I know an old senior who invested 100,000 yuan into the cryptocurrency market and now has a market value of 42 million. He said something that really enlightened me. He said, "The cryptocurrency market is full of mobs. You just need to control your emotions. This market is like an ATM!
When you are working in the cryptocurrency circle, trading strategy is your "secret weapon". The following tips are the crystallization of practical experience, so save them now!
Entry: Test the waters in the cryptocurrency circle and be prepared first; enter the market steadily and avoid being reckless.
Sideways trading: If the price goes sideways at a low level and hits a new low, it is the right time to buy at a low position; if the price goes sideways at a high level and then rises again, sell decisively without hesitation.
Volatility: Sell when the price goes up, buy when the price goes down; wait and see when the price goes sideways, and reduce trading. Sideways means that the price goes sideways instead of falling, so hold on to your chips, as the price may go up in the next second; when the price goes up very fast, be alert to the price going down sharply, and be ready to cash in at any time; when the price goes down slowly, it is a good time to gradually cover your position.
Buying and selling opportunities: Don’t sell if it’s not going up; don’t buy if it’s not going down; don’t trade if it’s going sideways. Buy on the Yin line and sell on the Yang line. Only by doing the opposite can you stand out. Buy when it’s falling sharply in the morning and sell when it’s rising sharply in the morning; don’t chase high when it’s rising sharply in the afternoon and buy the next day when it’s falling sharply in the afternoon; don’t sell when it’s falling sharply in the morning, and take a break if it’s not rising or falling; be stuck and cover your position to protect your capital. Excessive greed is not advisable.
Risk awareness: A calm lake with high waves may cause big waves later; a correction is inevitable after a big rise, and the K-line has been in a triangle for many days. The upward trend depends on support, and the downward trend depends on resistance. It is a taboo to operate with a full position, and it is not feasible to act alone; in the face of impermanence, we must know when to stop and seize the opportunity to enter and exit.
Speculating in cryptocurrencies is actually speculating in your mentality. Greed and fear are your biggest enemies. You need to be cautious when chasing ups and downs, and only when you remain calm can you be at ease.
In addition to the formulas, I have also compiled several super practical trading methods, whether you are a novice or an experienced player, you can benefit from them.
Oscillating order method: Most of the market is in an oscillating pattern, and using the high-selling and low-buying between boxes is the basis for stable profit.
And the box theory, combine technical indicators and graphics to find the resistance and support. Follow the short-term buying and selling principles, and avoid greed.
Change and breakthrough order method*: After a long period of consolidation, the market will choose a direction, and chasing after the change can quickly make a profit. However, it requires accurate change of market
Unilateral trend trading method*: After the market breaks through the market situation, a unilateral trend will form. Trading in line with the trend is the key to profit. When placing orders during a pullback or rebound, refer to indicators such as K-line, moving average, BOLL, trend line, etc., and use them skillfully to be able to handle it with ease.
Resistance and support trading method*: When the market encounters key resistance and support levels, it will often be blocked or supported. At this time, entering an order is a common strategy.
Use trend lines, moving averages, Bollinger Bands, parabolic indicators, etc. to accurately determine resistance and support levels.
Rebound order method: after a sharp rise or fall, there will be a short-term pullback or rebound, seize the opportunity to easily make a profit. It is mainly based on the K-line pattern judgment. A good sense of the market can help you accurately grasp the high and low points.
Time period trading method: The morning and afternoon trading sessions have small fluctuations, which are suitable for conservative investors. Although it takes a long time to make a profit, the advantage is that the market is easy to grasp; the evening and early morning trading sessions have large fluctuations, which are suitable for aggressive investors. They can make profits quickly but are difficult and require strict technical and judgment abilities.
Follow the official account [Yuanyuan Jucai] and you will definitely gain something. Helping others is like helping yourself. I hope that no matter how the market changes, we can always go on together and still be able to laugh at the cryptocurrency world ten years later.
Trend follower secrets: lock in a ten-fold opportunity in ten years
The wealth code that focuses on long-term trends:
Halving cycle layout: 180 days before the Bitcoin production is halved, allocate BTC, BCH and other halving coins in advance and hold them until 30 days after the halving.
The law of leading currency compensatory rise: when the market leading currency rises by 200%, priority will be given to second-tier currencies in the same sector whose rise is less than 50%.
Triple technical verification: weekly MACD golden cross + daily line breakthrough of the box + hourly line large volume positive enveloping negative, forming a golden buying point.
Analysis of institutional holdings: Glassnode data shows that when large addresses continue to increase their holdings, coupled with a surge in on-chain transaction volume, it is a start signal.
Bear market fixed investment strategy: invest 10% of the principal every month, choose blue-chip coins such as BTC and ETH, and the return will exceed 300% after 12 consecutive months of fixed investment.
Risk warning: The above strategies need to be adjusted in combination with real-time market conditions. It is recommended that novices use a simulated trading to verify first. The loss of a single transaction should not exceed 2% of the total funds. The market is risky and investment should be cautious.
Welcome to follow the public account (Bit Ruiqian), where you can watch real trading, learn and communicate, and understand the direction and strategy of the market. No matter what style the market is, you can know it in advance so that you have time to master it better! ! !
1. Introduction
At this stage, you may have acquired knowledge of numerous chart patterns such as the double bottom pattern, ascending triangle structure, and inverse head and shoulders pattern, as shown in the figure below.
However, as you know, not all chart patterns work consistently. In this case, what should you do when these chart patterns fail to work as expected? See the chart below.
When the scope of involvement is further expanded, how will you take action? As shown in the figure below.
What kind of commodities do you plan to trade in the market at that time? See the figure below.
It is at this time that the triple bottom pattern shows its unique application value, as shown in the figure below.
The Triple Bottom pattern is one of the more uncommon chart formations in the current market, however, it remains an essential tool in a trader’s toolbox during times of market volatility.
In this guide, you will learn the following:
(1) A detailed guide to the workings of the Triple Bottoms pattern;
(2) How to avoid misjudging the triple bottom pattern (and the appropriate actions to take in this situation);
(3) Correct trading and analysis methods for triple bottom patterns;
(4) A step-by-step procedure on how to accurately define and execute a triple bottom trade.
2. The truth about what a triple bottom is and how it works
The Triple Bottom pattern is like a talented superstar who has stepped onto the market stage with his unique talent. It starts with the neckline, which is the support of the entire structure, as shown in the figure below.
Then, in a dizzyingly complex play of market complexity, three bottoms emerged one after another, each playing an integral role in this fascinating formation, as shown in the figure below.
Like a carefully choreographed synchronized dance, the pattern is indeed easy to spot because it is eye-catching, grabs the spotlight, and sets the stage for potential trading opportunities.
Now that you know what the pattern looks like, how does the Triple Bottom pattern form? If you are wondering, you are heading in the right direction because understanding the “why” something happens is often more critical than just knowing the “what” of it.
In this guide, we will explore the following three reasons why a triple bottom pattern forms.
(1) Market indecision
Think of the market as a fickle entity that is indecisive in its decision-making process, similar to the friend who can't decide where to go for dinner or which movie to watch. Then, the triple bottom pattern emerges, which is derived from the unstable state caused by the market's indecision, as shown in the figure below.
Did you notice how the price range in the example above keeps expanding, as if the market is saying: I can't decide which path to take? It's like a moment of suspended confusion, yet it provides traders like us with an opportunity to take advantage of the impending market resolution. So, essentially what we are discussing is that the Triple Bottom pattern is a direct product of market indecision.
(2) Development takes time
This pattern tends to develop at its own pace, however, this only makes it a slow-cooked delicacy that is worth the wait, just like watching a suspenseful movie where the well-informed viewer can foresee the climax. The market tests your patience and teases you with its subtle fluctuations, and for those who are willing to wait and observe carefully, the triple bottom pattern presents an opportunity that could bring lucrative profits. So stay calm and let this pattern reveal its tempting trading opportunities in due course. In fact, to further illustrate this principle, you can effectively use the triple bottom pattern when the following situations occur.
(3) You missed the double bottom pattern
If you missed the double bottom pattern, as shown in the image below.
You don’t have to dwell on this, as the Triple Bottom pattern can turn the tide right now and give you a chance to participate in the market again, as shown in the chart below.
It's like accidentally discovering a hidden treasure chest in despair, when you thought all hope was lost, so this mode provides an extra opportunity to enter.
Now, I understand that trading a double bottom pattern may be more appealing, but it is up to you to take advantage of the opportunity. For cautious traders looking for more confirmation, it is worth keeping an eye on the triple bottom pattern, a pattern that can bring salvation, excitement and huge profits, adding value to your trading charts. Now that you know what a triple bottom pattern looks like and how it works, I will explain to you when you should not trade this pattern, remembering that all trading patterns have their own advantages and limitations.
3. The Biggest Mistake When Trading Triple Bottoms: Avoid These Traps
(1) Mistake 1: Trading in the middle of a Triple Bottom pattern
First, trading within a price range is like trying to fit into a pair of jeans that are too tight. It is inevitable that you will feel uncomfortable. Keep in mind that triple bottom patterns usually form when the market is indecisive, and the market behaves like a child in a candy store with many tempting choices. Therefore, resist the urge to trade in and out of the pattern as it develops, and instead, wait patiently for the market to make a clear decision.
To summarize, trading in the middle stages of a pattern’s development should be avoided, as shown in the chart below.
Focus on value areas, also known as support and resistance levels, as shown in the chart below.
(2) Mistake 2: Blindly trading highs and lows
What does this mean? Shouldn't we avoid trading not only the middle of a triple bottom pattern, but also the highs and lows? You should know that the triple bottom pattern is famous for its frequent false breakouts, as shown in the figure below.
This is because of the inherent nature of the range market, they expand and contract, triple bottoms may even evolve into quadruple bottoms, it is like a prankster lurking in the shadows, ready to jump out and give you a scare. Therefore, do not blindly follow the peaks and troughs of the price like an ignorant squirrel, instead, you should wait for the market to confirm before entering the trade, which means you should wait patiently until the actual breakout after the third bottom occurs, as shown in the figure below.
And the entry into this range should be confirmed when the price closes, which serves as an effective confirmation of the formation of the third bottom, as shown in the figure below.
Therefore, the fact that the price has reached higher highs and lower lows does not constitute a good reason to enter a trade immediately, instead you should remain alert and wait for the necessary additional confirmation signals.
(3) Mistake 3: Using the double bottom pattern to determine market direction
Now, let us clarify a point to correct a common misconception, although the Triple Bottom pattern may play a key role in the market, it does not have the oracle ability to predict the market direction, which means that even if you identify a Triple Bottom pattern, the market is not necessarily obliged to break out to higher levels, the following scenario can also happen, as shown in the figure below.
This is similar to expecting to predict the next day's lottery numbers through a crystal ball, which is almost impossible. Therefore, one should not rely solely on the triple bottom pattern to determine the subsequent trend of the market. Other relevant factors should be comprehensively analyzed, and the triple bottom pattern should be regarded as one of the auxiliary tools rather than the only decision-making indicator.
(4) Mistake 4: Over-reliance on “textbook” triple bottoms
When discussing the Triple Bottom pattern, don’t get too hung up on the traditional textbook definition, as shown in the chart below.
This pattern is like a chameleon, changing its form in many ways, bringing new surprises with every turn, which shows that there are many valid triple bottom variations, as you have observed before and shown in the figure below.
And this one, as shown below.
So let go of your rigid expectations of patterns and instead appreciate the beauty of their diversity, the key being those “bottoms” you can identify on the chart.
Now, you may be thinking: I know how to identify this pattern and what actions to avoid when trading it, so how can I trade it? If this is your question, now is the time to show your trading skills because I will reveal the three key market movements you should pay attention to when trading the Triple Bottom pattern.
4. Ideal strategy for successful trading of triple bottom patterns
(1) Make sure the triple bottom is in an existing uptrend
By ensuring that your trading moves are coordinated with the current market uptrend, as shown in the chart below.
You are increasing your odds of a successful trade and are following the beat of the market, watching this uptrend like an experienced dancer who has found the perfect partner, ready to gracefully twirl and immerse herself in the Triple Bottom pattern as it unfolds.
(2) Look for false breakouts or accumulation
When you observe a false breakout at the third bottom, as shown in the chart below.
It’s like noticing your partner pretending to be tired on the dance floor, but then springing back to life with flair, a sign that the pattern is poised to take over the market’s spotlight, as shown in the chart below.
From another perspective, if you encounter the following situation: failed to grasp the entry time of the double bottom pattern, missed the false breakout trading opportunity of the triple bottom pattern, don’t worry, because there are still opportunities waiting for you. This is because if you observe the price accumulation phenomenon at the high point, as shown in the figure below.
This is like what you might see in an electric elevator moments before it starts moving, and that’s because this phenomenon suggests that the Triple Bottom pattern is preparing for a potentially energetic breakout, as shown in the chart below.
So, keep an eye on these cutting-edge market moves and be ready to put your trading abilities to work in the market arena. At this stage, you have mastered all the key elements necessary to successfully trade the Triple Bottom pattern, but as you well know, the effectiveness of these tools at your disposal depends on how you use them, and if you have been trading similar Double Bottom patterns for a long time, then you are already well prepared. However, if you are looking for a concise and clear guide to understand how to use the Triple Bottom pattern for market discovery, trading and trade management, then continue reading the rest of this guide.
5. Mastering the Triple Bottom: A Trading Strategy That Lets You Dance in Profits
(1) Step 1: First identify the upward trend within the daily time frame
Think of it as discovering the ideal rhythm that sets the stage for an engaging performance, looking for those rising highs and lows that signal a strong uptrend, as shown in the chart below.
Once you identify this uptrend, move on to the next stage and closely follow the market beat moment.
(2) Step 2: Identify a potential triple bottom on the 4-hour timeframe
At this point, shift your focus to the 4-hour chart, where a potential triple bottom pattern will appear vividly. Liken this process to a choreography, each step carries a specific goal. Identify the triple bottom pattern, which is composed of three different bottoms connected by necklines, as shown in the figure below.
It's like watching a group of dancers move in sync, weaving an eye-catching pattern across the dance floor. Once you recognize this masterpiece of a triple bottom pattern, you should start preparing for a precise trade entry.
(3) Step 3: Trade the false bottom at 3 locations
This is similar to performing a stunning pirouette or quick change of direction on a dance floor, to the admiration of all who watch, when the market briefly breaks below the third bottom and then quickly recovers, as shown in the chart below.
This is a sign that the pattern is ready to take center stage, so like an experienced dancer, join the trade and show your trading skills to get ahead of the market, as shown in the chart below.
Timing is critical, wait patiently for that false breakout to occur, and take quick action when the opportunity arises.
(4) Step 4: Reduce the size of the accumulation of bulges on the neckline
Now is the time to improve your trading performance and you may be wondering: how? By gradually reducing the size of your trades near the neckline, as shown in the chart below.
Think of it as a grand escalation in choreography, where energy surges to new peaks, and when price decisively crosses the neckline, it signals that the triple bottom pattern is about to unleash its full market potential. What should you do in this situation? In simple terms, you should increase the size of your position, expanding on your initial trade to maximize your profit potential, as shown in the chart below.
Like a crescendo in a piece of music, the key point is that this breakout provides investors with an opportunity to ride on a winning trend.
(5) Step 5: Trailing stop loss using 20-period moving average
Now that you are in this area, how do you manage it? In this case, I recommend using a 20-period moving average as a trailing stop, as shown in the chart below.
This indicator is like a trustworthy dance partner, ensuring your safety on the trading stage. As the price changes in your favor, use this dynamic indicator to adjust your stop loss position to protect your profits, as shown in the figure below.
Here are some other points you should know, you always have the right to choose between stage 3 and stage 4. For traders who prefer to take higher risks, you can choose to trade in both stages 3 and 4; if you are a more conservative trader, you can choose to enter the market when the price breaks through the neckline (i.e. stage 4); if your trading style is somewhere in between, you can consider taking action in stage 3, not scaling back your position, but scaling sideways in stage 4.
So put on your trading boots, practice these steps, and let this simple triple bottom strategy be your ticket to trading success.
6. Conclusion
The following is an overview of the key points of this guide:
(1) The triple bottom pattern provides a second entry opportunity for traders who fail to seize the double bottom opportunity.
(2) It consists of a neckline and three distinct bottoms and is usually formed during periods of market indecision and takes time to develop.
(3) When trading triple bottoms, avoid common mistakes such as trading within a price range and relying too much on textbook patterns.
(4) The best way to trade is to stay in line with the existing uptrend in the market and watch for false breakouts at lows or price accumulation at highs.
(5) A simple trading strategy involves identifying an uptrend, spotting triple bottom patterns, trading false breakouts, adjusting position size on breakouts, and using a 50-period moving average as a trailing stop.
Simple and practical cryptocurrency trading tips to help you make steady profits
1. Invest in batches and times: Suppose you have 10,000 yuan, divide it into five parts, and only use 2,000 yuan for each transaction.
2. Test investment: first use 2,000 yuan to buy a coin to test the water.
3. Add more positions if the price drops: If the currency price drops by 10%, add another 2,000 yuan to the position.
4. Take profit when the price goes up: If the price of the currency goes up by 10%, sell part of it in time to lock in the profit.
5. Repeat the cycle: keep repeating buying and selling until the funds are used up or the coins are sold out.
Strategic advantage: The advantage of this strategy is that you can remain calm even if the price of the currency drops. By investing in batches, you avoid the risk of a one-time investment. Even if the price of the currency drops by half, you only gradually increase your position. And every time you sell, you can lock in a 10% profit. For example, if you have 100,000 yuan and invest 20,000 yuan each time, you can earn 2,000 yuan each time.
Strong recovery, assets doubled! Follow the rainy day, plan ahead, and easily get big profits
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