There is a method of cryptocurrency trading that is known as the "dumbest but most effective" method, which is said to be able to achieve almost 100% profit.
The method is actually very simple, with only four steps: selecting coins, buying, position management, and selling. He has figured out every detail clearly, and now I will share this method with you.
Step 1: Choose a currency
Open the daily chart and focus only on the MACD indicator at the daily level. Choose those currencies with MACD golden cross, preferably above the zero axis, as this signal usually works best.
Why choose MACD Golden Cross?
MACD golden cross indicates that the short-term average crosses the long-term average, indicating that the price may enter an upward trend. The golden cross above the zero axis is stronger, which means that the market is in a bullish market as a whole.
Step 2: Set the buying basis
Still at the daily level, we only need to focus on one moving average, the daily moving average.
Buying strategy: When the currency price breaks through and stabilizes above the daily moving average, consider buying.
Selling strategy: If the currency price falls below the daily moving average, sell the position.
This method is simple and intuitive, using the moving average as a tool for trend judgment to help you follow the trend.
Step 3: Position Management
After buying, if the currency price breaks through the daily average and the trading volume is also above the daily average, you can choose to buy all positions.
Pay attention to risk control: Although full-position operation may bring higher returns, it also brings greater risks. Make sure the investment amount is within your tolerance range and do not increase your position blindly.
Step 4: Selling strategy
There are three key details here:
1. When the swing gain exceeds 40%, sell one-third of the total position to lock in some profits.
2. When the band increase exceeds 80%, sell another one-third to further reduce the risk.
3. When the price falls below the daily moving average, liquidate all positions to protect the remaining profits and principal.
Important Tips
Decisive stop loss: If the price of the currency unexpectedly falls below the daily average the day after you buy it, you must decisively sell all of it and don't be lucky. Although the probability of the currency price falling below the daily average is small according to the above coin selection method, risk awareness is indispensable.
Re-entry: After selling, if the currency price stands above the daily average again, you can buy it again. Don’t miss the subsequent market because of a failure.
Other trading principles
1. Intervene when strong coins pull back: As long as a strong coin falls from a high level for 9 consecutive days, it may be a good time to intervene.
2. Reduce positions when prices continue to rise: If any currency rises for two consecutive days, you can consider reducing your positions in a timely manner to prevent the risk of a pullback.
3. Observe the opportunity for a surge: For currencies that have increased by more than 7%, there may still be opportunities for a surge the next day. You can continue to wait and see, but pay close attention to market changes.
4. Wait for the pullback to end: For strong bull coins, be sure to wait until the pullback is over before entering the market to avoid being trapped at high levels.
5. Pay attention to volatility: If a currency has flat fluctuations for three consecutive days, you can observe it for another three days. If there is no obvious change, consider changing the currency.
6. Exit in time: If the cost price of the previous day is not recovered the next day, you should exit in time to avoid greater losses.
7. Understand the selling point: There is a saying in the industry that "if there are three on the list of rising prices, there must be five, and if there are five, there must be seven." For currencies that have risen for two consecutive days, you can buy at a low point; the fifth day is usually a good time to sell.
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