinic, with profound knowledge and long-term vision, perceiving the long-term direction of the market.
When the head of the emergency department (5-day line) suddenly exerts power and crosses above two senior predecessors (30-day line and 60-day line), it is like a critically ill patient being sent to the ICU for rescue, indicating that the market is about to experience a strong rise, serving as a potential buy signal. Conversely, if the head of the emergency department slips and falls below the support of the two senior predecessors, it is like the patient's condition worsening; at this time, do not hesitate, but decisively adjust your position to reduce risk.
Step 2: Build a rigorous trading system.
Stick a note in a prominent place on the trading interface with bold markers, writing: 'Moving averages entangled, cautious observation'. When the 5-day line and the 30-day line twist and tangle like a twist, the market direction is extremely unclear. At this time, rushing into a trade is like throwing dice in the dark to guess odd or even, relying entirely on luck with a very low win rate.
Real trading experts, like hunters patiently waiting for prey, will only decisively pull the trigger to enter a trade when three moving averages align in the same direction and move steadily. Here is an unconventional cold knowledge: In the cryptocurrency market, where volatility is extreme, and rapid rises and falls are common, the daily moving average trading strategy is not necessarily better when complex; rather, the simpler it is, the more effective it becomes. Just like true martial arts experts do not display fifty fancy moves but instead strike simply and powerfully. A breakthrough of the 5-day line upwards signals drawing the sword and launching an attack; a downward turn of the 60-day line signals sheathing the sword, taking profits, or cutting losses in a timely manner.
Step 3: Engrave trading discipline in your heart.
I have seen too many people write their carefully crafted trading plans on napkins, only to panic and tear up the napkin when they encounter a spike in the middle of the night, wiping the cold sweat away, discarding the previous plan into oblivion. The daily moving average trading strategy is both cruel and merciful; its cruelty lies in not allowing any room for luck or subjective conjecture; its mercy lies in providing a clear and explicit trading framework, forcing you to become a trading machine that executes signals strictly without emotions.
Here is a black humor-like true story: There was a trader who steadily profited for three years using the daily moving average trading strategy. Last year, during his wedding, just as the ceremony reached a critical moment, he suddenly received an alert about a break in the 5-day line. Without hesitation, he rushed to the bathroom, quickly closed his positions, and then returned to continue the wedding ceremony. Later, the bride was both angry and annoyed, pulling his ear to scold him. But when she saw the account balance, her attitude did a complete 180, silently replacing his monitor with a high-end one to support him in continuing to battle in the cryptocurrency space.
(Please deeply imprint this sentence in your mind: You may doubt your operations, but never question the signals emitted by the moving averages that have already formed a consensus.)
Investing in cryptocurrency is by no means a solitary game of brave warriors.
From 7500 USD to 150,000 USD, I don’t look at candlesticks, just focus on a 'On-chain Wolf King list'!
"In three months, 25 people break even, 3 people quit to follow me — this set of 'Wolf King Tracking Technique' is fully revealed tonight!"
When most people are still staring at candlesticks guessing rises and falls, I have already achieved a 1900% return with a 7500 USD principal + on-chain position list + three lines of code filter!
Today, I will break down this 'anti-human profit model' (coordinates of the Wolf King are attached at the end):
Core logic: Follow the Wolf King to eat meat, don't compete with retail investors for food.
Wolf King = Top ten addresses on the blockchain, they are the 'payers' of the market — if the Wolf King doesn't move, retail investors can't stir up a storm.
My filter only has three lines of code, but the win rate exceeds 80%:
Price halved within 72 hours: retail investors collectively surrender, large-scale relocation of positions.
Trading volume triples during the same period: Institutions begin to take over, and the plunge is a 'false drop'.
The top ten addresses hold their positions without any movement: the Wolf King is waiting for a 'lift'.
When the lights are on at the same time, I place an order directly, with a position of 30%, a stop loss of 2%, and a take profit of 20% with automatic splits.
Execute discipline: cage your emotions.
Stop loss cut at the neck: lose 2% and exit immediately, never 'wait to break even'.
Take profits in batches: split 20% profits into 5 parts, sell 1 part for every 4% increase.
Place orders and turn off the computer: walk, drink tea, sleep, let the market run by itself.
Public performance: 82 trades, 68 profitable, with a maximum drawdown of only 5% of the principal!
The truth about making a fortune: Emotions reach their darkest point, opportunities double.
When the screen is filled with wails, I click 'Buy' (retail investors cut losses, the Wolf King takes over).
When the group starts to hype 'eternal bull market', I press 'Sell' (the Wolf King distributes, retail investors take over).
Remember: It's better to watch the wolf king than to stare at the market; complex indicators are not as good as a single line of position!
True experts are driven by both 'strategy + discipline'!
In the cryptocurrency space, making a million means 'either relying on a big bull market and holding on, or hitting the jackpot with the right coin, or relying on high leverage to bet on the right direction.' But most people lose money, so don't just look at the stories of getting rich; first, think clearly about how much risk you can bear.
If you are also a tech enthusiast in the cryptocurrency space, click on the homepage.
Click on the avatar to follow me and gain access to first-hand information and in-depth analysis!
After more than ten years of trading cryptocurrencies, relying solely on this trading method (using moving averages to identify trends) allowed me to earn my first million from 100,000, with a win rate as high as 90%. It's simple and easy to learn, applicable to all types of trading, whether spot or contract!
Learn how to use moving averages to identify market trends. Master three reliable methods to help you discover and trade different maturity market trends.
Experienced traders can capture trends with their refined trading intuition. But for novice traders, having an objective method to discover and confirm trends is crucial. A robust framework allows novice traders to learn first and then improve. For this purpose, moving averages are one of the best tools you can use.
Ambitious system traders can use these methods to launch their strategy code. As you progress, you can refine them based on your understanding of the market.
Even for experienced traders, having an objective method to determine trends is beneficial. Experienced subjective traders can compare their subjective assessments with a fixed framework. This is the only way to test your trading intuition. If your intuition is not better than a strict trading system, there is no reason to use your subjective judgment.
Traditional method - Moving average price crossover.
The most basic method of determining trends using moving averages is price crossover.
● When the price crosses from below the moving average to above, it indicates a bullish trend.
● When the price crosses from above the moving average to below, it indicates a bearish trend.
This method has a problem, which is false signals. Fluctuations are false signals of trend changes. False signals occur when the market crosses the moving average multiple times in a short period. Due to this phenomenon, you may feel confused in a sideways market.
Fortunately, there are more reliable methods to check if a trend is forming. Here, you will learn three methods.
#1: Slope of the moving average.
This method is simple but useful. Just pay attention to the slope of the moving average.
● Upward sloping - Bullish trend
● Downward sloping - Bearish trend
In the figure below, the background color corresponds to the direction of the moving average.
The advantage of this method lies in its responsiveness and simplicity. However, it relies solely on moving averages. Therefore, it is easy to overlook the price behavior itself.
Trading tips: When the price drops below the SMA (Simple Moving Average), but the slope is still bullish, consider going long. Conversely, when the price rises above the SMA but the slope is still downward, look for short opportunities. (This method works better on SMA than on EMA (Exponential Moving Average)).
#2: Confirming with moving averages and wave points
Unlike the first method, this method forces you to focus on price behavior. It helps you avoid the common pitfall of relying too much on indicators.
The price wave points in the following examples are marked according to the rules taught in 'Price Action Day Trading'.
Bullish example - CME JPY/USD futures price 30-minute chart
How to confirm a bullish trend using wave points:
● Wave low forms above the moving average
● Price rises to a new trend high without touching the moving average
Please see the example below:
1. The low point of this wave forms above the moving average.
2. Then, the market reaches a new high without retracing to the moving average. This push confirms the bullish trend.
Bearish example - CME EUR/USD futures price 30-minute chart.
How to confirm a bearish trend using wave points:
● Wave high forms below the moving average
● Price drops to a new trend low without touching the moving average.
See the example below:
1. The high point of this wave forms below the moving average.
2. However, the market continues to rise and reaches a new low after touching the moving average. This development temporarily prevents the confirmation of the bearish trend.
3. Again, we observe that wave low points are below the moving average.
4. Then, the market reaches a new low without retracing to the moving average. This decline confirms the bearish trend.
#3: X candlesticks above/below X period moving average
This method is used to identify strong trends. At this stage, the trend is firmly established.
If you want to enter a new trend, this method is not suitable. But if you want to confirm that the recent trend is a strong trend with momentum, this is the way to achieve that.
Example: 20 candlesticks below the 20 SMA - Bearish.
The same logic applies to moving averages with different look-back periods. For example, 50 candlesticks above the 50 SMA indicates a bullish trend. Compared to 20 candlesticks, 50 candlesticks indicate a more stable trend.
Although this method is not very agile, it provides an objective formula for discovering market trends.
Additionally, in the hands of seasoned traders, this method can become a guide to dominating the market. Try to focus on the price behavior shown by X candlesticks. Typically, it will provide useful hints for traders.
For example, you see 20 candlesticks far above the 20-period moving average. If these 20 candlesticks form a steep ascent, the market may have exhausted itself. A reversal or consolidation may follow.
On the other hand, you may observe 20 candlesticks consolidating, slightly above the moving average. In this case, these 20 candlesticks being above the moving average are more likely to be a subtle bullish signal. At this time, trend trading is reasonable.
How to determine trends using moving averages - Trading instructions
As mentioned before, these methods are more reliable than moving average crossovers. But this increased reliability comes at a cost, manifested as a delay. You can only confirm the trend later.
This situation, where one advantage is sacrificed for another, is the norm in trading. The key is to find the right trade-off in the context of your trading plan. Even among the three methods above, you can see differences in reliability and timing.
In the three chart examples above, each chart uses different methods to determine the trend. Try applying the other two methods to each chart for practice. This exercise will help you understand their differences and discover more insights.
You might wonder: Why do I need to understand these methods in detail? I already know how to interpret them. Do I really need to delve into the details?
You should do this because these trend determination methods are not trading strategies. You have to integrate them into your trading strategy. To do this effectively, you must learn the price behavior behind each method.
Only then can you use the moving average as a powerful weapon.
From debt to a profit of 32,000 USD, I only changed one habit!!!
In the past, I always lost money. Every time the market fluctuated slightly, my account would lose half of its profits, and even the principal would suffer heavy damage.
Later, I only changed one habit — strict position control.
My account turned from debt to profit, ultimately making 32,000 USD.
The core of my position control method has several points:
1️⃣ Start with a small position, stabilize the principal — no matter how optimistic the market is, control every trade within an acceptable range to avoid a full liquidation in a single drawdown.
2️⃣ Roll over profits to increase positions — follow up on small profits in a timely manner to amplify gains, rather than betting everything on direction.
3️⃣ Strict stop loss — once the market reverses, stop loss immediately, do not harbor any lucky thoughts.
4️⃣ Rhythmic operation — increase positions when profitable, decisively reduce positions when the market is unstable, keeping account vitality.
Core Principles:
Preserve principal → Control positions → Roll over profits → Strict stop loss.
In the crypto space, making a million means 'either relying on a big bull market and holding on, or hitting the jackpot with the right coin, or relying on high leverage to bet on the right direction.' But most people lose money, so don't just look at the stories of getting rich; first, think clearly about how much risk you can bear.
If you are also a tech enthusiast in the crypto space, click on the homepage.
Click on the avatar to follow me and gain access to first-hand information and in-depth analysis!