Five years ago, one early morning, I was awakened by the red alarm sound at the exchange. In just three hours, all 6 million in my account was completely liquidated, leaving me with nothing. I stared at the continuously fluctuating negative numbers on my computer screen, feeling like I was nailed to the cross of reality!
Only after enlightenment did I understand: the cryptocurrency world is not a casino, but a battlefield. I borrowed 200,000 in capital from friends everywhere, continuously summarized failure cases, learned various trading skills and strategies, analyzed the market, and developed a trading method with a win rate of 90%. It took me 90 days to roll the funds up to over 20 million; it was truly not easy!
The market is always changing, but the rules do not. Your only goal is: to not be washed out in this big wave of sifting sand. If you feel confused, you might as well save this article as the starting point of your trading journey. It’s not about getting rich quickly, but about staying in the game.
Without further ado, here are 8 iron rules. Understanding them is tantamount to earning!
1. When the market crashes, if your coin only slightly declines, it indicates that there are market makers protecting it from falling. Such coins can be held with peace of mind, and future gains are certain.
2. Newcomers to buying and selling coins have a simple and direct method: for short-term trading, look at the 5-day line. As long as the coin price is above the 5-day line, hold it; once it falls below, sell it. For medium-term trading, look at the 20-day line. As long as it is above the 20-day line, hold it; if it falls below, exit. The best method is the one that suits you, and the key is to persist in execution.
3. If the main rising wave of a coin has formed and there is no obvious increase in volume, then buy decisively. Continue to hold during volume increases; if volume decreases but the trend is not broken, also hold. If the volume decreases and breaks the trend, quickly reduce your position. After a short-term purchase, if the coin price does not move within three days, sell if possible. If the coin price drops after purchase, and losses reach 5%, cut losses unconditionally.
4. If a coin has dropped 50% from a high position and has continuously fallen for 8 days, it indicates that it has entered an oversold state, and a rebound may happen at any time. Consider following up.
5. When trading coins, choose leading coins, as they rise the most when the market is bullish and are the most resistant to declines. Do not buy just because the coin price has dropped significantly, and do not avoid buying because the price has risen significantly. When trading leading coins, the most important thing is to buy at high levels and sell at even higher levels.
6. Trade according to the trend; the price at which you buy is not about being lower but about being more suitable. Do not easily call the bottom during a decline; give up those coins that perform poorly. The trend is the most important.
7. Do not become impulsive due to temporary profits; understand that sustained gains are the most difficult. Take a serious review and see whether your profits are due to luck or skill. Establishing a stable trading system that suits you is the key to continuous gains.
8. Do not force trades without sufficient confidence. Holding cash is also a strategy; learning to hold cash is very important. When trading, the first consideration should be capital preservation, not profit. The competition in trading is not about frequency but about success rate.
Friends, today I’m going to share three classic uses of the EMA indicator. Once mastered, you’ll have more confidence in your trading.
Identify major trends.
If you want to identify the major trend of the market, the 'zero line crossing method' is definitely worth studying. This method is simple and practical; with just one line, you can have the same analytical skills as many professional technical analysts. This line is the DIF line of the EMA indicator. Let's first understand the EMA indicator. Take Bitcoin (BTC) as an example; we set the parameters of the EMA indicator to 12 and 26 and analyze it in a 1-hour cycle. You will find that every time a golden cross occurs, it often presents a good entry opportunity.
Take Bitcoin (BTC) as an example; we set the parameters of the EMA indicator to 12 and 26 and analyze it in a 1-hour cycle.
You will find that every time a golden cross occurs, it often presents a good entry opportunity.
To put it simply, the EMA indicator creates a DIF line through the two parameters of 12 and 26, which can effectively identify medium-term trends.
Whether it’s a golden cross or a death cross, the market usually shows a good trend afterward.
In fact, the actual performance of these indicator parameters is similar to the DIF line of the MACD indicator.
For ease of operation, you can also directly use the MACD’s DIF line for analysis.
This is the role of the DIF line.
It should be noted that the larger the cycle, the stronger the trend direction of the DIF line. For example, we can choose a 4-hour cycle to use the DIF line to identify the trend direction.
When the DIF line falls below the zero axis, we can take some profits and be cautious about going long.
When it breaks above the zero line, combined with other indicators and large order data, we can be more confident in going long.
Once the zero line crossing occurs, it indicates that a trend has formed. Before this trend ends, there will be many entry opportunities.
Therefore, it is recommended that everyone treat the DIF line as a trend direction indicator. Its underlying logic is composed of EMA12 and EMA26, which can be understood as part of the EMA indicator.
Many people think that the EMA indicator has lag, but this is a misunderstanding. The EMA indicator uses a weighted average algorithm, giving more weight to recent prices. Therefore, once there is an abnormal fluctuation in recent prices, it will immediately show on the EMA indicator, and it can also reflect the price level over a period of time. The EMA indicator achieves a good balance between sensitivity and stability, making it very suitable as a technical analysis tool. In summary, use a 4-hour cycle to determine trends; a cross above the DIF line indicates bullishness, and a cross below indicates bearishness.
Find EMA signals.
1. Resonance signals.
This is a very stable trading method.
I have a set of EMA resonance algorithms here. Its advantages are many signals, accurate entry, and fast exit. The solid green arrow represents the start of bullish resonance, while the hollow arrow represents the end of bullish resonance. If the market trend is upward, combined with these signals, we can decisively enter the market. In a downward trend, corresponding short signals will also appear.
My suggestion is to first confirm trends with the DIF line, and then try using this set of resonance indicators. You can also change the parameters of the resonance yourself. Currently, I am using resonance parameters composed of 6 EMAs.
This pure EMA bullish resonance indicator is easy to understand: when all EMAs show a bullish arrangement, we open long positions; when they show a bearish arrangement, we open short positions. It can provide us with great entry and exit opportunities. If you cannot find a suitable reason to enter the market and easily become anxious, then the bullish and bearish signals from EMA are very suitable for you.
It can help you not miss the best entry points. Simply put, use the DIF line to determine the trend and resonance signals to find entry timing. Combining the two will greatly increase the probability of making money.
Here, students can subscribe and change to the EMA resonance indicators they want.
I've done the third thing!
This time I recommend this set for everyone to try.
DIF line determines trends, resonance signals find entry points, paired with profit-making~
Next, let me show you the actual trading and make some recommendations.
First recommendation: AI grid.
Recommendation reason: After breaking new highs, a small fluctuation will come, making it very suitable for grid trading. Automated low buying and high selling, earning while lying flat.
Why does the host recommend this? Because I have been using AICoin's AI grid for trading.
Running the grid continuously since July 31, 2024.
It should be noted that if there is a period when the price breaks above or below the grid, we need to readjust the upper and lower limits.
This is the new grid upper and lower limit range I set after breaking new highs. #Trading strategy misconceptions
Of course, my grid funds are not very large, only 700 U, but the results are very good, and the returns are basically continuously increasing.
Second recommendation: arbitrage.
The host has been running positive arbitrage, making money from funding fees.
I have also been conducting positive arbitrage trading, profiting by earning funding fees. The cost I invested is about 30,000 U, and I can basically receive profits three times a day, just like collecting money on time. #meme coin sentiment
If you have a large amount of capital, arbitrage is a very good choice; its advantage is stability, and making money is quite certain.
Some friends with a capital of 100,000 U or more have also made a lot of money using AICoin’s arbitrage module, and the speed is fast and the returns are stable. In short, there are many opportunities to make money in the market, and arbitrage is very suitable for large funds to participate. That kind of certainty is really great. #arbitrage trading strategy
The above are some of my views and insights. If you find it helpful, feel free to like and save it. I am Lao Chen, someone who has experienced three cycles of bull and bear markets, specializing in logical coin selection and technical timing. I only trade within my understanding, and every direction has been confirmed by the market!
No matter how diligent a fisherman is, he will not go out to sea during a stormy season, but will carefully guard his fishing boat. This season will pass, and a sunny day will come! Follow Xiao Xun, and I'll teach you to fish and how to fish; the door to the crypto world is always open. Only by following the trend can one have a life that follows the trend. Save it and remember it!
A single tree cannot make a boat, and a lonely sail cannot sail far! In the crypto world, if you do not have a good circle and do not have first-hand news from the crypto world, I suggest you follow me, and I will guide you to profit. Welcome to join the team!!!
