Seven years of trading cryptocurrencies, profits all rely on understanding and discipline. In the first three years, I lost over 100, but in the following years, I earned back several hundred. Every penny comes with blood and tears of lessons! This market always repeats the same secret: 90% of retail investors trade based on news, 9% of smart people watch the movements of big players, while 1% of aggressive players dissect the market's DNA using moving averages.
Step 1: Verify the moving averages. Treat the daily moving average as three distinct old Chinese doctors - the 5-day line is the head of the emergency department, the 30-day line is an expert in internal medicine, and the 60-day line sits in a special consultation room like an old master. When the head of the emergency department suddenly straightens up and rushes to check the pulse of the two old seniors (the 5-day line crosses above the 30/60-day lines), this is a signal that the market is preparing to enter ICU for rescue. Conversely, if you find the head of the emergency department slipping and rolling off the master's chair in the consultation room (the 5-day line crosses below the 30/60-day lines), don't hesitate, immediately adjust your position.
Step 2: Establish a trading system to prevent impulsive decisions.
Now, please stick a note on your trading interface and write in bold marker: When moving averages clash, ordinary people retreat. When the 5-day line and the 30-day line twist and tangle like a braid, entering the market at this time is equivalent to rolling dice to guess odd or even. A true hunter will only pull the trigger when the three lines march in the same direction.
Here’s a counterintuitive cold fact: In the cryptocurrency world where volatility is commonplace, the strategy of using daily moving averages is more deadly the simpler it is. Just like true martial arts masters never need to display fifty different starting moves, a breakthrough of the 5-day line is the signal to draw the sword, while a turn of the 60-day line is the moment to sheath it.
Step 3: Weld discipline to the operating table.
I have seen too many people write their trading plans on napkins, only to tear them up in the middle of the night out of fear from a sudden market spike. The cruelest yet kindest aspect of the daily moving average strategy is that it forces you to become an emotionless signal execution machine. #BTC☀