Today, I have achieved financial freedom, but I still maintain my love and exploration of blockchain technology. I know that the crypto world is full of opportunities but also harbors risks. Only by continuously learning and staying rational can one ride the waves in the turbulent sea of cryptocurrencies. My experience analysis:
Learning is fundamental: Understanding blockchain technology, the principles of digital currency, and market trends is the prerequisite for investment.
Rational investment: Do not blindly follow trends, invest according to your own risk tolerance.
Diversify investments: Do not bet all funds on one project; diversifying investments can reduce risks.
Long-term holding: The digital currency market is highly volatile, and holding quality assets for the long term is more likely to yield substantial returns.
Stay calm: Do not be influenced by market emotions, maintaining a calm mind is crucial for making correct decisions.
The stories of getting rich in the crypto world are certainly enviable, but the risks and efforts behind them cannot be ignored.
Rules of trading cryptocurrencies
First, for those cryptocurrencies that have a complex situation and are unclear to you, do not rashly enter; pick the soft persimmon first, and trading is the same.
Second, do not invest all your money in the same coin at once, even if you are very optimistic about it, and even if it turns out you were right later, do not buy all at once. Because the market is unpredictable, no one knows what will happen tomorrow.
Third, if you mistakenly buy a currency in a downward trend, you must sell quickly to avoid further losses
Fourth, if the currency you bought has not yet suffered losses but has entered a downward trend, you should quickly exit and observe
Fifth, for currencies that are not in an upward trend, it is advisable to pay less attention. Regardless of what happens in the future, do not accompany the main force to build positions. Retail investors do not have time to waste with them.
Sixth, do not fantasize about making money while always trading short; frequently entering and exiting may bring you pleasure but will cost you a lot of money. The only beneficiaries are the exchanges, and you won't have that high level; you are not the market maker. Do not buy too many coins, preferably not more than 10; you do not have the energy to watch over them. This is like trying to marry five wives; even if you are physically capable, you cannot satisfy them all. The story of Wei Xiaobao only happens in novels.
Seventh, this coin is very cheap now, it has dropped a lot, is not a reason for you to buy in, never!! It could be even cheaper!!!
Eighth, this coin is very expensive now, it has risen a lot, is not a reason for you to refuse to buy or sell. It could go even higher!
Advice
1. Do not easily throw away bull coins; prioritize bull coins, take half the way, and focus on both hot and strong coins; investment and speculation are both suitable, take the whole way.
2. The most important thing for traders is adaptability in the market
3. Qualitative analysis must be done well. Long-term qualitative analysis, selecting coins on the weekly chart, identification on the monthly chart, and tracking on the daily chart.
4. Must follow rules, use Bollinger Bands or moving averages you think are feasible to look at the market conditions
5. Ability is not taught, all depends on technical skills, repeat successful experiences, and make earning money a habit; earning regularly is more important than earning a lot.
A trading strategy with an over 80% win rate, I spent 2 years, hundreds of days and nights, drawing thousands of charts, and summarizing these top trend continuation chart patterns. Once learned and mastered, the crypto world will be your 'ATM'.
If time could flow backward
Flow back to the time when I just entered the trading market
I would hope someone reminds me of the importance of yin-yang lines
Tell me this is the essence of trading
Then I won't pursue a foolproof strategy
Wasting time pursuing different technical indicator parameters
Then I won't have to take so many detours
Want to profit in the market
Especially in the cryptocurrency world
You may not need to know some profound economic theories
You may not understand how to interpret the indicators behind each economic data
You can ignore all technical indicators even more
Completely unnecessary
But one thing you must thoroughly understand
This matter is the yin-yang line (K-line)
If you are just starting to engage in trading
You may feel that yin-yang lines are very complex
Completely unable to understand what's going on
But do not worry
This matter is not as complicated as imagined
I will use a very simple and clear method in this article
Taking you step by step from shallow to deep understanding of this matter
Friends who like this article remember to give me a thumbs up at the bottom
Your support is my motivation!
Within a chart
Nothing is more important than price
And the yin-yang line uses a graphical method
Presenting the price fluctuations within a specific time period
The results of the bulls and bears clashing
How the market thinks about direction
Which side has control, etc.
All the above things can reveal some clues through the yin-yang line
Yin-yang lines are the threshold to enter technical analysis
If we understand the meanings behind each yin-yang line
Regardless of which type of technical analysis you personally prefer
Can achieve twice the result with half the effort
Next
I will guide everyone to interpret the yin-yang line in three levels
First, I will break down the yin-yang line into 4 parts
To interpret its surface information
Then I will summarize the yin-yang line into 5 different levels of strength
To interpret the hints that yin-yang lines bring to us
Finally, I will introduce 4 of the most common yin-yang line patterns
How to define them,
Their meanings and application methods
After reading, you will understand
How to find a wealth of information that helps you analyze the market using yin-yang lines
At the same time, you will understand
Why do I say that the yin-yang line is the foundation of market profits
We will start immediately!
Novice on the road
Novice on the road
We start from first grade: [Novice on the road]
Here I will teach everyone how to interpret the information that a yin-yang line superficially presents to us
When dissecting a yin-yang line
Can be divided into 4 key points
These are color, open-close high-low, body, and shadow line
Before discussing the four key points, we must first understand one thing
Each yin-yang line represents the price fluctuations within a specific time period
If you are using a one-minute chart
Each yin-yang line records the price fluctuations within that minute
If you are using a daily chart
Each yin-yang line records the price fluctuations within the past 24 hours
Color is our way to distinguish whether this yin-yang line is a yang line or a yin line
Generally speaking, red represents yin lines
And green represents yang lines
The meaning of a yang line is that the closing price is higher than the opening price in a specific time period
And yin lines are the opposite
When the yin line ends
The closing price is lower than the opening price
So we can know one thing from the color of the yin-yang line
It is whether the temporary control lies in the hands of buyers or sellers
Next is open, close, high, low
I'm sure you have mastered these basic knowledge
This matter is very simple
We will each use yin lines and yang lines as examples
Yang line is open high, close low in order
As mentioned earlier
Its closing price is above the opening price
Yin lines are high opening, low closing in order
Opposite to yang lines
Its closing price is lower than the opening price
Next, let's talk about the body line
The body means the actual price movement range within a specific time
Taking a daily chart's yin-yang line as an example
For example, its opening price this morning is 10 yuan
After a day of repeated trading
No matter if it once rose by 15 yuan
Or whether it has ever dropped by 7 yuan
This position will only record the price at the moment the yin-yang line ends
Its price is exactly what it is
Finally, there is the shadow line
The shadow line represents the high and low prices that have been reached
Many important pieces of information can be seen from the shadow line
I personally believe that the shadow line is a very important part of interpreting the market
Here I will temporarily hold off on details
In the last part, I will use the yin-yang candle patterns (K-line patterns)
Explain it to you in more detail
The secrets behind yin-yang nature
OK
Congratulations on completing the first level [Novice on the road] course
Next
We start to delve deeper
If using watching a movie as a metaphor
When you finish appreciating a play
You know the development of the story plot,
The information the movie superficially conveys to you
Would you want to think further about this movie?
It wants to convey a deeper meaning and information
Will you have some insights and personal interpretations?
If this concept were applied to the market
Each K-line represents a story
This story has its length
Short can be less than a minute
And long ones can exceed a month
Depends on what time chart you are using
Every story has a beginning, process, and end
On the surface, this daily chart's yin-yang line tells you:
My opening price is 10 yuan, within 24 hours it once reached a high of 18 yuan. The previous lowest point was 7 yuan, and my closing price is 13 yuan.
These are the plot points of a story
If we delve deeper into interpreting and reflecting on this story
You will have many surprising discoveries
And these discoveries can effectively help you interpret the market
Next, we are about to enter the second grade [The Secrets Behind Yin-Yang Lines]
I will use several examples according to intensity
More detailed explanation for you
The secrets behind different types of yin-yang lines
Here I will summarize the yin-yang line into 5 levels of strength
First type
The body is very long
And there is almost no shadow line
For a very strong yin-yang pattern
The body represents that one side almost completely has control
Taking this yang line as an example
The buyer has intentions
And has the ability to push prices up within a specific time
On the other hand
The shadow line part is almost invisible
Represents the absence of or very weak opposing forces
We see that the forces going up or down are almost smooth sailing
It represents that the majority of participants in the market agree that prices should move in this direction
Second type
We see that this type of yin-yang line has a very long shadow line
It was once a very large body of a yang line or yin line
But has previously faced strong opposing pressure
The defending side shows strong determination and power
Ultimately reclaiming lost ground successfully
The yin-yang line still has control at the end
Although its body is relatively short
But actually, if we think a little deeper
Then you will understand
Its movement distance is actually not shorter than the first type of yin-yang line
This type of yin-yang line is called a shooting star or hammer line
We will look at some chart examples together later
OK
Arriving at the third type of yin-yang line
The body of this type of yin-yang line is actually not considered short
But there is one place that will greatly reduce our impression of it
This place is the shadow line
Let's take yang lines as an example
The price once rushed to a high point
But when faced with opposite forces increasing their holdings
We see
This yang line has a shadow line at the top
The shadow line represents rejection
That is, the sellers reclaiming some lost ground
Compared to the first two types of unwavering commitment
We see hesitation and reservation here
Fourth type
This type of yin-yang line
It is not only a short body
And each has a long wick above and below
Represents that both sides have launched attacks
But neither side is willing to back down
Neither side has enough strength to break this deadlock for the time being
The only way we can judge whether buyers or sellers still retain a small portion of control is through color
Everyone may feel that this type of K-line is very similar to the second type
But because they end at different places
So the overall meaning is completely different
Another major reason is that the shadow line proves that the market temporarily has no clear direction
We call this type of yin-yang line a shooting star or hammer line
It may be a pause in a trend
Or the market is gathering strength to change direction
Generally, when the market is in a directionless situation
We should not enter the market
Fifth type
Next, we arrive at the weakest yin-yang line
We see buyers or sellers launching attacks up or down respectively
Encounter very strong resistance and rejection
Ultimately ended in failure
It once seemed to own the whole world
But unfortunately, it was counterattacked
And it is continuously retreating
At the end of the yin-yang line
Can only guard your last remaining territory
The situation is quite dangerous
If you are making trend-following trades at this time
Then you really have to be careful
