The MACD strategy of the demi-god in the cryptocurrency circle has become extremely popular online. Any video related to the demi-god strategy has high view counts on video platforms. The reason is that the demi-god's MACD divergence strategy is simple and easy to understand, with clear entry and exit points, and often achieves large swings. This time, I will also ride the wave of demi-god's popularity and see how much I can earn in real trading using demi-god's strategy!

First, let’s take a look at the technical indicators to be used:

Please set your Binance chart to TradingView chart, then search for indicators

Name: MACD

Input: Fast line 13, Slow line 34

Name: ATR

Input: 13

Next is the body of the strategy

Long Position

Find two or three peaks below the zero line that differ significantly and continuously rise in the MACD histogram

The low points of the K-line corresponding to MACD continue to decrease

The K-line corresponding to the MACD histogram's volume reduction is the key K-line, and enter after its closing.

Below is the long position that the strategy captured recently

Short Position

Find two or three peaks above the zero line that differ significantly and continuously rise and fall in the MACD histogram

The low points of the K-line corresponding to MACD continue to rise

The K-line corresponding to the MACD histogram's volume reduction is the key K-line, and enter after its closing.

Below is the short position that the strategy captured recently

Risk-reward ratio: 1:1-1:2-1:3, please judge for yourself

Stop Loss:

Long Position: Entry K-line low point + ATR value is the stop loss

Short Position: Entry K-line high point + ATR value is the stop loss

For strategies that are still unclear, you can search online by yourself. The demi-god has made the strategy public.

We can see that in the recent market, the strategy perfectly captured the turning point of the trend. How will it perform in long-term practice? We will wait and see. Whenever I have time, I will look for the buy and sell points of the strategy and then verify its feasibility in real trading.

Additionally, based on my own experience, I will summarize the places where this strategy is prone to failure and the most effective possible market conditions. The strategy itself is to capture reversal turning points. Therefore, in a strong one-sided market, if the strategy generates an entry signal that is contrary to the trend, it is very likely to fail. Therefore, we try to use it in markets with weaker momentum. The characteristics of strong trends are continuous large trend K-lines, rebound K-lines that are generally small and lack continuity, while weak trends are just the opposite, with long and short K-lines being similar in number and size, and the trends are very overlapping.

It can be seen that the long position was actually opened under low win rate conditions, but the key K-line for the long position is a large engulfing K-line, which increases its win rate. Even so, the subsequent trend also experienced significant ups and downs before reaching the two times take profit level. From a structural perspective, the line formed a small double bottom that was raised, followed by a large double bottom that was also raised, and only then did the market truly reverse.

The short position follows the textbook, where the market forms a bearish wedge flag, and a key K-line appears at the end of the convergence. At this point, enter in accordance with the larger context. Even if there is a small strong upward move to the left of the key K-line, the pressure from the larger context remains strong. After experiencing a narrow consolidation, the market begins to decline. Meanwhile, we can see that it later forms a divergence and a key K-line, which may be difficult to distinguish. However, it’s okay; entering with the first key K-line is already enough to make a profit.

Therefore, if we adopt a trend-following trading mindset of following the strong and countering the weak, we can greatly increase the win rate of the strategy.

This strategy conforms to price action and corresponds to weaker cycles in the market cycle. The tradable market is limited but has a high win rate. I will operate in real trading later. Please give your attention, one-click triple link! #MACD #BTC☀ $BTC