I have been trading cryptocurrencies for eight years, making significant profits during the bull markets, facing 'bankruptcy' twice, and now successfully supporting my family through trading, having withdrawn over 8 million and still having over 26 million in the exchange. Honestly, I've made it through!
Only by sticking to the classic trading rules of moving averages have I almost consumed all the profits from my positions. The path is simple; firmly adopt this type of trading system, and over time, this system will become your cash machine.
The trading system includes a comprehensive framework encompassing the trader's trading philosophy, trading signals, risk management, emotional control, and more.
Trading Philosophy: The trader's understanding of the market and trading objectives, such as whether to pursue trend trading, swing trading, or other specific types of trading opportunities.
Trading Signals: Specific buy and sell point indicators, such as signals generated by technical analysis indicators (e.g., moving averages, MACD, etc.) or information based on fundamental analysis.
Risk Management: Setting stop-loss points, take-profit points, and capital management strategies to ensure that losses can be controlled even in unfavorable market conditions.
Emotional Control: Maintaining calm decision-making ability and avoiding irrational trading behavior caused by greed or fear.
Execution Difficulties: Includes overcoming psychological barriers, strictly executing the established trading plan, and continuously optimizing and improving the trading system.
I would like to share the correct usage and key details of the million-dollar value indicator EMA for medium to long-term trading!
1. Indicator Overview
The Moving Average Convergence/Divergence (MACD) is a common technical analysis tool in stock trading, proposed by Gerald Appel in the 1970s, used to assess the intensity, direction, energy, and trend cycles of stock price changes to grasp the timing for buying and selling stocks.
The MACD indicator consists of a set of curves and graphs calculated from the difference between the fast and slow exponential moving averages (EMA) of closing stock prices or indices. 'Fast' refers to the EMA of a shorter period, while 'slow' refers to the EMA of a longer period, with the 12-day and 26-day EMAs being the most commonly used.
