Five years ago, there was a night when I was awakened by the red alarm sound from the exchange. In just three hours, my assets of 6 million in my account were completely wiped out, leaving me with nothing. I watched the continuously fluctuating negative numbers on the computer screen, feeling like I was nailed to the cross of reality!

Only after understanding did I realize: the crypto world is not a casino, but a battlefield. I borrowed 200,000 in capital from friends everywhere, constantly summarizing failed cases, learning various trading techniques, strategies, and market analysis, eventually summarizing a set of trading methods with a success rate of 90%. It was not easy to grow the capital to over 20 million in 90 days!

The market is always changing, but the rules do not change. Your only goal is: to not be washed out in this wave of elimination. If you feel confused, it might be a good idea to bookmark this article as a starting point for your trading journey. It’s not about getting rich quickly, but about staying in the game.

Without further ado, let's start with 8 iron rules; understanding them is the path to profit!

1. When the market crashes sharply, if your coin only drops slightly, it indicates that there are market makers protecting the price from falling. Such coins can be held with peace of mind, and there will definitely be rewards in the future.

2. For beginners buying and selling coins, there is a simple and direct method: for short-term trades, look at the 5-day line. As long as the coin price is above the 5-day line, hold it; if it falls below, sell. For medium-term trades, look at the 20-day line: if it is above the 20-day line, hold it; if it falls below, exit. The method that suits you best is the best, and the key is to stick to it.

3. If the main upward wave of a coin has formed and there is no significant increase in volume, then buy decisively. Continue to hold during a volume increase, hold during a decrease in volume as long as the trend has not broken; if a volume decrease occurs and the trend is broken, then quickly reduce your position. After a short-term purchase, if the coin price does not change within three days, sell if you can. If the coin price drops after purchase, set a stop loss unconditionally if the loss reaches 5%.

4. If a coin has dropped 50% from a high position and has continued to fall for 8 days, it indicates that it has entered an oversold state, and a rebound may happen at any time, so it can be considered for follow-up.

5. When trading coins, choose leading coins, because they rise the most when they go up and are the most resistant to declines. Do not buy just because the coin price has dropped significantly, and do not avoid buying just because it has risen significantly. When trading leading coins, the most important thing is to buy at high levels and sell at even higher levels.

6. Trade in accordance with the trend; the buying price is not about being as low as possible, but about being as suitable as possible. Do not easily call a bottom during a decline; let go of coins that perform poorly. The trend is the most important.

7. Do not let a momentary profit make you impulsive; you must know that sustained profits are the hardest. Review carefully to see if your profits are due to luck or skill. Establish a stable trading system that suits you, and that is the key to sustained profits.

8. Do not force trades without sufficient confidence. Holding cash is also a strategy; learning to hold cash is very important. Trading should first consider capital preservation, not profit. The competition in trading is not about frequency, but about success rate.

Friends, today I would like to share with you three classic uses of the EMA indicator. Mastering them will give you more confidence in your trading.

Identify the major trend

If you want to identify the major trends in the market, then the 'Zero Crossing Method' is definitely worth studying. This method is simple and practical; with just one line, you can have the same analytical skills as many professional technical analysts. This line is the DIF line of the EMA indicator. Let's first understand the EMA indicator. Take Bitcoin (BTC) for example; we set the parameters of the EMA indicator to 12 and 26, and then analyze it in a 1-hour timeframe. You will find that every time a golden cross appears, it often represents a good entry opportunity.

Take Bitcoin (BTC) for example; we set the parameters of the EMA indicator to 12 and 26, and then analyze it in a 1-hour cycle.

You will find that every time a golden cross appears, it often represents a good entry opportunity.

In simple terms, the EMA indicator composes a DIF line through the parameters of 12 and 26, which can effectively identify medium-term trends.
Whether it's a golden cross or a dead cross, the market usually follows with a good trend.

In fact, the actual performance of this set of indicator parameters is the same as that of the DIF line in the MACD indicator.

For ease of operation, everyone can also directly use the DIF line of the MACD for analysis.

This is the role of the DIF line

Here, it should be noted that the larger the cycle, the stronger the trend indication of the DIF line. For example, we can choose a 4-hour cycle to use the DIF line to identify the trend direction.

When the DIF line falls below the zero axis, we can take some profits and be cautious about going long;

And when it breaks above the zero axis, combined with other indicators and large order data, we can be more confident in going long.

Because once the zero crossing occurs, it indicates that a trend has formed, and before this trend ends, we will have many entry opportunities.

Therefore, I suggest everyone treat the DIF line as a trend indicator. Its underlying logic is formed by EMA12 and EMA26, and it can be understood as part of the EMA indicator.

Many people think the EMA indicator has a lag; in fact, this is a misunderstanding. The EMA indicator uses a weighted average algorithm, giving higher weight to recent prices. Therefore, when recent prices show a significant change, it will immediately reflect in the EMA indicator, and it can also reflect the price level over a period of time. The EMA indicator achieves a good balance between sensitivity and stability, making it very suitable as a technical analysis tool. To summarize, use the 4-hour cycle to determine the trend; when the DIF line crosses upwards, look for long positions, and when it crosses downwards, look for short positions.

Find EMA signals

1. Resonance signals

This is a very stable trading method.

I have a set of EMA resonance algorithms here. Its advantages are many signals, precise entries, and quick exits. The solid green arrow represents the start of bullish resonance, and the hollow arrow represents the end of bullish resonance. If the market trend is upward, we can decisively enter based on these signals. In a downward trend, there will also be corresponding short signals.

My suggestion is to first confirm the trend with the DIF line, and then try using this set of resonance indicators. Everyone can also change the parameters of the resonance themselves; currently, the resonance parameters I am using consist of 6 EMAs.

This pure EMA bullish resonance indicator is easy to understand: when all EMAs show a bullish arrangement, we open long positions; when they show a bearish arrangement, we open short positions. It can provide us with excellent entry and exit opportunities. If you can't find a suitable reason to enter the market and easily feel anxious in the market, then the bullish and bearish arrangement signals of the EMA are very suitable for you.

It can help you not miss the best entry points. Simply put, use the DIF line to determine the trend and the resonance signals to find entry opportunities. Combining the two will greatly increase your chances of making money.

Here, classmates can subscribe and change to the EMA resonance indicators they want

I have done the third thing!

This time I recommend this set for everyone to try

DIF line determines the trend, resonance signals find the entry, and together they lead to profits!

Next, let me show you the live trading and make recommendations

First recommendation: AI Grid

Recommendation reason: After breaking through a new high, there will currently be a small fluctuation, which is very suitable for grid trading. Automated low buying and high selling, making money while lying down.

The reason why the host recommends it is that I have always used AICoin's AI Grid for trading.

Running the grid continuously since July 31, 2024,

It is important to note that if there is a period when the grid is broken above or below, we need to readjust the upper and lower limits.

This is the new upper and lower limit range I set after breaking through a new high.

Of course, my grid funds are not large, only 700 USDT, but the results are very good, and the returns are basically continuously increasing.

Second recommendation: Arbitrage

The host has been continuously running positive arbitrage, making money through funding fees.

I have also been conducting positive arbitrage trading, profiting by earning funding fees. My invested capital is about 30,000 USDT, and I can basically receive profits three times a day, just like receiving money at set times.

If your capital is relatively large, arbitrage is a very good choice. Its advantage is its stability, and making money has a high certainty.

Some friends with a capital amount of over 100,000 USDT have also made a lot of money using AICoin's arbitrage module, which is fast and stable in returns. In short, there are many opportunities to make money in the market, and arbitrage is very suitable for large funds to participate in, allowing oneself to gain profits from the market; that feeling of certainty is really great.

The above are some of my views and insights. If you find them helpful, feel free to like and save them. I am Sunny Day, someone who has experienced three rounds of bull and bear markets, skilled in logical coin selection and technical timing, engaging in trades within my cognitive range, and each direction has been validated by the market!

Even the most diligent fisherman would not go out to sea during stormy weather, but would carefully protect his fishing boat. This season will eventually pass, and a sunny day will come! Focus on sunny days, and you will be taught both fishing and how to fish. The door to the crypto world is always open; only by going with the trend can one have a life that flows with the tide. Collect this and keep it in mind!