Contracts are a disaster for most people, but a tool for a small number of people to get rich. If you want to do contracts, you should first understand the following.
1. Assuming the probability of a margin call is 0.1%, the total probability of a margin call for 1,000 transactions is 63%, and the probability of a margin call for 2,000 transactions is 87%. The probability of a margin call is only a theoretical assumption. In actual operations, since the probability of price trends is usually normally distributed, the probability of a margin call increases exponentially with the increase in leverage, which means that the probability of a margin call with 10x leverage is much greater than that with 5x leverage.
2. Assuming the fee for each transaction is 0.1% and the winning rate is 50%, after 1,000 transactions, the principal will most likely be reduced to zero.
3. Suppose you have 10,000 yuan, you made 50% the first time, and lost 50% the second time, you still have 7,500 yuan left. Suppose you lost 50% the first time, and made 50% the second time, you still have 7,500 yuan left. Suppose you lost 90% in a transaction, you need to make 900% profit to get back your investment.
As for the position splitting method and stop loss line, there is no essential difference between the two. Both reduce risks while also reducing returns.
4. 10% of retail investors in the spot market can make a profit, and 3% of retail investors in the contract market can make a profit.
There are roughly three types of people who make money from contracts:
First, it is to make money with small funds and rely on the winning rate. Strict discipline is required, and the money earned must be withdrawn immediately.
Second, you can make money by relying on the profit and loss ratio. If your winning rate is less than 50%, but you earn more than you lose, you will make a lot of money.
Third, it relies on rolling positions. For example, Tony made his fortune from 50,000 dollars to 10 million, his lunch with Dogecoin increased 400 times, there is also a female college student who made 10 million by shorting Luna, and Liang Xi made his fortune from 1,000 yuan to 10 million yuan, all of which were made by rolling positions.
I have played all three types, and I started from 8,000 to tens of millions. Let me share how I did it:
If you want to use cryptocurrency trading as a second source of income, want to get a piece of the cryptocurrency pie, and are willing to spend time growing and learning, then don't miss this article. Read it carefully, every point is the essence of the cryptocurrency world.
It can be said that no matter it is a bull market or a bear market, this [Iron Law of Trading that must be followed] can help you! Later, we will talk about the essential tool for Bitcoin trading - BOLL, which can judge whether it is a bull market or a bear market. If used well, it is easy to increase 30 times in a month!
Before every transaction, you must ask yourself three questions:
First, think about the reason why you place an order every time?
Second, do you often encounter the situation where your profitable orders turn into losses?
Third, do you often hold orders until your account is liquidated and you don’t know what to do? These three problems are inevitable for all traders. All coin friends have encountered them to some extent. Everyone has gone through this, especially novices, who are very blind. The essence is that they have not established a mature trading mindset and trading system.
What is a trading system? It is a self-methodology for trading, opening, closing, increasing, decreasing, taking profits and stopping losses, that is, a set of rules. The most direct benefit of having such a system is that all your orders have a basis to follow, which greatly reduces the chance of making mistakes and the amount of losses. Secondly, you don't need to watch the market in real time. When you strictly follow the system, you have a clear idea of your goals and losses, and you can be as stable as a rock no matter how the market fluctuates.
How to build your own trading system? The most important thing is to have a good mentality. The cryptocurrency market is a 24-hour trading market with ever-changing and huge fluctuations. You need to have a strong psychological quality when trading. A person's operating habits, psychological tolerance, strategy execution ability, and ability to overcome greed and fear, all have different ability indexes, which determine that each person's trading system is different.
I have concluded that an excellent system must have the following characteristics:
First, the frequency of opening orders should not be too high. There are too many people in the cryptocurrency circle who are eager to get rich. If they don't open an order for a day, they will feel that they will lose the big market they fantasize about. In fact, opening orders needs to be based on the market, not on time. Blindly opening orders when there is no market will only lead to losses. There are too many opportunities in the cryptocurrency circle, but most of them are not what you can catch. No one can take advantage of every fluctuation. "Waiting" is the key. Learn to wait, seize your own opportunities, and reduce the frequency of your stop-loss orders. Naturally, your income will be significantly improved.
Second, overcome greed. Greed is the most taboo thing in cryptocurrency trading, especially in contracts. The market fluctuates every day. If there is an increase, there must be a decrease. I have seen too many people who lost money or even went bankrupt because of greed and did not stop profit on their orders that were originally doubled.
Third, strictly stop profit and stop loss. This is the most important operation for contracts, and it is also an important reason why I can achieve a maximum return rate of 11570.96%. Before analyzing the market and opening an order, think about the position of the stop profit and stop loss, especially the position of the stop loss, and calculate whether the profit and loss ratio is worth doing this order. When you think it is okay, set these two positions. No matter how the market fluctuates, you will be as stable as a mountain. The stop loss position strictly stops loss and retains the principal. The stop profit position stops profit in batches to lock in profits.
Fourth, do a good job of position control when opening orders. Why do you need to do position control? A simple calculation will make it clear. If you make 20% profit on one order and lose 20% on another order, and the accuracy rate is 50%, 40 cycles can halve your assets. After accounting for the handling fee, there will be even less left, and the result is definitely that your assets will return to zero. Therefore, you must do a good job of position control. Fixed principal is a good choice. It is a good habit to withdraw profits, because the withdrawn funds are truly yours, and the profits left in the exchange are all floating profits.
Fifth, practice and review. When you have learned to control your mentality, position, funds and K-line operation techniques, you still lack the most critical and indispensable part of building your own system, which is practice and review. Practice makes perfect, and review can lead to progress.
When reviewing, you need to review every order and review every week. Notes and real trading can help you review and summarize, enrich your reasons for opening orders, and improve your take-profit and stop-loss points.
A trading system is not created overnight, but must be summarized in the continuous practice of opening orders. No one is born to understand K-line and contracts. They all summarize and learn through constant exploration. Who hasn't lost money and paid tuition? The important thing is that the tuition should not be paid in vain. Learn from your failures and gain experience from failed orders. Next time, you will naturally know what not to do and what to do in the same market.
From a huge loss of 8 million to a current wealth of more than 200 million, master the wealth code technology - master this technical indicator Boll. Once mastered, it is easy to make tens of millions! (Pure dry goods, suitable for everyone, you will learn it once, easy to understand) Must collect!
Without further ado, let’s get straight to the point!
I. Definition
Among all the indicator calculations, the calculation method of BOLL indicator is one of the most complicated, which introduces the concept of standard deviation in statistics and involves the calculation of middle rail (MB), upper rail (UP) and lower rail (DN). In addition, like the calculation of other indicators, due to the different calculation periods, BOLL indicators also include various types such as daily BOLL indicators, weekly BOLL indicators, monthly BOLL indicators, annual BOLL indicators and minute BOLL indicators. The daily BOLL indicators and weekly BOLL indicators are often used for market analysis. Although their calculation values are different, the basic calculation methods are the same.
Taking the daily BOLL indicator calculation as an example, the calculation method is as follows.
Middle line = N-day moving average
Upper rail line = middle rail line + twice the standard deviation
Lower track line = middle track line - twice the standard deviation
2. Index Representation
In the analysis board, the BOLL indicator is composed of four lines, namely the upper track UP, the middle track MB, the lower track DN and the price line. The upper track UP is the line connecting the UP values, represented by a yellow line; the middle track MB is the line connecting the MB values, represented by a white line; the lower track DN is the line connecting the DN values, represented by a purple line; the price line is represented by the K line. Like other technical indicators, in actual combat, investors do not need to calculate the BOLL indicator, but mainly understand the calculation method and process of BOLL, so as to more deeply grasp the essence of the BOLL indicator and lay the foundation for the use of the indicator.
3. BOLL's trajectory relationship and rise and fall judgment
1. When the upper, middle and lower lines of the Bollinger Bands move upward at the same time, it shows that the price is very strong and will continue to rise in the short term. Investors should firmly hold long orders and wait for the price to rise or buy on dips to go long.
2. When the upper, middle and lower lines of the Bollinger Bands move downward at the same time, it shows that the price decline is very obvious and will continue to fall in the short term. Investors should firmly hold bearish short positions or short on rallies.
3. When the upper track of the Bollinger Bands moves downward, while the middle track and the lower track are still moving upward, it indicates that the price is in a consolidation trend. If the price is in a long-term upward trend, it indicates that it is only a strong consolidation on the way up, and investors can hold more and wait and see or buy short-term on dips; if the price is in a long-term downward trend, it indicates that it is a weak consolidation on the way down, and investors should continue to hold bearish or sell short on rallies.
4. The upper line of the Bollinger Bands moves upward, while the middle and lower lines move downward at the same time, indicating that the price will experience a round of decline, and the magnitude of the decline will be determined by the size of the opening. Conversely, the lower line of the Bollinger Bands moves downward, while the middle and upper lines move upward at the same time, indicating that the price will experience a round of rise, and the magnitude of the rise will be determined by the size of the opening. This will not be discussed in detail here.
5. When the upper, middle and lower lines of the Bollinger Bands are almost horizontal at the same time, it depends on the current trend of the trading target price. Most of them are sideways and oscillating.
4. Analysis of the Bollinger Band "Trumpet"
The judgment of the "trumpet" of the Bollinger Bands is a unique judgment method of the BOLL indicator. The so-called "trumpet" of the Bollinger Bands refers to the special shape similar to the bell formed by the upper and lower rails of the Bollinger Bands expanding or approaching the middle rail from two opposite directions during the price movement. According to the different running directions and positions of the upper and lower rails of the Bollinger Bands, we can divide the "trumpet" into three types: open bell, closed bell and tight bell.
The open-type bell-mouth form often appears in the early stage of a short-term price surge, the closed-end bell-mouth form often appears in the early stage of a price plunge, and the tight-mouth bell-mouth form often appears in the late stage of a sharp price drop.
1) Open bell mouth
When the price has been consolidating at the bottom for a long time, the upper and lower tracks of the Bollinger Bands gradually shrink, and the distance between the upper and lower tracks becomes smaller and smaller. As the trading volume gradually increases, the price suddenly soars upward. At this time, the upper track of the Bollinger Bands also rises rapidly upward, while the lower track accelerates downward. In this way, the shape between the upper and lower tracks of the Bollinger Bands forms a special shape similar to a large trumpet. We call this trumpet mouth of the Bollinger Bands an open trumpet mouth.
The open trumpet is a pattern that shows a sharp upward breakthrough in the short term. It is formed when the price faces an upward change after a long period of sideways trading at a low level. The upper and lower tracks of the Bollinger Bands show a trend in completely opposite directions but with great force, indicating that the bulls are gradually getting stronger and the bears are gradually weakening, and the price will be in a short-term sharp rise.
The formation of an open trumpet shape must meet two conditions. First, the price must go through a long period of sideways consolidation at a low level. The longer the consolidation time and the smaller the distance between the upper and lower rails, the greater the future rise; second, there must be a significant large trading volume when the Bollinger Bands begin to open.
The establishment of the open bell-shaped pattern is based on the K-line breaking through the upper track line and the volume and price breaking through the medium and long-term moving average. For the emergence of the open bell-shaped pattern, if investors can buy in the short term in time, they will definitely make a lot of profit.
(2) Closed-end bell mouth
When prices have risen sharply in a short period of time, the upper and lower tracks of the Bollinger Bands gradually expand, and the distance between the upper and lower tracks becomes larger and larger. As the trading volume gradually decreases, prices fall rapidly at high levels. At this time, the upper track of the Bollinger Bands begins to turn downward rapidly, while the lower track is still accelerating upward. In this way, the shape between the upper and lower tracks of the Bollinger Bands becomes a special form similar to an inverted horn. We call this kind of horn of the Bollinger Bands a closed-mouth horn.
The closing bell-shaped mouth is a pattern that shows a sharp downward breakthrough in the short term. It is formed when the price faces a downward reversal after a short period of sharp rise. The upper and lower lines of the Bollinger Bands show a strong trend in opposite directions, indicating that the short-selling force is gradually getting stronger and the long-selling force is beginning to weaken, and the price will be in a short-term sharp decline.
Although the formation of a closing-mouth trumpet shape does not require trading volume, it must also meet one condition, that is, the price has experienced a substantial short-term rise in the previous period. The greater the rise and the greater the distance between the upper and lower tracks, the greater the future decline.
The establishment of the closing bell-shaped pattern is based on the price's upper track line turning downward and the price falling below the short-term moving average. For the appearance of the closing bell-shaped pattern, if investors can sell in time, they can keep their profits and reduce large losses. Or if investors can arrange short-term short orders in time, they will also make huge profits.
(3) Tight-mouth bell mouth
When the price has fallen for a long time, the upper and lower tracks of the Bollinger Bands gradually move closer to the middle track, and the distance between the upper and lower tracks becomes smaller and smaller. As the trading volume becomes smaller and smaller, the price oscillates repeatedly at a low level. At this time, the upper track of the Bollinger Bands is still moving downward, while the lower track is slowly rising. In this way, the shape between the upper and lower tracks of the Bollinger Bands becomes a special shape similar to an inverted trumpet. We call this trumpet mouth of the Bollinger Bands a tight-mouthed trumpet mouth.
The tight-mouthed bell-shaped pattern is a pattern that shows that the price will consolidate slightly for a long time and build a bottom. It is formed after the price has fallen sharply for a long time. It is a trend facing long-term adjustment. The gradual small convergence of the upper and lower tracks of the Bollinger Bands indicates that the power of the long and short sides is gradually balanced, and the price will be in a long-term sideways market.
The formation conditions and confirmation criteria of the tight-mouthed trumpet pattern are relatively loose. As long as the price has fallen sharply for a long time, the transaction volume has shrunk extremely, and the distance between the upper and lower rails is getting smaller and smaller, it can be determined that the tight-mouthed trumpet is initially formed. When the tight-mouthed trumpet appears, investors can either wait and see or open a small position.
5. Buy and sell signs on the middle track
1. When the K-line breaks through the middle track of the Bollinger Bands, if the price also breaks through the medium-term moving average of the price with large volume, it means that the medium-term upward trend of the price begins to form. This is a medium-term bullish and long sign revealed by the Bollinger Bands indicator.
2. When the K-line breaks through the middle track of the Bollinger Bands, if the price climbs upward relying on the middle track of the Bollinger Bands, it means that the medium- and short-term upward trend of the price has been formed. This is a bullish sign of buying on dips revealed by the Bollinger Bands indicator.
3. When the K-line falls below the middle track of the Bollinger Bands, if the price also falls below the medium and short-term moving averages, it means that the medium-term and short-term downward trend of prices begins to form. This is a medium-term and short-term bearish short-selling sign revealed by the Bollinger Bands indicator.
4. When the K-line breaks down the middle track of the Bollinger Bands, if the price is suppressed downward by the middle track of the Bollinger Bands, it means that the medium-term and short-term downward trend of prices has been formed. This is a bearish sign of shorting on rallies revealed by the Bollinger Bands indicator.
Seven forms of combining BOLL bands and K-line
1. When the current currency price is running in the area between the middle and upper tracks of BOLL, as long as the price does not fall below the middle track, it means that the market is in a bull market. The trading strategy to consider at this time is to buy at low points and go long, and do not consider shorting for the time being. In particular, if the BOLL angle is running upward at more than 45 degrees, and the K line is close to the upper track of BOLL, then you should hold long orders at this time, and it is not recommended to fight short.
2. When the current currency price is running in the area between the middle and lower tracks of BOLL, as long as the price does not break through the middle track, it means that the market is in a bearish market. At this time, our trading strategy recommends shorting at highs and not considering opening long positions for the time being. If the downward angle of the BOLL band exceeds 45 degrees, forming an obvious falling pattern, the K-line falls sharply along the lower track of BOLL, at this time we must firmly be bearish and refuse to open long positions to fight for a rebound, and wait for the BOLL band to start closing before making a judgment.
3. When the current coin price is running in the BOLL middle track area, the market long-short balance is manifested as repeated oscillations, and the coin price will oscillate repeatedly up and down the middle track. This market is most lethal to friends who follow the trend. After judging the wrong breakthrough signal, the transaction often suffers losses from long and short sweeps. At this time, the best operation is to wait and see with empty positions and wait for the market to stabilize. Of course, if you are confident in your technology, you can also stop profit back and forth.
4. When the BOLL channel enters a shrinking state. After a period of price rise or fall, it will definitely enter a rest period. The price will fluctuate repeatedly within a range. As time goes by, the oscillation area will become smaller and smaller, in preparation for the next unilateral movement. At this time, the BOLL channel shows that the distance between the upper, middle and lower tracks is getting closer and closer. This state is a sign before the arrival of a big market. At this time, the most reliable trading strategy is to wait and see with empty positions, and then trade in line with the trend after the direction is revealed.
5. When the BOLL channel suddenly enters an expansion state from a contraction state. After the price fluctuates and chooses a direction, a unilateral breakthrough will be formed. At this time, the BOLL channel will suddenly expand, which means that another round of explosive market has arrived, and the market will enter a unilateral trend from then on. In this case, we should actively adjust our positions and follow the trend to build positions.
6. False breakouts in the BOLL channel. When the BOLL channel narrows sharply and the market fluctuates, a false breakout often occurs before the next round of big market comes. This is a trap created by the main force before the main force exerts its strength, which is often called "short trap" or "long trap". It is usually manifested as a large K column breaking through the upper or lower track, followed by a rapid rebound or fall, accompanied by a long upper shadow or lower shadow. At this time, the best trading method is to reduce risks and losses through our position control methods. When we find that it is a trap, we still have enough funds and time to adjust our layout!
7. After the market adjusts, when the price rises sharply or falls sharply in a short period of time, the slope of the BOLL line exceeds 45 degrees. Then the price will pull back (rebound) after the sharp rise (fall), and then continue to rise (fall). This is the best time to make a single point, which can be judged by the BOLL line:
1. When the price rises sharply, the distance between the upper and middle rails of BOLL is not large. When the price falls back to between the middle and upper rails, you can open long positions in batches.
2. During a sharp drop, the distance between the BOLL lower and middle tracks is not large. When the price rebounds between the lower and middle tracks, it is the time to short in batches.
Learn these 4 points and you will be a master of Bollinger Band indicator!
It is an indicator that displays signals through shapes, which can not only determine the ups and downs, but also achieve the effect of support and resistance. Such an indicator that kills two birds with one stone and is so vivid must be recommended to newcomers in the cryptocurrency circle!
It is the Bollinger Bands indicator, or BB for short, also known as the Bollinger Bands channel or Bollinger Bands channel. It is a medium- to long-term trend indicator, which means that the longer the time period you choose, the more accurate the trend shown by this indicator.
In the specific chart, there are actually three lines. The upper limit is the resistance line, the lower limit is the support line, and the middle is the midline! The upper and lower interfaces form a channel, so the corresponding resistance line is also called the upper track, and the support line is called the lower track. The width of the channel can reflect the fluctuation range of market prices! The wider the channel, the greater the market price fluctuation.
As shown in the above figure, adding the BB indicator to the EUR/USD daily chart, it is obvious that the market trend in the early stage has a relatively small fluctuation range, and the market fluctuation in the red box is relatively large. Correspondingly, the Bollinger band channel in the red box is also relatively wide!
Here comes the most important information. How do we usually use the Bollinger Band indicator?
The BB indicator can measure the volatility of the market and determine the medium- and long-term movement trend of the market. Since it has a midline, pressure line and resistance line, it can do anything that the moving average can do, and can be used to determine the pressure level and resistance level, so as to set the stop loss point!
Determine market trends
The width of the Bollinger Band channel can reflect the market situation. The wider the width, the stronger the market volatility. However, the market price always fluctuates around the midline, so when the K-line chart is above the Bollinger Band midline, the market shows an upward trend; when the K-line chart is below the Bollinger Band midline, the market shows a downward trend.
When the candlestick chart approaches the upper track of the Bollinger Band, it means that the price will continue to rise and the market will enter the overbought stage. The upper track may be broken at any time, but it will soon reverse. As shown in the figure below
When the K-line chart is close to the lower track of the Bollinger Band, it means that the market price will continue to fall, the market will enter the oversold stage, and the market price will rebound soon. As shown in the above figure
Pressure and resistance levels
The market trend always fluctuates around the middle line. When the price breaks through the upper rail upward, the upper rail acts as a resistance level and the market will fall soon.
Similarly, when the market price breaks down the lower track, the lower track can act as a pressure level, causing the price to move toward the middle line again.
As shown in the figure below, the red circled parts are the upper and lower tracks of the Bollinger Band channel, which act as resistance and pressure, making the market price closer to the midline.
So when you find that the market trend has a tendency to break through the upper and lower tracks, pay attention to the upcoming trend reversal. Because it is impossible for the price to break through the upper and lower tracks for a long time!
Stop Loss
Since the upper and lower tracks can act as resistance and support levels, we can use the Bollinger Bands indicator to set a rough stop loss level. The stop loss level we choose is different according to different channel patterns.
Generally, when the market price fluctuates greatly and the Bollinger Bands channel opens, the stop loss is often set slightly above the midline due to uncertainty about the market.
As shown in the figure below: When encountering a channel opening, set the stop loss slightly above the midline. If the market rise is a false market, it may be able to pull back at any time above the midline. Setting the stop loss above the midline is the most sensitive position.
When the Bollinger Bands are closing, the market is in a volatile market. Prices often fluctuate frequently, and the stop loss can be set above the visible highest point and below the lowest point.
As shown in the figure below: When the channel closes, it usually does not last too long. As you can see from the figure, the channel opens again soon! So you must operate with a short-term light position, and even the volatile market is not suitable for operation! You can set a stop loss at the visible highest and lowest points.
In fact, cryptocurrency friends still use Fibonacci retracement lines to set stop losses. At this time, Bollinger Bands can serve as auxiliary verification.
Use in combination with other indicators
From the above applications, we can only predict the rise and fall of the market, but where is the best entry point? For example, if the market continues to rise along the upper track, when will it reverse?
At this time, you need to use other indicators, such as the RSI indicator or KDJ indicator to judge overbought and oversold conditions, or the MACD indicator that can give buy and sell signals.
As shown in the figure below, the BB indicator and the KDJ indicator are used together. In a falling market, below the 50 horizontal line, the KDJ indicator can give specific market rebound points, including points A and C, and large points B and D. Obviously, if you enter the market and go long at point B, it will be a good deal.
Similarly, in an upward market, above the 80 horizontal line, the KDJ indicator can give two specific market pullback points. Point B is a large pullback point, and shorting here is the best point.
As shown in the figure below, the RSI indicator is combined with the Bollinger Band channel. In a downtrend, the RSI indicator at the 30 level can give a specific oversold bullish point, as shown in the red circle in the figure; in an uptrend, the RSI indicator at the 70 level can give a specific overbought bearish position, as shown in the green circle in the figure.
As shown in the figure below, the Bollinger Bands are combined with the MACD indicator. When the bar rises from below the zero line to above, and the faster-moving DIFF line (the black line in the figure) breaks through the slower-moving DEA line (the green line in the figure), it is a good entry point. When the bar falls from above the zero line to below, and the DIFF line breaks through the DEA line downward, it is a sell signal.
In fact, the above application is to combine the leading indicators and lagging indicators, so that the trading judgment will be more accurate.
Finally, let’s summarize the usage of Bollinger Bands:
1. The middle line of the Bollinger Band can reflect the movement trend of the market.
2. When the Bollinger Band channel narrows, it means that the market volatility is small, but the shock trend is short-lived; when the Bollinger Band channel widens, it means that the market trend may come.
3. When the K-line chart is close to the upper track, the market shows a continuous upward trend and may break through the upper track; when the K-line chart is close to the lower track, the market shows a continuous downward trend and may break through the lower track.
4. The market price always moves towards the center line. When the market price breaks through the upper and lower tracks, the trend will eventually reverse. The specific time of the reversal can be determined by combining the KDJ or RSI indicators.
5. Buy signal combination: the price keeps touching the upper track and the MACD indicator is positive. Sell signal combination: the price keeps touching the lower track and the MACD indicator is negative.
Seven forms of combining BOLL bands and K-line
1. When the current currency price is running in the area between the middle and upper tracks of BOLL, as long as the price does not fall below the middle track, it means that the market is in a bull market. The trading strategy to consider at this time is to buy at low points and go long, and do not consider shorting for the time being. In particular, if the BOLL angle is running upward at more than 45 degrees, and the K line is close to the upper track of BOLL, then you should hold long orders at this time, and it is not recommended to fight short.
2. When the current currency price is running in the area between the middle and lower tracks of BOLL, as long as the price does not break through the middle track, it means that the market is in a bearish market. At this time, our trading strategy recommends shorting at highs and not considering opening long positions for the time being. If the downward angle of the BOLL band exceeds 45 degrees, forming an obvious falling pattern, the K-line falls sharply along the lower track of BOLL, at this time we must firmly be bearish and refuse to open long positions to fight for a rebound, and wait for the BOLL band to start closing before making a judgment.
3. When the current coin price is running in the BOLL middle track area, the market long-short balance is manifested as repeated oscillations, and the coin price will oscillate repeatedly up and down the middle track. This market is most lethal to friends who follow the trend. After judging the wrong breakthrough signal, the transaction often suffers losses from long and short sweeps. At this time, the best operation is to wait and see with empty positions and wait for the market to stabilize. Of course, if you are confident in your technology, you can also stop profit back and forth.
4. When the BOLL channel enters a shrinking state. After a period of price rise or fall, it will definitely enter a rest period. The price will fluctuate repeatedly within a range. As time goes by, the oscillation area will become smaller and smaller, in preparation for the next unilateral movement. At this time, the BOLL channel shows that the distance between the upper, middle and lower tracks is getting closer and closer. This state is a sign before the arrival of a big market. At this time, the most reliable trading strategy is to wait and see with empty positions, and then trade in line with the trend after the direction is revealed.
5. When the BOLL channel suddenly enters an expansion state from a contraction state. After the price fluctuates and chooses a direction, a unilateral breakthrough will be formed. At this time, the BOLL channel will suddenly expand, which means that another round of explosive market has arrived, and the market will enter a unilateral trend from then on. In this case, we should actively adjust our positions and follow the trend to build positions.
6. False breakouts in the BOLL channel. When the BOLL channel narrows sharply and the market fluctuates, a false breakout often occurs before the next round of big market comes. This is a trap created by the main force before the main force exerts its strength, which is often called "short trap" or "long trap". It is usually manifested as a large K column breaking through the upper or lower track, followed by a rapid rebound or fall, accompanied by a long upper shadow or lower shadow. At this time, the best trading method is to reduce risks and losses through our position control methods. When we find that it is a trap, we still have enough funds and time to adjust our layout!
7. After the market adjusts, when the price rises sharply or falls sharply in a short period of time, the slope of the BOLL line exceeds 45 degrees. Then the price will pull back (rebound) after the sharp rise (fall), and then continue to rise (fall). This is the best time to make a single point, which can be judged by the BOLL line:
1. When the price rises sharply, the distance between the upper and middle rails of BOLL is not large. When the price falls back to between the middle and upper rails, you can open long positions in batches.
2. During a sharp drop, the distance between the BOLL lower and middle tracks is not large. When the price rebounds between the lower and middle tracks, it is the time to short in batches.
Giving roses to others will leave a lingering fragrance on your hands. Thank you for your likes, attention, and forwarding! I wish you all financial freedom in 2025!
The above are the summaries of my practical experience and technology in cryptocurrency trading for more than 10 years. They may not be suitable for everyone. Everyone needs to use the summary in combination with their own practice. As a trader, the most terrible thing is not that you have technical problems, but that you are not aware enough and fall into these trading traps without knowing it! There is no invincible trading system, only people who use the trading system invincibly! This is the truth. The trading system will eventually return to people!
I still say that, if you don’t know what to do in the bull market, click on my avatar and follow me, I will share the bull market spot planning and contract password for free.
I need fans, you need references. It's better to pay attention than to guess.
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