In the volatile world of cryptocurrency, there are those who lose everything in just a few days, but there are also those who survive and earn stable profits for many years. If I had to choose a method that is both simple and practical, the system based on 3 moving averages (MA) – 5 days, 30 days, and 60 days – is the "Guiding Star" that helps many traders weather the storms.
1. The Three MA Lines and Their Core Meaning
MA5 (5-day moving average): represents short-term strength, being the 'pioneer' that gives the earliest signals about the market's direction.
MA30 (30-day moving average): symbolizes the medium-term trend, playing the role of the 'helmsman' that helps determine the overall direction.
MA60 (60-day moving average): represents the long-term trend, acting as a stable 'anchor' that helps identify whether the market is in a rising or falling cycle.
When MA5 crosses above MA30 and MA60, that is a signal that capital is starting to enter – indicating that a new growth phase may be opening. Conversely, if MA5 crosses below MA30/MA60, it is a sign that capital is withdrawing, so immediately reduce positions or exit the market to preserve capital.
2. The Golden Rule of the Moving Average: 'Crossed Means Stand Still'
When the MA lines of 5, 30, and 60 constantly intertwine, the market is in a sideways state. During this period, buy and sell signals are constantly distorted, entering positions is no different from gambling with a 50/50 chance.
Therefore, the important rule to remember:
"When the MA lines are tangled, absolutely do not take action."
Only when all three MA lines agree, either trending up or trending down, is when the market truly has a clear trend – at this point entering a position is safe and has a high winning rate.
3. How to Act in Each Phase
When MA5 surpasses MA30/MA60 → Open a buy position (long), prioritize holding leading coins in the trend.
When MA5 falls below MA30/MA60 → Cut down positions or exit completely. Do not regret the opportunity, as capital preservation is the top priority.
When MA60 changes direction (from up to down) → This is the signal that the trend is ending. Be decisive in exiting the market.
A professional trader is like a sword master in martial arts: quick to act, swift to draw the sword, and absolutely does not hesitate.
4. Discipline – The Key to Survival
The MA system is very simple, but maintaining discipline is the hardest part. The market can cause emotions to fluctuate: a good news, a sudden pump, or a deep correction... But if you do not follow the signals from the MA, all rules are meaningless.
There are people who have received MA5 break signals while at a wedding party, and they immediately opened their phones to exit their positions. This is not extremism, but rather a respect for the system – the only thing that helps one survive in this trap-filled market.
5. Conclusion
In the crypto world, where thousands of technical indicators are continuously emerging, simplicity can sometimes be the greatest strength.
The three moving averages of 5 – 30 – 60 days are not only tools for observing trends but also a survival compass for those who want to survive and develop sustainably.
When the market is chaotic, look back at the 3 MA lines. When emotions fluctuate, remember: 'Crossed means stand still, aligned means act.'
As long as you are consistent with that principle, profits will come as a natural consequence of discipline and time.
