From losing 3 million to making over 40 million, this experience has made me realize that investing is not just about accumulating wealth but also about mental growth. The cryptocurrency market is like a vast ocean, where some sink while others are reborn. I hope my story can give you some inspiration and strength!
Most of my friends in private equity mainly look at naked K, and I have also researched it myself. So what do real experts understand from candlesticks?
The answer is - emotion.
Candlesticks in this market are divided into two types.
< Type One > The candlestick chart drawn by capital consensus.
The candlestick chart drawn by capital consensus is an effective candlestick. This is the final result of the market's capital game. Common speculative trading and fund group trading are actually candlestick patterns drawn by capital consensus. This type of pattern not only has effective candlesticks but also has effective trading volume and moving averages. Behind these candlesticks, you can see the market sentiment.
< Type Two > The candlestick chart drawn by the controlling stockholder.
This type of candlestick is actually invalid. The reason is simple: absolute controlling stockholders can draw candlesticks however they want. These candlesticks have not undergone capital games, they are merely the unilateral pressure from stockholders on retail investors. It can be said that these candlesticks are purely drawn by stockholders based on their "mood", aiming to attract retail investors to take over, ultimately realizing high-level cashing out and harvesting.
As an expert, you first need to judge the type of candlestick based on various signs, then enter the market based on the technical signals of the candlestick. If you mistakenly enter the situation of the second type of candlestick, you will likely find it hard to retreat unscathed.
So how to do well in cryptocurrency trading? Once a person enters the financial market, it is difficult to turn back. If you are currently at a loss but still confused, and plan to consider cryptocurrency trading as a second career in the future, you must understand the "candlestick strategy", understanding and comprehending it can save you from many detours, all based on personal experiences and feelings, I suggest you save it and ponder it repeatedly!
How to use time outside of 8 hours for trading?
Stage 1: Understanding the market
First, Stage 1, understanding the market. This stage requires you to spend 1 month learning 3 things:
The first thing: Candlesticks.
(Figure 1: (Basic chapter) Assignment 3 - Candlestick basic assessment)
When a chart is placed before you, you should at least be able to understand the candlestick, right? You can't have "it recognizes you, but you don't recognize it". The candlestick is just a visual representation of the market price fluctuation rules, but you can't just be satisfied with looking at the opening, closing, high, and low of the candlestick, you also need to master the line fluctuations behind the candlestick.
In short, you need to learn to translate the line behind each candlestick. (See Figure 1)
(Figure 2: (Naked K) Assignment 2 - Basic price action assignment)
And you also need to distinguish whether each candlestick is a bullish trend candlestick, a bearish trend candlestick, or a non-trend candlestick? (See Figure 2)
Trend candlesticks: Generally refer to those that have successfully broken through (may have broken through a range, a structure, or even the extreme point of the previous candlestick), representing the initiation or continuation of a trend, symbolizing the strength of the trend, and allowing you to easily recognize whether the market is currently dominated by bulls or bears.
Non-trend candlesticks: In short, they are candlesticks that do not allow you to determine at a glance whether the bulls are dominating the market or the bears are dominating the market. This type of candlestick represents that the market temporarily has no direction and is in a state of tug-of-war between bulls and bears, the market has returned to a point of re-selection of direction. Think carefully, haven't you often impulsively entered the market because you saw non-trend candlesticks, leading to losses?
The second thing: 12 golden K and signal candlesticks, entry candlesticks.
(Figure 3: Horizontal market 12 golden K wallpaper)
What is the 12 golden K: It is the 12 groups of candlestick combinations that I personally summarized that can help you make money in the market. If you do not have this high-definition 12 golden K chart on your screen, please contact the assistant through the public account to get it for free (See Figure 3).
What is a signal candlestick: Simply put, it is the candlestick that prepares you to enter the market, it is the moment you see the starter raise the starting gun and squat down, while the turning candlestick in the 12 golden K is the simplest and most common signal candlestick I have organized.
(Figure 4: Bullish trend candlestick & bearish trend candlestick & effective entry candlestick)
What is an entry candlestick: It is the candlestick that truly makes you decide whether to click to enter the market, it is the moment you hear the starter pull the trigger and hear the gunshot and then sprint away. The signal candlestick is preparation, the entry candlestick is execution. (See Figure 4)
The third thing: Basic candlestick patterns and structures.
When we open the market, aside from the additional indicators we add (generally referring to moving averages, trading volume, indicators, etc.), only the candlesticks remain, but do not forget.
We must know what the market is currently doing before entering.
Is there a trend or not?
Is it going up or down?
Is it the late stage or early stage of an uptrend?
Which trend should I follow?
How should I intervene in this trend?
Which trend reversal should I make?
Where should I lie in wait for opportunities?
Clearly, these problems cannot be solved with just the two skills mentioned above, so we must apply the knowledge we have learned about market structure, patterns, etc., to the market.
(Figure 5: Special training camp focused practice: All price action patterns)
(Figure 6: Special training camp focused practice: All price action patterns)
Taking price action as an example: you need to quickly identify the parts we learned in (06-Naked K) like bullish flags, bearish flags, terminal flag shapes, simple pullbacks, complex pullbacks, trading ranges, FB structures, SB structures, etc. (See Figure 5, Figure 6)
And you also need to know which segment the current simple pullback belongs to?
What level is the complex pullback I currently see?
How to measure distance? How to determine the starting point of a certain trend's increase or decrease?
(Figure 7: Special training camp focused practice: Trend types in the Theory of Tangle)
If we take the Theory of Tangle as an example: you need to quickly identify the parts we learned in (13-Panda Talks Theory of Tangle) such as the core, trend types, conjunction laws, termination methods, core levels, and whether there is a termination in the current market, etc. (See Figure 7)
Thus judging which trend is closest to us?
What is the trend type of this trend?
How did the previous trend type conclude?
Is the current incomplete trend worth following?
This is somewhat like building a house, we need to ensure that our point skills are fine first, such as using cement, building walls, drawing blueprints, tying rebar, this is called point skill. Then we can think about how to stack a wall, build a room, build a house.
Alright, up to now, the work of achieving stable profit in Stage 1: Understanding the market is nearly complete, next we talk about stable profit in Stage 2: Deliberate practice.
Stage 2: Deliberate practice 4
The so-called deliberate practice is to transform the knowledge we learned in Stage 1 into our skills, just like if you only study how to breathe and hold your breath on shore, you will never learn to swim!
Step 1: Read the chart
(Figure 8: Special training camp focused practice: Using the Theory of Tangle & types of trends to read charts)
(Figure 9: Special training camp focused practice, reading the chart with price action)
First, let's talk about Step 1 of deliberate practice: Reading charts! Reading charts refers to market analysis.
You need to know what this market in front of you is currently doing?
Is there a trend or not?
Is it going up or down?
Is it the late stage or early stage of an uptrend?
Which trend should I follow?
How should I intervene in this trend?
Which trend reversal should I make?#比特币巨鲸换仓以太坊
Where should I lie in wait for opportunities?
Did we learn 3 things in Stage 1? Now can you try to connect those 3 things in your mind to draw conclusions and answer the above questions? (See Figure 8, Figure 9)
Step 2: Identify all trading opportunities on the chart
(Figure 10: Special training camp focused practice: Identify all opportunities)
(Figure 11: Special training camp focused practice: Identify all opportunities)
Next, Step 2: Identify all trading opportunities on the chart.
You have now initially acquired the skill to analyze the market by connecting the knowledge points in your mind and drawing conclusions. So your second step is very simple: try to identify all the entry opportunities you can find from a retrospective perspective, the more the better. (See Figure 10, Figure 11)#比特币远古巨鲸持续出清
For example: If a rising wedge structure appears at the beginning of a downtrend, then I will enter short when a low 1 or low 2 appears at the top of the rising wedge, and mark it on the chart;
For example: In a downtrend that is not at its end, if you see an FB structure, then mark this trading opportunity on the chart;
For example: At the beginning of an upward trend, look for high 1 or high 2 at the bottom of a horizontal trading range to enter long, and mark it on the chart;
Step 3: Try to determine your favorite and strongest trading type
When you have done enough deliberate practice in Step 2 (that is, finding all trading opportunities), such as practicing 50, 100, or 200 times. At that time, the answers to the following questions will automatically emerge in your mind:
"It seems I prefer to reverse this xxx pattern"
"It seems I prefer to reverse this type of pattern"
"It seems that entering at high 2 in xxx situations has a higher success rate than entering at high 1"#币安Alpha上新
(Figure 12: Special training camp focused practice: Write your own trading system & basic winning rate)
(Figure 13: Special training camp focused practice: Write your own trading system & basic winning rate)
Yes! Very good, just like that, we try to write down these rules until gradually, your first trading system in life will emerge. Although it may seem a bit simple, even a bit rudimentary, that's okay! It is something you have painstakingly created day and night, derived from repeated reviews, and you have even generated basic data based on this system. (See Figure 12, See Figure 13)
You see, as long as you follow the correct scientific training methods, having a trading system of your own isn't that difficult, is it?
Stage 3: Boldly dive in 5
Alright, after experiencing the deliberate practice of Stage 2, after you continuously refine your trading system, one day you finally came up with a trading system with a high win rate, then you can boldly dive in!
What you need to do now is simple, take out 100 yuan, and trade in the variety and cycle you are most familiar with, aiming for 2 purposes:
1. Find a way to quickly lose this 100 yuan to deliberately practice your habitual fear of loss.
2. Compare the results you obtained in real trading with the data you got in Stage 2, and see how much it differs? What is the degree of restoration?
If you are also a tech geek, take a look at the following chart:
There are also 2 requirements for doing real trading:
1. Only allow trading opportunities within your trading system.
2. You only have two bullets in your gun, which means you can only seek revenge once with the same entry logic after a stop loss.
Then the outcome of this matter can only have 2 possibilities:
For example, if the data you obtained in Stage 2 shows a win rate of 70%, with an actual profit-loss ratio of 1.8, but after making 20 or 50 trades in Stage 3, the data shows a win rate of 80%, with an actual profit-loss ratio of 2.5; or a win rate of 40%, with an average actual profit-loss ratio of 1.3...
In short, if there is a big difference between the two, then something must have gone wrong!
The most common ones are:
Can't control your hands, frequent revenge trading, getting too emotional;
Or it could be said not to follow trading discipline, trading opportunities outside of your system;
Or it could be influenced by temporary greed and noise, easily adding unverified strategies and techniques to the system;
Or because trading opportunities in familiar varieties or cycles are too few, easily replicate this system to unfamiliar varieties or cycles.
In fact, it can be summarized into two categories: technical and non-technical, we won't discuss non-technical for now.
If it's a technical issue, then we need to go back to Stage 2, integrate these new techniques and strategies we encounter into the old trading system, reanalyze, and then return to Stage 3 for continuous iteration. So you see, this is very much like cooking. The first time you cook, there are always some problems, whether it's too bland or too salty or sticking to the pan, but that's okay, we can summarize the experience and do it a few more times. Therefore, whether it's cooking braised pork or learning technical analysis, Stage 2 and Stage 3 must be iterated cyclically.
Then the second outcome is that the real trading data is very close to the review data.
To be honest, the likelihood of this is very small. Why do I say that?
Because it is humans, not cold machines, executing the trading system, we cannot achieve 100% restoration of the system derived from the practice field right away, achieving 70% restoration is already quite good. But if you really achieved very close data in the first round, it would be like cooking for the first time and producing Michelin-level food, then congratulations, you succeeded! Truly a gifted player!
Stage 4: Stable profit 6
Alright, up to now, I have shared my successful practice methods that I have summarized over the years without reservation. I hope it can help you!
The best time to plant a tree was ten years ago, or it's now! In 2025, let us use candlesticks as a pen, with fluctuations as ink, to write our own path to financial freedom outside of 8 hours. That's all for today, I am Yan An, who is good at simplifying complex problems, see you next time!
Even the hardest-working fisherman wouldn't go out to sea in a storm but would carefully guard their fishing boat, this season will eventually pass, and a sunny day will come! Follow me, teach you to fish and how to fish, the door to the cryptocurrency world is always open, act in accordance with the trend to have a life in line with the trend, save it, and remember it in your heart!