Have you ever seen a liquidation text at three in the morning? I still have that text from 2019 in my phone — 500,000 principal wiped out overnight. At that time, I stood on the balcony staring at the K-line chart; even the wind felt cold. But now, I can use the same set of indicators to buy two apartments in Qianhai, Shenzhen, with cash. The crypto market is not a casino; it’s a slaughterhouse hiding an ATM, and these three indicators are the passwords to unlock the ATM.
First, trend anchor point indicator (SAR): my lifeline.
Newbies always ask me: 'How much should I stop-loss? How much should I take profit?' In fact, the SAR has already drawn the answer on the chart.
When the coin price steadily stands above the SAR curve, each point is a footprint of the bulls, and holding is the right move. Last year, SOL surged from $20 to $120; this curve is like a seatbelt — as long as it doesn’t break, hold on tightly — it’s not luck, it’s the law of mathematics protecting the market. But once the coin price drops below the SAR, even if it’s just a 1% drop, you must exit immediately. Three days before the LUNA crash in 2022, the SAR gave an exit signal; how many people became bag holders because of hesitation?
Don't be fooled by the 'fool's indicator'; it's very clever. When the curve angle exceeds 45 degrees, the trend is faster than a high-speed train. During last year's 45-degree rise of ETH, those who followed SAR for swings made a fortune; but if the angle is as gentle as climbing a slope and the sideways movement lasts more than three months, a sudden drop might be a reversal signal — this is the main force reshuffling, and only by keeping a close eye can you catch the big fish.
Second, volatility radar (BOLL): the withdrawal password during sideways movement.
Is KDJ pointing the way like a drunkard in a volatile market? Just look at the mouth of the Bollinger Bands to know the direction.
When the Bollinger Bands narrow to a line, it’s like the calm before a storm. In 2023, Bitcoin traded sideways at $30,000 for two weeks, with the bandwidth shrinking to a historical low. I shouted in the community, 'Prepare your bullets,' and three days later it skyrocketed to $42,000 — this kind of explosion after a narrow range occurs three to five times a year; catching one is enough for six months of expenses.
The actions at the opening are more crucial: when the opening at a high level suddenly narrows, it’s like a balloon losing air; run quickly and don’t look back. When the opening at a low level explodes, that’s the money banging on the door — enter boldly. Last year when AVAX dropped to $8, the Bollinger Bands suddenly widened; I advised my followers to build positions in batches, and a month later it rose to $24. This kind of signal is more reliable than any analyst's call.
Third, the capital electrocardiogram (volume): the main force cannot hide its fox tail.
Movements without volume are paper tigers. I repeat this every day in the live stream because too many people are fooled by 'volume-less rises' into getting on the bus.
Volume at high levels is the touchstone. On the day Bitcoin surged to $69,000, I watched the volume chart with a cold smile — without volume, it's a false high, and sure enough, it plummeted three days later. But if there’s a surge in volume at low levels, it’s different. Last November, when ETH was at $1,500, the volume suddenly tripled; I immediately increased my position, and it later rose to $2,800. This is the sound of funds entering the market.
The most deadly is volume-price divergence. A certain altcoin surged 50% last month, but the trading volume decreased day by day. I pointed out directly in the video: 'The main force is looking for bag holders,' and sure enough, a week later it fell back to its original state. Remember, money doesn’t lie; trading volume is the market's true voice.
It’s been five years, from the cold sweat of liquidation to now calmly sipping tea while looking at account numbers. These indicators are not a panacea, but they are definitely a shield and a spear. The crypto market reshuffles every day; if you don’t want to get washed out, you need to understand these market signals.
Pay attention to @沐舟说币 , tomorrow's live stream dissects 'Indicator Combo' — how to use three indicators together to avoid 80% of the pitfalls. Like and save this article, so you can refer to it next time you trade; you will come back to thank me.
