I was fortunate to meet a senior in the cryptocurrency field who entered the market with 100,000 yuan and now possesses assets worth 42 million. His words enlightened me: "The cryptocurrency world seems like a fierce competition, but in reality, many are just drifting along. If you can master your emotions, this market will become your automatic cash machine."
After years of battling in the cryptocurrency world, a mature trading strategy is your secret weapon for victory. The following practical tips are distilled from blood and tears of experience:
[Entry Rules] Approach the cryptocurrency world with caution, prepare thoroughly before taking action; build positions gradually, and do not recklessly bet everything.
[Sideways strategy] During low-level consolidation with new lows, boldly increase positions; during high-level stagnation and subsequent surges, decisively liquidate without hesitation.
[Volatility response] Sell quickly to prevent a drop during a sudden rise, enter quickly to seek opportunities during a plummet; observe quietly during sideways movements, hold firm to avoid losses; hide risks during rapid rises, take profits promptly; gradually add in during a slow decline, average down costs and wait for spring to arrive.
[Timing] Do not chase sales during low volume surges, be cautious when catching falling knives; refrain from trading during sideways stalemates, buy on bearish candles and sell on bullish ones; dare to build positions during early sharp declines, and swiftly exit during early surges; do not chase prices up during midday surges, and buy on the next day after a sharp drop; do not cut losses during significant downturns, maintain a neutral stance; gradually add in during deep holds, take profits when the opportunity presents itself and curb greedy thoughts.
[Risk management tips] Calm seas hide undercurrents, a surge must be followed by a correction; candlesticks converge into triangles, be wary before a trend change; watch for support in uptrends and resistance in downtrends; over-leveraging leads to self-destruction, stubbornness will face setbacks; the market's unpredictability guides entry and exit, acting in accordance with the trend is the way to long-term success.
Trading coins is essentially about cultivating the mind; greed, anger, ignorance, sloth, and doubt are the enemies; chasing highs and killing lows leads to major mistakes; a calm heart can stabilize the situation.
In addition to the mnemonic, I will share several practical techniques that both beginners and seasoned traders can benefit from:
Box fluctuation method: The market is in a fluctuation 70% of the time; use the BOLL indicator and box theory to buy low and sell high between the upper and lower bands. Strictly follow short-term discipline, take profits promptly, and do not be greedy.
Breakout method: A prolonged period must change; when the price breaks through key levels, follow the trend. You need to have accurate judgment on the timing of the trend change.
Trend-following method: In a one-sided market, rely on candlesticks, moving averages, trendlines, and other indicators to enter during pullbacks. You must be proficient in using technical tools to capitalize on the trend.
Key level game method: Layout near support and resistance levels, combining trendlines, moving averages, Bollinger Bands, and other indicators to improve trading success rates.
Pullback rebound method: After significant fluctuations, there must be corrections, using candlestick patterns to capture turning points. You need to cultivate a keen sense of the market to accurately grasp buy and sell timings.
Time selection method: The early session's moderate fluctuations are suitable for conservative investors, while the late session's dramatic movements are apt for aggressive players. Choose your battlefield according to your style and do not blindly chase highs and kill lows.
Getting to know A Xin will surely benefit you; helping others is helping oneself. I hope that regardless of how the market changes, we can always walk together, smiling at the crypto circle ten years from now.
Trend followers' secret techniques: Lock in tenfold opportunities over ten years.
The secret to wealth for long-term trends:
1. Halving cycle
Layout: 180 days before Bitcoin halving, pre-allocate BTC, BCH, and other halving coins, holding until 30 days after halving.
2. Leading coins' supplementary laws: When the leading coins in the market rise by 200%, prioritize selecting second-tier coins in the same sector that have not risen by more than 50%.
3. Technical triple verification: Weekly MACD golden cross + daily breakout of the box + hourly volume-increasing bullish engulfing, forming a golden buying point.
4. Institutional position analysis: Glassnode data shows that when large addresses continue to accumulate, combined with a surge in on-chain trading volume, it is a signal to start.
5. Bear market fixed investment strategy: Invest 10% of the principal monthly, focusing on blue-chip coins such as BTC and ETH, and continue investing for 12 months to achieve returns exceeding 300%.
Risk warning: The above strategies need to be adjusted according to real-time market conditions; it is recommended that beginners first validate with a demo account, and the loss of a single trade should not exceed 2% of the total capital. The market has risks; investment requires caution.
1. Introduction
At this stage, you may have already mastered knowledge of many chart patterns, such as double bottoms, ascending triangles, and inverted head and shoulders, as shown in the figure below.
However, as you understand, not all chart patterns will consistently be effective. In this situation, what measures should you take when these chart patterns fail to achieve the expected results? As shown in the figure below.
As the scope involved expands further, how will you take action? As shown in the figure below.
At that time, what kind of trading activities do you plan to engage in on the market? As shown in the figure below.
It is at this moment that the triple bottom pattern
It shows its unique application value, as shown in the figure below.
The triple bottom pattern is one of the relatively rare chart shapes currently in the market; however, it remains an indispensable tool in a trader's toolbox, even in unstable market conditions.
In this guide, you will learn the following:
(1) A detailed guide to the operational mechanism of the triple bottom pattern;
(2) How to avoid misjudging the triple bottom pattern (and the appropriate measures to take in this situation);
(3) Correct trading and analysis methods for the triple bottom pattern;
(4) A step-by-step procedure on how to accurately define and execute triple bottom trades.
2. What is the triple bottom and how does it work?
The triple bottom pattern is like a talented superstar stepping onto the market stage with its unique gift, starting at the neckline, which is the support of the entire structure, as shown in the figure below.
Subsequently, in the dazzlingly complex performance presented by the market, the three bottoms appear successively, each playing an indispensable role in this captivating shape, as shown in the figure below.
This is akin to a meticulously choreographed synchronized dance, capturing attention and laying the groundwork for potential trading opportunities; this pattern is indeed easy to recognize.
Now that you understand what this pattern looks like, how does the triple bottom pattern form? If you are pondering this question, you are moving in the right direction, as understanding 'why' something happens is often more critical than merely knowing 'what' happens.
In this guide, we primarily explore the three reasons that lead to the formation of the triple bottom pattern.
(1) Market indecision
Imagine the market as a fickle individual whose decision-making process is hesitant, similar to that friend who can never decide where to go for dinner or what movie to watch. Thus, the triple bottom pattern emerges, stemming from the instability caused by the market's indecision, as shown in the figure below.
Just like the market seems to say: I can't decide which path to take, have you noticed how the price range continues to expand in the previous example? It is like a paused moment of confusion, yet it offers traders like us the opportunity to capitalize on the upcoming market decision. Therefore, we are essentially discussing that the triple bottom pattern is a direct product of market indecision.
(2) Development takes time
This pattern tends to develop gradually with its unique rhythm; however, this only makes it like a carefully slow-cooked dish, and the waiting process is worth it, just like watching a suspense movie where the savvy audience can foresee the climax. The market tests your patience, teasing you with its delicate fluctuations; for those willing to wait patiently and observe closely, the triple bottom pattern offers an opportunity that could yield substantial profits. Therefore, stay calm and let this pattern reveal its enticing trading opportunity at the right time. In fact, to further illustrate this principle, you can effectively utilize the triple bottom pattern in the following situations.
(3) You missed the double bottom pattern
If you missed the double bottom pattern, as shown in the figure below.
You need not toss and turn in regret, as the triple bottom pattern can now turn the tide, offering you another chance to participate in the market, as shown in the figure below.
This is like unexpectedly discovering a hidden treasure chest in despair, thinking all hope was lost; thus, this pattern offers an additional entry opportunity.
Now, I understand that trading double bottom patterns may seem more appealing, but the key lies in whether you can seize the opportunity. For cautious traders seeking more confirmation, closely monitoring the triple bottom pattern is worthwhile. It is a pattern that can bring redemption, excitement, and substantial profits, adding value to your trading charts. Now that you understand what a triple bottom pattern looks like and how it operates, I will explain when you should not trade this pattern. Remember that all trading patterns have their own strengths and limitations.
3. The biggest mistake when trading triple bottoms: avoid these traps
(1) Error 1: Trading in the middle of the triple bottom pattern
First, trading within a price range is like trying to wear a pair of overly tight jeans; discomfort is inevitable. Remember that the triple bottom pattern usually forms when the market is indecisive, akin to a child in a candy store facing many tempting choices and hesitating. Therefore, you should resist the impulse to frequently enter and exit trades during the pattern formation process; instead, patiently wait for the market to make a clear decision.
In summary, avoid trading during the middle phase of the pattern establishment, as shown in the figure below.
Focus on the value areas, the so-called support and resistance levels, as shown in the figure below.
2) Error 2: Blindly trading at highs and lows
What does this mean? Should we not only avoid trading the middle part of the triple bottom pattern, but also trading at highs and lows? You should know that the triple bottom pattern is known for its frequent false breakouts, as shown in the figure below.
This is due to the inherent characteristics of range markets, which expand and contract; the triple bottom may even evolve into a quadruple bottom, like a prankster lurking in the shadows, ready to jump out and give you a scare. Therefore, do not blindly chase the peaks and troughs like an ignorant squirrel; instead, you should wait for the market to confirm before trading, meaning you should patiently wait until the actual breakout occurs after the third bottom, as shown in the figure below.
And confirmation should occur at the closing price of the interval, serving as an effective confirmation of the third bottom formation, as shown in the figure below.
Therefore, reaching highs and lows does not constitute a sufficient reason to trade immediately; instead, you should remain vigilant and wait for the necessary additional confirmation signals.
(3) Error 3: Using double bottom patterns to judge market direction
Now, let’s clarify a point to correct a common misconception: although the triple bottom pattern may play a critical role in the market, it does not possess the oracle ability to predict market direction, meaning that even if you identify a triple bottom shape, the market is not obliged to break to higher levels; the following situations may also occur, as shown in the figure below.
This is akin to hoping to predict tomorrow's lottery numbers through a crystal ball, which is nearly impossible. Therefore, you should not solely rely on the triple bottom pattern to determine the subsequent market trend; rather, you should analyze other relevant factors comprehensively and regard the triple bottom pattern as one of the auxiliary tools, not the only decision-making indicator.
(4) Error 4: Over-reliance on textbook triple bottoms
When discussing the triple bottom pattern, do not overly adhere to the definitions in traditional textbooks, as shown in the figure below.
This pattern is like a chameleon, constantly changing its shape; each turn brings new surprises, indicating that there are multiple effective variants of the triple bottom, just as you have observed before, as shown in the figure below.
And this, as shown in the figure below.
Therefore, let go of your rigid expectations of the pattern and instead appreciate the beauty of its morphological diversity; the key lies in those 'sharp bottoms' you identify on the chart.
Now, you may be thinking: I know how to identify this pattern and what behaviors to avoid during trading; how should I trade? If this is your question, now is the time to showcase your trading skills, as I will reveal the three key market movements you should focus on when trading the triple bottom pattern.
4. The ideal strategy for successfully trading the triple bottom pattern.
(1) Ensure that the triple bottom is within the existing uptrend
By ensuring your trading actions align with the current market uptrend, as shown in the figure below.
You are enhancing your probability of trading success and synchronizing with the market’s rhythm, paying attention to this uptrend, just like an experienced dancer searching for the ideal partner, ready to gracefully spin and immerse in the unfolding of the triple bottom pattern.
(2) Look for false breakouts or accumulations
When you observe a false breakout at the third bottom, as shown in the figure below.
This is like noticing your dance partner pretending to be tired on the dance floor, but then suddenly revitalizing with their talent, signaling that the pattern is about to take off and ready to capture the market's attention, as shown in the following figure.
From another perspective, if you have encountered the following situations: missed the entry timing for the double bottom pattern or overlooked the false breakout trading opportunity of the triple bottom pattern, do not worry, as there are still opportunities waiting for you. This is because if you observe price accumulation at the highs, as shown in the figure below.
This is like witnessing the moment before an electrified elevator starts; this phenomenon indicates that the triple bottom pattern is preparing for a potentially energetic breakout, as shown in the figure below.
Therefore, please keep an eye on these cutting-edge market trends and be ready to showcase your trading skills on the market stage. At this stage, you have mastered all the necessary key elements to successfully execute trades with the triple bottom pattern, but as you well know, the effectiveness of these tools depends on how you apply them. If you have been trading similar double bottom patterns for a long time, then you are well-prepared. However, if you are looking for a concise guide on how to utilize the triple bottom pattern for market discovery, trading, and trade management, please continue reading the following content of this guide.
5. Mastering the triple bottom: a trading strategy that lets you dance in profits.
(1) Step 1: First, determine the uptrend within the daily timeframe
Think of it as discovering the ideal rhythm, laying the foundation for a captivating performance, exploring those continuously rising highs and lows that symbolize a strong uptrend, as shown in the figure below.
Once you confirm this uptrend, you proceed to the next stage, closely following the market's rhythm.
(2) Step 2: Identify potential triple bottoms within the 4-hour timeframe.
At this moment, please shift your focus to the 4-hour chart, where the potential triple bottom pattern will appear vividly. Compare this process to dance choreography, where each step carries a specific objective. Identify the triple bottom pattern, which is formed by connecting three different bottoms through the neckline, as shown in the figure below.
This is like observing a group of dancers synchronizing their steps, weaving a captivating pattern on the dance floor; once you identify the masterpiece of this triple bottom pattern, you should begin preparing for a precise trade entry.
(3) Step 3: Trade false breakouts at three points
This is like executing a stunning spinning move or quickly changing direction on the dance floor, making all viewers admire; when the market briefly dips below the third bottom and then quickly rebounds, as shown in the figure below.
This is a sign that the pattern is about to take off, ready to become the market's focus. Therefore, like an experienced dancer, follow this momentum into trading, showcasing your trading skills and seizing the market's opportunities, as shown in the figure below.
Seizing the opportunity is crucial; patiently wait for that false breakout to occur and take swift action.
(4) Step 4: Accumulate at the neckline with reduced scale
At this moment, it is time to enhance your trading performance. You may wonder: how to achieve that? By gradually reducing the trading scale near the neckline, as shown in the figure below.
Think of it as a magnificent upgrade in a dance choreography, where energy surges to new heights; when the price decisively crosses the neckline, it signals that the triple bottom shape is about to unleash its full market potential. In this situation, how should you act? Simply put, you should increase your position size, expanding on the basis of your initial trade, thereby maximizing your profit potential, as shown in the figure below.
Think of it as a magnificent upgrade in a dance choreography, where energy surges to new heights; when the price decisively crosses the neckline, it signals that the triple bottom shape is about to unleash its full market potential. In this situation, how should you act? Simply put, you should increase your position size, expanding on the basis of your initial trade, thereby maximizing your profit potential, as shown in the figure below.
This is akin to the crescendo in a musical piece; the key is that this breakout provides investors with an opportunity to ride the wave of victory.
(5) Step 5: Use the 20-period moving average for trailing stop
Now that you have ventured into this field, how should you manage it? In this situation, I recommend using the 20-period moving average as a trailing stop tool, as shown in the figure below.
This indicator is like a trustworthy dance partner, ensuring your safety on the trading stage. As the price moves favorably, use this dynamic indicator to adjust your stop-loss position, so your profits are protected, as shown in the figure below.
Here are some other key points you should be aware of: you always have the right to choose between Stage 3 and Stage 4. For traders who tend to take on higher risks, you can choose to trade between Stage 3 and Stage 4; if you are a more conservative trader, you can choose to enter the market when the price breaks the neckline (i.e., Stage 4); if your trading style falls somewhere in between, you might consider taking action in Stage 3 without reducing your position, but rather expanding horizontally in Stage 4.
Therefore, put on your trading 'battle boots', practice these steps, and let this concise triple bottom strategy be your ticket to trading success.
6. Conclusion
Here are the core points of this guide:
(1) The triple bottom pattern provides traders who missed the double bottom opportunity with a second chance to enter.
(2) It consists of a neckline and three different bottoms, usually forming during periods of market indecision and requiring time to develop.
(3) When trading triple bottoms, common mistakes should be avoided, such as trading within the price range and over-relying on textbook patterns.
(4) The best trading method is to align with the existing uptrend in the market and focus on false breakouts at lows or price accumulations at highs.
(5) A simple trading strategy includes identifying the uptrend, discovering the triple bottom pattern, trading false breakouts, adjusting position sizes during breakouts, and using the 50-period moving average as a trailing stop tool.
Simple and practical tips for trading coins that allow you to profit steadily.
1. Invest in batches: Suppose you have 10,000 yuan, divide it into five parts, using only 2000 yuan for each trade.
2. Test investments: Try buying a coin with 2000 yuan.
3. Add to your position after a decline: If the coin price falls by 10%, invest another 2000 yuan.
4. Take profit when it rises: If the coin price rises by 10%, sell part of it in time to lock in profits.
5. Repeat cycles: continuously buying and selling until funds run out or coins are sold out.
Strategy advantages: The benefit of this strategy is that even if the coin price falls, you can respond calmly. By investing in batches, you avoid the risk of a one-time investment. Even if the coin price drops by half, you are only gradually adding to your position. Each time you sell, you can lock in a 10% profit. For example, if you have 100,000 yuan, each time you invest 20,000 yuan, you can earn 2,000 yuan each time.
I am A Xin, focusing solely on real trading; the team still has spots available.
