As the old saying goes, 'No one gets rich without unexpected wealth, and a horse does not grow fat without grazing at night.' I believe many people's initial intention to enter the crypto world is to make a big profit and then reach the pinnacle of life. However, due to a lack of correct methods, they ended up with the opposite result, losing both their capital and their efforts. Therefore, many people began their learning journey, such as buying books, researching materials, or seeking guidance from experienced individuals, etc.

What kind of people in the crypto world can truly master Bitcoin? There are only two kinds of people: those with vision and those with insight.

(1) Visionary people can grasp the overall direction of the future, while insightful individuals can seize the current significant opportunities. In fact, it can be very responsible

I can only tell everyone: you can only rely on yourself to continue making mistakes and losing money, then take various detours, and feel your way across the river.

(2) There are actually many ways to make money in the crypto world, some of which you may not agree with, but there are indeed people who can make money. You just haven't seen it.

His growth is exactly the same as yours; if you don't lay a solid foundation in the early years, you won't usher in the subsequent explosive growth.

Any success is by no means accidental.

(3) If you want to achieve stable profits, you must go through a bottleneck period of several years: six months to learn techniques, one year to practice execution, and one and a half years to train your mindset.

In terms of attitude, the most important thing is to minimize losses during the bottleneck period. If you are willing to spend time, energy, and summarize, along with a good mentor,

With companionship, the life in the crypto world becomes much simpler.

Thinking back on my years in the crypto world, going from an ordinary small investor to a professional trader who supports my family through trading, it is inseparable from strictly adhering to market discipline. Today, I summarize 10 'trading rules,' each word is precious.

If you want to survive in the market for a long time, it is advisable to save this article, think about it repeatedly, and understand these 10 rules of trading to easily earn millions annually.



These people have all their operations divided into going long and going short. When they hold coins, their thoughts are controlled by going long, and conversely, they are controlled by going short.

Market emotions accumulate and are guided in this way. If you cannot escape this state, you will never become a true market participant.

These are my heartfelt words from years of trading cryptocurrencies, and each one is useful. But the hardest part is achieving unity of knowledge and action. I hope everyone can remember these iron rules and ride the waves in the crypto world together!

Killer technique! Please pay attention to these 8 price action chart patterns; the opportunities to double your profits are among them.

Price action chart patterns can be said to be a major part of modern traders' toolkit. Today, I will mainly introduce 8 types of price action chart patterns that have significantly impacted my trading.

Next, I will take you to understand 'BOSS', 'BEAR', and more other price action chart patterns.

Price Action Pattern #1: Bullish Engulfing Strong Support (BOSS)

This refers to the bullish engulfing candlestick pattern that appears at a strong support level. The most important thing is not the exact candlestick chart but the position where it appears. Ideally, it should be right at the support level or slightly below it.

As the name suggests, the BOSS model can be considered one of the best price action models. The above image is one of the best charts depicting this model from a book on price action.

From the above figure, we can see that after the BOSS price action chart pattern formed, the price experienced a significant increase.

There are many such cases; a recent one is the BOSS price action chart pattern for EUR/USD:


The above figure has a major demand area/support level. When the price tests it, it forms an inside bar and attracts a large number of market participants to enter. One of the reasons I call this pattern a strong support bullish engulfing is that any candlestick pattern can be a triggering factor.

Price Action Pattern #2: Bearish Engulfing Strong Resistance (BEAR)

This price action chart pattern means that the price needs to test strong resistance or supply zones.

The image above is also taken from (Price Action Trading Manual).

I find that the bearish engulfing price action pattern may be the best candlestick pattern for this type. However, in the long term, this type of chart pattern will continuously appear.

This is an example of a daily GBP/USD chart from 2018:

From the above figure, we can see that this double candlestick bearish engulfing pattern has a very strong trend reversal effect. The engulfing pattern can consist of multiple candlestick bodies. Importantly, the bearish candlestick (red) completely covers the previous bullish candlestick (green) body. This indicates that the bears are ready to push the price in the opposite direction for a long time.

The BEAR price action chart pattern can be considered one of the best bearish price action chart patterns in my trading career.

Price Action Pattern #3: Inside Bar in a Trend (IBWT)

The IBWT price action pattern is one of my favorite candlestick patterns for two main reasons:

1. High reliability

2. Provides a high risk-reward ratio

From a trading return perspective, this may be the highest price action chart pattern.

Let's see why I say this.


Looking at the figure above, this candlestick pattern has a high risk-reward ratio because the closing price of the red candlestick is very close to the low of the green candlestick.

This allows for setting stricter stop losses, thereby having a higher risk-reward ratio. In other words, this means you can risk less money for more profit.

The figure below is another example of an inside bar in the Daily DAX chart:

You can see from the above figure that the inside bar only allows you to use a very small stop loss to 'aim for' a larger return. The risk-reward ratio in the above figure is almost 1:12.

This means that if your entry point is 9502, with a stop loss at 9339, you are taking a risk of 163 points. However, if the profit target is 11349, then this trade has a potential return of 1847 points.

I have to say, this is a very nice trade, with a risk-reward ratio of up to 11.38.

Price Action Pattern #4: Pin Bar in the Supply Zone (SUP)

The SUP chart pattern is one of the most effective bearish continuation patterns. We need the following two conditions to confirm the emergence of this pattern:

1. Primary/Secondary supply zone/resistance level

2. Price rebound price action patterns

The above image is a 1-hour chart of gold from October 23, 2020. We can see that the pin bar in the chart encountered resistance at the significant level of $1912 and fell back.
Once the price rises to the pivot level, price rejection may occur, and then the price suddenly drops.


At this point, you need to enter the market decisively to seize these trading opportunities. As you can see, after the pin bar encounters resistance, the next candlestick will be a long bearish candlestick.
Price Action Pattern #5: Random Resistance Rejection (RRR)

The image above is a 1-hour chart of GBP/USD. It shows a price action chart pattern called RRR (Random Resistance Rejection).
It is called 'random' because it can occur at any point in time, as well as in significant 'event convergence zones.'
Similar to previous price action patterns, RRR appears across different time frame charts. The rule of thumb tells us: 'The higher the time frame, the more accurate the signals.'
In this case, we observe a resistance level turning into a support level, and a pin bar forms a rebound at that level. Coincidentally, the candlestick on the daily chart is an inside bar.
This is a very good example of high-probability trading. However, it is important to note not to confuse this pattern with a breakout.
Price Action Pattern #6: Demand Zone Candlestick (DZC)

The above figure is a price action chart pattern obtained from the hourly chart of EUR/USD, specifically the demand zone candlestick pattern.
To validate this price action pattern, we need to follow two important rules:
1. Secondary demand zone 2. Candlestick confirmation
This chart pattern is very similar to the Bullish Strong Support (BOSS). The only main difference is that it usually appears in secondary demand areas rather than primary demand areas. See the figure below:

Those who are familiar with me should know that I try to stay away from diagonal trend lines or channels in trading. Here, I am just showing you a classic example.
Once you identify a secondary demand zone, we can mark it on the chart and lurk near the price. When the price is 'trapped' in the demand zone, what we need to do is use price action for confirmation and then look for opportunities to enter trades.
This may be one of the most powerful trend continuation techniques, which can also be used to implement strict stop losses.
Price Action Pattern #7: Theory vs. Reality (TVR)

The chart patterns that cannot operate as expected or according to theory in reality. Many traders blindly follow converging triangle patterns, but in reality, they are not as precise as people imagine.
One of the advantages of converging triangles is that they are easy to spot. The problem with this trading setup is that it is so easily recognizable that many traders try to profit from it.
You should know that trading is a zero-sum game that does not allow such behavior. Traders who blindly chase high prices become the targets of harvesting.
One of the problems with TVR price action patterns is shown in the figure below:

When you spot this triangle pattern, most traders will expect the price to break upwards.
However, contrary to expectations, the price moves in the opposite direction.

The reason we did not see an upward breakout is that the price was not able to withstand the test of the resistance level and began to turn down.
Before a decline begins, pay attention to the inside bar.
Price Action Pattern #8: Theory vs. Reality 2 (TVR2)

Let's look at the last price action chart pattern. Of course, this does not mean that we have covered all price action patterns. These 8 price action patterns are just some common ones in our daily trading.
So, what can we expect from price action patterns?
We see that when the price fluctuates within a range, a breakout is expected. Traders can easily fall into this trap. The closer the price gets to the resistance level, the more eagerly they buy.
Let's illustrate it with a sketch:



Here are three situations in which novice traders wish to go long:
1. The price is slightly above the middle level of the range; I should go long, or I will miss the opportunity. 2. The price is just below the resistance level; I worry that if the price rises too quickly, I will miss the best entry opportunity. 3. The price has just broken above the resistance level; I don't want to miss this trading opportunity.
The above three situations are typical trading behaviors of retail traders. This is a trap that you should avoid as much as possible.
The closer you are to the resistance level, the higher your stop loss will be. Ironically, the chance of being stopped out is also greater.
If you can look at it from a different perspective, you can find a good trading opportunity.
Think this way: the closer you are to the resistance level or supply zone, the more you should go short.
Let's take the USD/CAD 4-hour chart as an example:


Seeing this situation, you might rush in to go long. However, the reality is as shown in the figure below:


How unfortunate! You went long instead of shorting...
Summary
In this article, we have listed 8 price action chart patterns. Each has its own advantages and disadvantages. However, what everyone really needs to consider is the potential return of each price chart and the risks involved.
These trading patterns tell us that traders can easily fall into market traps, so we must strictly adhere to trading rules. Trading may be the best way to test your discipline.
Remember not to rush into trading with overly high expectations. If you want to become a consistently profitable trader, this will require a lot of time, discipline, and dedication.
Finally, I wish you success in your trading!

There are many common situations where emotions lead to losses. The following three are the most common.

1. Internal fluctuations.

When a cryptocurrency experiences internal fluctuations, it is actually the main forces targeting retail investors. During the ups and downs, if retail investors buy heavily, the price is likely to end with a significant drop. Conversely, if retail investors, out of panic, sell heavily, the price is likely to rise after the fluctuations.

2. Chasing highs and cutting losses

Chasing highs and cutting losses is also the most common emotion. Behind chasing highs and cutting losses is the fear of missing out and the fear of being deeply trapped.

The emotion of chasing highs and cutting losses is similarly easy for the main forces to exploit. When many people chase highs, the main forces often find it easy to sell off. In the morning, they may induce a lot of buying, but in the afternoon, they can crash the price to show retail investors, leading them to lose more than 10% in a day. The main forces can just take advantage of this to wash out the positions, causing retail investors to panic and sell. Chasing highs and cutting losses should not be about the cryptocurrency price, but about the trend. Retail investors' half-understanding makes them the prey of capital.

3. Good and bad news.

Another point is that both bad and good news will be exploited by the main forces. Bad news can suppress cryptocurrency prices or be interpreted as bad news being exhausted, leading to a significant price increase. Similarly, good news can push prices up or can be used to raise prices for selling off.

Therefore, how to interpret good and bad news is determined by capital. And how capital operates is actually based on market reactions and retail investors' actions. Retail investors panic, and capital greedily buys; when retail investors become greedy, capital immediately escapes. Using emotions to harvest losses, capital indeed executes this to perfection, effortlessly.


Remember! Fighting against emotions is the only way for retail investors.

Exploring the world of cryptocurrency is like understanding the essence of life. Once you grasp the wisdom of life, the secrets of the crypto world will become clear. The way of simplicity lies in the integration of knowledge and action, allowing you to navigate smoothly and confidently!

Follow me to help you avoid obstacles and find shortcuts on your journey in the crypto world. I am Ah Gui, focused on delivering the most valuable insights and information in the crypto space.

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