Cryptocurrency Market Trend Trading: The Way to Counterattack

Having wandered in the cryptocurrency market for a long time, I am well aware that trading strategies are a matter of life and death; choosing incorrectly can lead to total loss. In the past, I often went against the trend—shorting when the market was soaring and going long during a crash. Looking back now, that was truly walking on the edge of a knife. Going against the trend is like walking a tightrope at a great height, fraught with anxiety; once the market reverses, the losses can be severe and unforgettable.

After suffering enough setbacks, I turned to trend trading. During these past few days of market drops and rebounds, I seized the opportunity to buy the dip and went long, and the difference was apparent. Opening positions in line with the trend felt smooth, and I was calm while holding positions. When the market ended, profits were secured, and I felt stable and at ease. Here, I share my insights on trend trading, hoping to lend a helping hand to fellow crypto enthusiasts.

Key Steps to Trend Trading:

First, select the right coins. With a plethora of cryptocurrencies to follow daily, it’s crucial to pick those with strong potential and active trading to add to your watchlist. Develop a habit of regularly reviewing them, comparing their performances to the market trends. Over time, you will hone your ability to identify strengths and weaknesses at a glance. In the future, when going long or short, you will be able to quickly lock onto targets.

Second, gauge the overall market. When the market is rising, don’t let excitement cloud your judgment; calmly observe which among ETH or BTC is leading the charge. They set the market direction, and you should go long accordingly. During a downturn, keep a close eye on the coins that are leading the decline, as they provide clues for shorting. The overall market trend governs everything, so it’s crucial to stay vigilant.

Third, interpret the rhythm. Use daily and 4-hour candlestick charts to analyze the market phases like a detective. This requires long-term observation to develop a “market sense.” Once you have it, you can glance at the candlestick charts and know the timing for buying and selling.

Fourth, target altcoins. When the market strengthens and mainstream coins have limited gains, decisively go long on altcoins that outperform the market. Use a small amount of capital with 10x leverage to take advantage of their high volatility and earn substantial profits; when the market weakens, short the lesser-known coins that drop even more dramatically.

Fifth, be flexible with closing positions. The cryptocurrency market changes rapidly; setting stop-loss orders is essential. If losses reach a certain level, exit decisively; when encountering resistance or support levels, it’s wise to secure profits or reverse positions. If you have made significant profits on paper, consider taking half off first to maintain a steady mindset. Before closing any position, reassess the overall market. If the momentum hasn’t changed and there are no explosive trades, you may continue holding.

The road in the cryptocurrency market is rugged, and following the trend is the way to go. While these methods are not infallible, they can illuminate the path for those who feel lost. I wish for you to achieve profits soon!