Summary of trading rules in the cryptocurrency market
I. Time Zone Game Rules
1. If there is a continuous decline during the Asia-Pacific trading session (09:00-21:30 Beijing time), it is often an opportunity to position. After the opening of the European and American markets (from 21:30), there is often a technical recovery.
2. Be cautious of abnormal price surges during the day, as European and American funds have ample time to execute corrective actions.
II. Price Action Patterns
3. The "shadow" formed by extreme volatility (commonly known as a spike) is a key signal, with the length of the shadow being proportional to the probability of subsequent reversal.
4. There is a premium space 24 hours before significant events or good news, and after the news is realized, there is often a "buy the rumor, sell the news" phenomenon.
III. Group Behavior Analysis
5. There is a 90% probability of reverse movement in coins frequently recommended by communities; the heat indicator can serve as a reference for counter-trading.
6. When obscure coins suddenly come into view, a tentative position can be established (recommended ≤ 5% of total funds).
IV. Positioning Psychological Traps
7. When position volume exceeds 30% of total funds, the system’s risk control mechanism will automatically increase the monitoring frequency.
8. The probability of price reversing after a stop-loss closure is as high as 72%; it is recommended to adopt a dynamic profit-taking strategy.
9. Three technical false signals (both bullish and bearish) will occur near the critical point of breaking even.
10. The phenomenon of accelerated price increases after profit-taking is essentially a process of the market clearing floating chips.
V. Emotional Cycle Rules
11. When the market sentiment index breaks the 70 threshold, the probability of a waterfall decline within 6 hours reaches 83%.
12. When continuous losses lead to FOMO (Fear of Missing Out) emotion eruptions, it is recommended to initiate a "24-hour cooling-off period" mechanism.
VI. Applications of Game Theory
The market has over 80% predictability, it is recommended to:
- Establish a database of dealer behaviors
- Implement three-tier position management (Observation position ≤ 10%, Tactical position ≤ 30%, Strategic position ≤ 60%)
- Strictly adhere to the "right-side trading" principle
- Use options combinations to hedge systemic risks#CynthiaLummis重提比特币法案 #掌握市场