Short-term trading is essentially a probability game, focusing on 'understanding the flow of funds + controlling human weaknesses'
Three 'foolproof indicators' that beginners can understand
👉1. Moving Average: The 'Moving Average Line' of price
When the daily moving average crosses above the 10-day moving average: short-term becomes strong, buy on the first pullback to the 10-day moving average (for example, dropping from 100 to 95, with the 10-day moving average at 95).
When the daily moving average crosses below the 30-day moving average (the short-term line crosses below the long-term line): short-term becomes weak, sell quickly on the rebound to the 30-day moving average (for example, rising from 90 to 95, with the 30-day moving average at 95).
👉2. RSI: Determines whether it is 'overbought' or 'oversold'
RSI exceeds 70 (value above 70): bought too aggressively, overbought, price may fall, do not chase the price higher, prepare to sell.
RSI below 30 (value below 30): sold too aggressively, oversold, price may rebound, try to buy on a small scale (suitable only for major coins, small coins are prone to zero).
👉3. Bollinger Bands: The 'upper and lower limits' of price
Hitting the upper band (price rises to the upper side of the Bollinger Bands): heavy pressure, may fall, sell!
Hitting the lower band (price falls to the lower side of the Bollinger Bands): has support, may rise, buy!
👉Survival Rules:
Don’t let the principal be completely lost, don’t hold too heavy a position.
Set stop-loss and take-profit levels in advance, stop-loss.
Don’t act emotionally.
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