I am 28 years old this year, I started trading cryptocurrencies at 22, and in 2023-2024, my capital reached 8 digits. Now my life style includes staying in high-end hotels around 2000 yuan, and my suitcase and hat may have cryptocurrency symbols. It is much more comfortable than what the older generation does in real business or the 80s doing e-commerce.
I have hardly experienced business disputes with others, with fewer worries.
The biggest point in trading cryptocurrencies is to have a good mindset, technical skills are secondary.
1. In most cases, Bitcoin is the leader of price movements in the cryptocurrency market, and Ethereum, while strong, can sometimes move independently of Bitcoin, while altcoins generally cannot escape its influence.
2. Bitcoin and USDT move inversely; if you find USDT rising, be alert to Bitcoin falling; when Bitcoin rises, it is the right time to buy USDT.
Between 0:00 and 1:00 AM, there is a tendency for price spikes, so domestic traders can try to place low buy orders for their desired coins before going to bed, and high sell orders, you might just get executed while you sleep.
4. Every morning from 6-8 AM is a key time to assess buying or selling, as well as to determine the day's price fluctuations. If it has been falling from 0:00 to 6:00, and continues to fall, this is a buying or averaging opportunity, and the day is likely to rise. Conversely, if it has been rising from 0:00 to 6:00, and continues to rise, it is a selling opportunity, and the day will likely fall.
5. 5 PM is an important point of attention rumored in the trading community; due to time differences, traders in the US are waking up and starting work, which may cause fluctuations in cryptocurrency prices. Some significant rises or falls have indeed occurred at this time, so pay close attention.
6. There is a saying about 'Black Friday' in the market, where there have been instances of significant drops on Fridays, but there are also significant rises or consolidations; it is not particularly reliable, just pay attention to the news.
7. If there is a certain trading volume assurance, and if it falls, don't worry, patiently holding will definitely bring back profits, whether in 3-4 days for short or a month for longer; if you have extra USDT, average down to pull the price down, and you'll recover faster. If you have no extra money, just wait, it won't disappoint you. Unless you really bought at 1.
8. Doing spot trading and holding long-term with fewer trades yields greater returns than frequent trading; it depends on whether you have the patience to hold. I bought Dogecoin at 0.089 and it has increased more than 20 times since then.
After thinking for a long time, I decided to share my short-term trading principles that turned 50,000 into 23.98 million in just two years in the cryptocurrency market!
If you are currently losing and want to treat trading cryptocurrencies as a second profession in the future, please read carefully; you will definitely gain something, I suggest saving this!
A strong trend reversal signal: 'Three White Soldiers and Three Black Crows Pattern' trading strategy!
In the trading market, we encounter many different patterns on the chart. Today, we introduce a trading strategy based on two candlestick patterns:
1. 'Three White Soldiers' Forex Trading Strategy 2. 'Three Black Crows' Forex Trading Strategy First, let's get to know these two chart patterns. Three White Soldiers (Three White Soldiers) is a candlestick pattern made up of 3 bullish candlesticks.
In a downtrend, this pattern gives a strong reversal signal. This price pattern is quite accurate for judging bullish trends and should not be ignored.
Conversely, the Three Black Crows (Three Black Crows) is a candlestick combination pattern formed by 3 bearish candlesticks in an upward trend, usually indicating that the price will reverse downward.
Note that these two chart patterns can be used in combination; for simplicity, we will refer to them as the 'Three White Soldiers and Three Black Crows Trading Strategy.'
Three White Soldiers Chart Pattern Characteristics As mentioned above, the Three White Soldiers pattern is a bullish reversal candlestick pattern made up of three bullish candlesticks.
1. The market must be in a downtrend.
2. You will observe three bullish candlesticks forming on the chart, which create the Three White Soldiers chart pattern.
3. Each candlestick must open within the body of the previous candlestick.
4. Each candlestick's closing price must be higher than the closing price of the previous candlestick.
When observing the Three White Soldiers pattern formed in a downward trend, you should at least take note, as this is a potential signal for a trend change.
When you see these candlestick patterns, the first thing that comes to mind is that they may give you a 'bullish' signal. We want to see longer bodies for these candlesticks, indicating that either many bulls are entering the market or short sellers are taking profits.
Three Black Crows Chart Pattern Characteristics
The Three Black Crows chart pattern is completely opposite to the Three White Soldiers pattern. The Three Black Crows pattern is a bearish reversal chart pattern made up of 3 bearish candlesticks.
1. The market must be in an upward trend.
2. You observe three bearish candlesticks and confirm that the Three Black Crows pattern has formed.
3. Each candlestick must open within the body of the previous candlestick.
4. The closing price of each candlestick must be lower than the closing price of the previous candlestick. In daily trading, if you observe the Three Black Crows pattern appearing in an upward trend chart, you should take note, as this is a signal that the trend is about to change.
How to Trade the Three White Soldiers and Three Black Crows Patterns?
The advantage of this trading strategy is that it requires no indicators, as it is a purely price action trading strategy, allowing us to decide how to trade based on price movements.
Time Frame: Like any chart pattern trading strategy, it is recommended to trade in higher time frames, as this tends to yield better results. Of course, you can also use these time frames in intraday trading.
Currency Pair: Can be any currency pair in a trend.
Indicators: This strategy is purely price action based and does not require any trading indicators.
Trading Rules:
1. If the chart forms the Three White Soldiers pattern, you can set a buy stop-loss order 3-5 points above the high of the third candlestick; or if the Three Black Crows pattern forms, you can set a sell stop-loss order 3-5 points below the low of the third candlestick.
2. If you set a sell stop-loss order, you can place the stop-loss above the high point of the third candlestick; if it's a buy stop-loss order, set the stop-loss below the low point of the third candlestick. Additionally, you can set a trailing stop-loss to prevent the price from moving in the opposite direction.
3. Take previous high or low points as targets for taking profits.
4. When the profit target is at least halfway reached, you can appropriately take some profits.
Important Trading Reminders
It is worth noting that not all charts that form the Three White Soldiers and Three Black Crows patterns are valid, so they can only be considered as trading signals.
Like most trading patterns, these two patterns may also be 'illusions'.
In addition, it is also important to judge the positions of the Three White Soldiers and Three Black Crows patterns, focusing on:
Support and Resistance Levels
Pivot Levels
Fibonacci Levels
The positions mentioned above are all important areas, especially when used on higher time frame charts.
Besides these important positions, you should trade the Three White Soldiers and Three Black Crows patterns cautiously, as there truly may not be a reason to expect a reversal at other times.
Additionally, caution is needed when trading the combination of the two patterns, as once the price moves away from the pattern, a reversal may occur and re-test, at which point you may be stopped out.
Strategy Drawbacks
Every trading strategy has its weaknesses; one weakness of this strategy is that the stop-loss distance for the two patterns is relatively large. If you enter a trade, your stop-loss distance needs to be greater, which may force you to reduce your position size.
When these patterns form, it does not necessarily indicate a true reversal signal; after you enter, you may find that the price only temporarily reverses.
Strategy Advantages
If this strategy can develop as planned in a good trending trade, you can easily make profits, especially in larger time frames of 1 hour or more.
The pattern that is opposite to the Three Black Crows is called the Three White Soldiers advancing pattern, or more commonly referred to as the Three White Soldiers pattern (as shown below). Many technical candlestick terms are closely related to warfare, and this pattern is a typical example. This pattern is composed of three consecutive white candlesticks, with their closing prices rising sequentially. When the market stabilizes at a certain low price for a period of time, if such a pattern appears, it indicates that the market is about to strengthen.
The Three White Soldiers pattern is characterized by a gradual and stable upward process, where the opening price of each white candlestick is within or close to the previous day's white body. Each white candlestick's closing price should be at or near the day's highest price. This is a very robust way for the market to climb (however, if these white candlesticks extend too much, we should also be wary of the market being overbought). If the second and third candlesticks, or just the third candlestick, show signs of weakening upward momentum, it forms a preceding resistance pattern (as shown below).
This means that the current upward trend is encountering trouble, and those holding long positions should take some protective measures.
Especially in the late stages of an upward trend, if a preceding resistance pattern appears, extra caution is warranted.
In the preceding resistance pattern, as a specific manifestation of weakening upward momentum, it may be that each white body is smaller than the previous one, or the last two white candlesticks have relatively long upper shadows. If in the last two candlesticks, the first is a long white body that has pushed to a new high, and the second is just a small white candlestick, then it forms a pause pattern (as shown below).
Sometimes, this pattern is also referred to as the deep thought pattern. When this pattern appears, it indicates that the bulls' power has at least temporarily been exhausted. In this pattern, the last small white candlestick may either gap up from the previous long white candlestick (in which case it becomes a star candlestick), or as described by Japanese analysts, 'sitting on the shoulder of that long white body' (which means it is at the top of the previous long white body). This small body exposes the declining strength of the bulls. When the pause pattern occurs, it constitutes a crucial moment for bulls to take profits.
Although the preceding resistance pattern and the pause pattern generally do not belong to top reversal patterns, sometimes they can also lead to significant downward trends. We should use the preceding resistance and pause patterns to close existing long positions or take protective measures for long positions, but we should not open short positions based on them. Generally speaking, if these two types of patterns appear at higher price levels, they are more predictive.
The above pattern may occur in low price areas or during upward trends. There is not much difference between the preceding resistance pattern and the pause pattern. Regarding the Three White Soldiers, the main consideration is that if the closing price of each of the three candlesticks is above or close to the highest price of the period, it is the most constructive. If the last two candlesticks show signs of hesitation, such as small bodies or upper shadows, then these clues indicate that the upward trend is weakening.
Figure 4 Intel -- Daily Candlestick Chart (Three White Soldiers Pattern)
Figure 4 shows a classic example of the Three White Soldiers pattern, as each of the candlesticks, especially the last two, is relatively strong, with opening prices close to the lowest point of the period and closing prices at or near the highest points of the period. April 23 is a Doji line that forms a Doji engulfing pattern, signaling hesitation in price action.
Figure 5 Microsoft -- Daily Candlestick Chart (Three White Soldiers Pattern) Figure 5 is a good example of the Three White Soldiers pattern. The closing prices of the three white candlesticks are very close to the highest price of the period, and each opening price is within or above the previous candle's body. One aspect to consider about the Three White Soldiers pattern is that by the time it completes, the market may have already moved significantly away from its lows. In this case, Microsoft moved almost $4 from its low, which is a significant price change. Therefore, unless traders are bullish in the long term, buying at the completion of the Three White Soldiers pattern may not offer an attractive risk-reward ratio.
I have found that after the Three White Soldiers pattern appears, once the market adjusts, the first or second white candlestick, which is the starting point of the Three White Soldiers, often forms a support level. In this case, after the Three White Soldiers pattern appears, the stock enters a consolidation phase, slowly retracing until it forms a hammer candlestick. This validates the support level formed inside the second candlestick of the Three White Soldiers pattern.
- Daily Candlestick Chart (Three White Soldiers Pattern) Figure 6 Praxair
In Figure 6, a bottom formed in mid to late June and early July around $36.50. Then, the Three White Soldiers pattern appeared (even though they all had very short upper shadows), and after the third white candlestick, the stock began to hesitate, retracing into the body of the first white candlestick on July 11. This again illustrates that sometimes the market may adjust after the Three White Soldiers pattern. Once an adjustment occurs, we anticipate that the stock will find support when entering the body of the second, especially the first white candlestick.
Figure 7 United Health Group -- Daily Candlestick Chart (Preceding Resistance Pattern) Figure 7 shows an example of a preceding resistance pattern. Although there are three relatively tall white candlesticks, the last two have bearish upper shadows. This reflects that the current upward momentum is blocked and has stalled. In fact, more candlesticks with upper shadows formed afterward, as indicated in the chart at points 1 and 2, revealing a resistance level close to $51. The candlestick with a long upper shadow at point 2 is a shooting star, which, together with the next day's candlestick, forms a bearish engulfing pattern.
Trading is a long-term endeavor that requires continuous learning and self-improvement. The content of learning can generally be divided into three major directions.
① Learning about technical aspects.
② Learning about fundamentals.
③ Learning about trading habits and psychology.
Finally, remember to test the effectiveness of any trading strategy using a demo account before engaging in live trading.
Creating is not easy, if it helps everyone, please pay attention!!!
Follow Brother Jie and eat nine meals a day! Whether you earn a lot or a little is your choice, but I only give the opportunity once. If you want to get on board, hurry up, don't regret it after others have made their profits!
Market does not wait for anyone, hesitation is a missed opportunity!
