1. Prudently choose cryptocurrencies: In the face of complex and ever-changing cryptocurrencies, always maintain clarity. For those with unclear situations and high risks, exercise caution and avoid blindly following the trend.
2. Diversify investments: Even if you are very optimistic about a cryptocurrency, do not invest all your funds. The market is unpredictable, and investing in batches can reduce risk.
3. Timely stop-loss: If you mistakenly purchase a cryptocurrency that is in a downtrend, sell it immediately to prevent further losses.
4. Be flexible: If the cryptocurrency you hold is not losing money but is showing a weakening trend, consider exiting promptly to maintain liquidity.
5. Focus on strong cryptocurrencies: Prioritize cryptocurrencies that are in an uptrend to avoid wasting time on weak ones.
6. Avoid overtrading: Short-term trading can bring excitement, but in the long run, frequent operations often lead to significant losses. Focusing on a few potential cryptocurrencies is more beneficial for long-term gains.
7. Price is not the only standard: A cryptocurrency being cheap or having a large drop is not a reason to buy. Similarly, a high price or significant rise is not a basis for selling. The key lies in its underlying value and market prospects.
Investment Advice:
1. Select quality cryptocurrencies: Prioritize strong cryptocurrencies with potential, while also paying attention to market hotspots to achieve dual benefits of investment and speculation.
2. Improve adaptability: For traders, the ability to flexibly respond to market changes is crucial.
3. Clarify investment cycles: Start with a large cycle for qualitative analysis, combining weekly and monthly lines for coin selection and identification, and use daily lines for real-time tracking.
4. Stick to investment principles: Establish and adhere to your own investment rules, such as using Bollinger Bands and other technical indicators to assist in decision-making.
5. Accumulate experience: By repeatedly applying successful experiences, making profits becomes a habit. Continuous, stable small profits are often more important than occasional large profits.
Single chip peak strong support and bottom-fishing opportunities:
After a significant price increase, we can see that the main chip peak emerges when the price hits the top. The scale of the chip peak at a high price is substantial, signaling the market makers' selling action. If the price breaks below the chip peak, the downward price trend will inevitably accelerate; this is a natural price trend. So when the price breaks below the chip peak, when should we choose to bottom-fish during the downward trend? We can choose to buy when the price drops to the low chip peak, so even if it is a short-term profit opportunity, it is still very considerable.
Because after a significant price drop, the corresponding rebound space will be quite considerable. It is even possible for the price to rise by more than 50% from the low.
In fact, achieving a rebound of over 50% during a downward trend is already a relatively good profit opportunity. In practice, even when the price has increased significantly, the situation of market makers completely unloading is not always present. Especially when there are many market makers, when the price peaks and retreats, they may still hold their positions. So after the price retreats from a high position, we will find that the price is not simply in a downward trend.
When the price drops to a certain extent, a rebound will occur. After the price peaks, the holding cost price of the market makers who still hold their positions is a very important rebound level, and it is also the buy point where we can obtain short-term profits. From the perspective of short-term trading, we can buy the cryptocurrency when the price drops to the price corresponding to the market makers' chip peak to enhance our profit space.
From the moment the price peaks, we can confirm the price area corresponding to the low chip peak. During the peak period, if the low chips held by the market makers still exist, then we believe the probability of them completely unloading is low. At this point, after the price peaks and retreats, a rebound trend can appear at the support level corresponding to the low chip peak. We can buy the cryptocurrency at the price corresponding to the low chip area and wait to gain considerable profits during the rebound. Practical experience shows that the market makers' operation periods are very long. Even when the price peaks and retreats, it is impossible to completely force the market makers out. In other words, the market makers' positions have a strong continuity. If we confirm that the low chip peak significantly exists during the price peak period, then after the price drops to the market makers' holding cost zone, their motivation to buy will definitely be strong. To defend the cost price, during the market makers' active buying process, the price naturally rebounds during the decline, which is the key to our profits during the downward trend.
Pattern Characteristics:
1. Cryptocurrency price peaks at a high position: Once we confirm that the cryptocurrency price has peaked, the chip peak at the high price must be broken. At this point, confirming the pattern of the chip peak at the high price is very important. If we see that the chip peak in the low area still exists, even if it is not large, we still regard it as the market makers' holding. After the price peaks and retreats, a more obvious rebound trend will appear in the low area.
2. The RSI indicator completes a double bottom pattern: When we confirm that the cryptocurrency price hits the bottom at the low chip peak, we can use the RSI indicator to judge. If the RSI indicator completes a double bottom pattern, then the probability of the cryptocurrency price hitting the bottom at the low chip peak will be high. When the RSI indicator stabilizes with a double bottom reversal, it is also the moment when the cryptocurrency price begins to rebound. By confirming the buy point during the price rebound, we can naturally obtain good returns.
3. The cryptocurrency price hits the bottom at the low chip peak: In the seemingly bottomless downward trend, when the cryptocurrency price drops to the price area corresponding to the low chip peak, a rebound will occur. If we accurately determine the price at which the cryptocurrency hits the bottom, it will provide support for the lower limit of the low area chip peak. Even if the price drops significantly and the downward trend is very pronounced, it will not easily break below the lower limit of the low chip peak.
Because after the market makers' price peaks and retreats, the low-position market makers are also waiting for the price to fall back to their holding cost price. Once this situation occurs, the market makers will re-enter, naturally driving the price into a rebound state. At that time, obtaining short-term profits will be much easier.
1. Cryptocurrency Price Peaks at High Position G:
After a significant increase, we can confirm the high price selling point at position G through RSI indicator divergence. After the price peaks at position G, it goes into a steep decline after a brief adjustment. The price drops significantly, falling from a high of 30 to just above 12, in only two months. Before the price drops, we should first pay attention to the small-scale chip peak corresponding to the low position P. Because the chip peak corresponding to position P is the market makers' holding cost zone and also a rare support price. It is difficult for this cryptocurrency to break below the support level at position P, and we believe that the price dropping to the corresponding level is a relatively good short-term buy point.
2. The RSI indicator completes a double bottom pattern at positions A and B:
During the decline of this cryptocurrency, the RSI indicator completed the corresponding lows at A and B, and the corresponding buy point appeared during the indicator's rebound phase. Throughout the process of the RSI indicator forming a double bottom, we can observe that the cryptocurrency price has dropped to around 12, corresponding to the peak of chips at P. The support at the peak of chips at position P is strong, providing us with an opportunity for short-term profit.
3. The cryptocurrency price hits a bottom at the price corresponding to the low position of the chip peak P:
After the price at position P's chip peak hits the bottom, we can see that the price rebounds efficiently. In just two months, the price soared from 13 yuan to a high of 22 yuan, with an increase of 69%. Even in a downward trend, such a strong rebound is hard to come by, and the profit potential is already quite high. Although the price has entered a downward trend, when the price drops significantly, the position where the market makers hold their positions still shows a rebound trend. The rebound speed is very fast, and the increase is already quite remarkable. Even with the volume shrinking as shown at position D in the chart, the rebound still formed. It seems that retail investors did not significantly participate during the market makers' price increase.
The price rebound is more a result of reduced selling pressure and the market makers actively controlling the market. After the price drops to the market makers' low-cost holding zone, their willingness to maintain the price increases, allowing us to profit from short-term buying.
The ten realms of cryptocurrency trading, which realm are you in?
Beginner's Monster Fighting Chapter:
1. Passionate Beginner Village (Recharge Faith)
Symptoms: Holding 1000 USDT feels like I can buy the entire crypto world, staying up all night watching the market like binge-watching a series.
Classic Operation: "This coin has only increased 10 times? Quick, All in!"
Breakthrough Suggestion: First buy 200 USDT worth of milk tea, keep the remaining 800 USDT for tuition fees.
2. Market Watching Addiction Phase (Itchy Hands Syndrome)
Daily Routine: Refresh the account 20 times an hour, K-line red and green flashing like disco lights.
Illusion: "If I don't act, I'll miss out on a billion."
Antidote: Set up automatic trading alerts, allowing only 3 trades a day.
Growth of the Leek Chapter:
3. Anti-Fraud Awakening Phase (Questioning Life)
Awakening Moment: Realizing that when big influencers shout buy, the coin price must drop, and the project teams always run away before good news is released.
Classic Quote: "Value investing is just a scam for fools, right?"
Survival Rule: Good news landing is bad news, learn to sell during the hype.
4. Indicator Alchemy Phase (Obsessed with Indicators)
Daily Routine: Watching 5 screens at the same time, MACD/KDJ/Bollinger bands tangled into a ball of yarn.
Illusion: "This golden cross is absolutely secure!"
Truth: Changing parameters repeatedly is worse than just flipping a coin.
5. Mystical Trading Phase (Quantum Fluctuation)
Mysterious Ritual: Checking horoscope and fortune before opening, choosing coins with auspicious numbers.
Classic Operation: "When the coin price drops to my birthday number, I will bottom fish."
Advanced: Inventing the "Hot Pot Base Material Index" to predict market trends.
Path to Enlightenment Chapter:
6. System Building Phase (Forming Strategies)
Transformation Sign: Starting to write trading journals, stop-losses become as natural as breathing.
Core Philosophy: "Better to miss out than to make a mistake."
Typical Progress: Not blowing up for three consecutive months.
7. Rhythm Master Phase (Carving the Ox)
New Perspective: Watching K-lines feels like looking at an ECG, hearing news is like hearing the whispers of the world.
Skill: Staying calm and withdrawing funds during FOMO emotions.
Moment of Enlightenment: "So the market makers are also being harvested by bigger trends."
8. No Tricks Beat Tricks (Street Sweeper Mode)
Daily Routine: After setting take-profits and stop-losses, I go take the dog for a walk; ups and downs are just a numbers game.
Ultimate Weapon: Using regular investments to combat volatility, using arbitrage to harvest emotions.
Realm Verification: Surprisingly earning enough for groceries in a bear market.
Return to Simplicity Chapter:
9. Outsider in the Crypto World (Dimensional Reduction Attack)
New Identity: Treating exchanges like ATMs, using mining profits to pay for utilities.
Investment Philosophy: "Price fluctuations are just part of the process; cashing out is the art."
Hidden Skill: Predicting market turning points through Twitter sentiment indices.
10. Awakened Beings (Kitchen Enlightenment)
Ultimate Realization: Trading crypto is like cooking — when the time is right, it naturally smells good.
Life State: When it rises, add a chicken leg; when it drops, cut back on takeout.
Great Wisdom: "Account balance is not as important as account health."
Guide to Breaking Realms (Three-Dimensional Upgrade Method)
1. Cognitive Leap
From "Predicting Prices" to "Managing Risks."
From "Chasing Hundredfold Coins" to "Finding Certain Arbitrage."
2. Operational Evolution
Changing "All-in Operations" to "Three-Layer Position Pyramid."
Using "Grid Harvesting" instead of "Chasing Highs and Selling Lows."
3. Mindset Restructuring
Cultivating the blunt awareness of "Looking at percentages instead of amounts during ups and downs."
Fostering the counterintuitive thinking of "Missing a huge rise is happier than randomly buying and losing money."
These days I am preparing for the launch of a divine order!!!
Comment 8, get on board!!!
Impermanence brings impermanence brings impermanence!!!
Important things must be said three times!!!
