I. High selling and low buying in a volatile market
In a volatile market, prices often fluctuate between support and resistance levels, providing excellent opportunities for high selling and low buying. When mainstream cryptocurrencies like BTC/ETH reach support levels (e.g., BTC 98,000 U), consider opening a long position; when they touch resistance levels (e.g., BTC 102,000 U), a short position can be opened to easily capture 3% of the volatility profit.
Key operation points:
Leverage control: To reduce risk, it is recommended to keep the leverage ratio at ≤5 times, ensuring that even if there is a certain reverse fluctuation in price, there is enough capital to bear the risk.
Position management: Each time a position is opened, it should not be too heavy. Reasonable allocation can be made based on one's capital and risk tolerance, generally recommended not to exceed 20% of total capital.
Stop loss and take profit: When opening a long position, the stop loss can be set near the support level, such as 97,000 U, with the take profit set at the resistance level; when opening a short position, the stop loss can be set above the resistance level, and the take profit at the support level. Strictly executing discipline avoids greed and fear affecting decisions.
II. Trend following method
When the daily moving averages of digital currencies show a bullish arrangement (5-day moving average above the 10-day moving average, 10-day moving average above the 20-day moving average, etc.), it indicates that the market is in an upward trend. At this time, one can use 5 times leverage to go long, amplifying profits. Taking ETH as an example, when the price breaks through the key resistance level of 2600 U, and the MACD indicator shows a golden cross, this is a strong bullish signal, and one can enter decisively.
Key operation points:
Trend confirmation: In addition to the bullish arrangement of moving averages and MACD golden cross, one can also combine indicators like trading volume and Bollinger Bands for comprehensive judgment to ensure the effectiveness of the trend.
Stop loss setting: To prevent losses from trend reversals, the stop loss can be placed below recent lows, such as 2550 U, which can control risk while leaving some room for price fluctuations.
Take profit target: Set a reasonable take profit target based on previous resistance levels or technical analysis, such as 2800 U. After reaching the target, take profits in a timely manner to lock in gains.
III. Event-driven lightning strikes
Major news (such as Federal Reserve interest rate hikes, policy changes in various countries, etc.) often has a significant impact on the digital currency market. Positioning before news announcements can seize opportunities. It is recommended to open a counter position in advance based on market expectations before the news is announced (for example, if the market expects interest rate hikes to be negative, one can appropriately open a long position), using 3 times leverage and quickly closing positions within 15 minutes after the news lands, for a quick in-and-out.
Key operation points:
News analysis: Pay attention to market hotspots and important events in advance, analyze the impact of news on digital currencies, and determine whether it is positive or negative, as well as the possible market reaction.
Position control: Due to high uncertainty in news events, leverage should not be too high, 3 times is appropriate, and positions should also be kept at a lower level to avoid significant losses due to news not meeting expectations.
Timely closing: After the news lands, market sentiment may change rapidly, and price fluctuations can be severe. It is essential to close positions within 15 minutes based on market reactions and not to fight a losing battle.
The opportunity has arrived, and profits are soaring! Follow Cheng Ge to seize the moment; doubling wealth is not a dream.
Continuous attention: SPK, C
