Teaching a man to fish in the crypto circle—sharing ultra-short logic
First rule, regarding coin selection, consider looking for those that have recently hit a limit up; that is a true gold mine. If a coin hasn't hit a limit up for a long time, hasn't had high volume, and hasn't broken through, then don't touch it. This indicates that there is no major force behind it. Secondly, only choose strong stocks; strong coins' candlestick patterns are easy to understand. In summary, it's characterized by many bullish candles and few bearish ones, meaning that during uptrends, there are often three large bullish candles followed by a small bearish candle for a pullback, with more bullish candles and fewer pullbacks. When it drops, it's mainly small bearish candles. This structure is a hallmark of strong coins.
Second rule, regarding positions dropping below 20%, it indicates a deterioration in trend. Making money in a downtrend is accidental; losing money is inevitable. This is also what we often say about going with the trend.
Third rule, regarding favorable news, if there is frequent good news at high levels, do not touch it. If a coin has already risen several waves at low levels, the main force cannot distribute at this point, so they have to find ways to attract retail investors to take over. That’s why they release favorable news, using it to cover their distribution.
Fourth rule, regarding technical indicators, all technical indicators are supplementary, but trading volume is particularly important. Remember these four phrases about trading volume: an increase in volume during a decline at low levels indicates accumulation; a decrease in volume during a decline at low levels indicates a lower price; an increase in volume at high levels indicates distribution; a decrease in volume at high levels indicates accelerated upward movement. In an upward trend, a decrease in volume while rising still indicates further increases; in a downward trend, a decrease in volume while rising indicates a continuation of the decline.
Fifth rule, regarding a sharp rise followed by significant adjustments, if mild volume appears at the bottom and hits a limit up, you must stabilize yourself. Don't just take a little profit and run. The longer the sideways movement at low levels, the stronger the subsequent explosive power. However, if there is massive volume increase at low levels, it's time to exit. The next day usually opens lower and continues to drop, indicating that the main force is using the limit up to quickly accumulate, and they haven't truly intended to start a major upward trend yet.
Sixth rule, regarding trading modes, among the vast opportunities, only take the one that belongs to you. There are daily opportunities in the crypto circle, but truly belonging to you, opportunities are not often seen. What you need to do is to wait patiently for the opportunities that align with your trading system. Never let the market's other confusions disturb you; be brave enough to stay in cash because the market is never short of opportunities; it lacks the ability to seize them. Before you have a mature trading model, you can only clear your positions to learn; do not rush into it recklessly.
The last rule, and the most important one, is that the crypto circle is not a 100-meter sprint; it is a marathon. Never let emotions get the best of you, as it may backfire. This is ultra-short logic; the mid-line is calculated separately.
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