Simplicity is Key: 5 Golden Rules of the Crypto World to Help You Achieve Steady Profits

Rule One: Accumulation Market Identification Method

When a "rapid rise and slow fall" pattern appears

Typical Characteristics: Daily increase exceeds 8%, with a pullback of only 2-3%/day

Data Validation: Continuous increase in net outflow from exchanges

Operational Strategy: Gradually build positions when pulling back to the EMA20 moving average

Case Study: In October 2023, SOL rapidly rose from 20 to 25, then only pulled back to 23.5 over the next 5 days, followed by a major upward wave

Rule Two: Distribution Market Warning Signal

The dangerous signal of "rapid fall and slow rise"

Daily decline exceeds 5%, rebound strength <2%

Significant increase in large transfers to exchange addresses

Continuous decrease in futures open interest

Response Plan: Immediately reduce positions by 30% when rebounding to MA5

Rule Three: Insights on Volume at the Top

Top Trading Dual Rules:

1. High Volume Top (Volume and Price Rising Together)

Wait for a second peak opportunity

Stop loss at 5% below the previous high

2. Low Volume Top (Volume and Price Divergence)

Immediately close 50% of positions

Clear out on MACD death cross

Rule Four: Secrets of Volume at the Bottom

Key Points for Building Positions at the Bottom:

Beware of single-day high volume: it may be a "fishing line"

Confirm sustained high volume: 3-day volume exceeds 20-day average volume

Best Buy Point: High volume breakout of the downtrend line + RSI bottom divergence

Rule Five: The Game of Emotion and Consensus

Emotional Cycle Stages:

1. Despair Phase: Trading volume shrinks to a yearly low

2. Hope Phase: Continuous small bullish candlesticks with increasing volume

3. Frenzy Phase: Daily turnover rate exceeds 30%

4. Panic Phase: Waterfall decline accompanied by massive volumes

Practical Toolbox

1. Volume-Price Relationship Reference Table:

Price Action Volume Market Implication

Rapid Rise Expansion Main force lifting

Slow Decline Contraction Washing and accumulating

2. Emotional Indicator Combination:

Fear and Greed Index

Social Media Sentiment Index

Long/Short Position Ratio

In this market, the simplest rules are often the most effective. My success does not rely on complex technical indicators, but on consistently executing these 5 simple rules.

Current Application: BTC recently exhibits the "rapid rise and slow fall" characteristic, with continuous decrease in exchange inventory, consistent with Rule One's accumulation features. Suggest paying attention to the breakthrough of key resistance levels! SOL BTC #Strategy增持比特币 #策略交易