#以太坊十周年 #币安HODLer空投TREE I was born in 1990, starting from a loss of 2 million to now! With a capital of 300,000, I earned 50 million. I can say that I have been trading stocks for 10 years, almost capturing all the increases in my positions! Now I support my family through stock trading. Every month I withdraw 100,000 from the stock market, feeling no impact at all, living leisurely and freely, without scheming or intrigue, living the life I want. I also played in the stock market for over a decade before entering the cryptocurrency space, becoming a small player. Initially, I experienced despair, and it was this process of despair that motivated me to persevere. In times of failure, I learned that you must identify the reasons for your failures and strive to learn; learning is the best way to navigate through market lows.
Today I will share the application of K-line moving average. We all know the importance of K-lines in the stock market, but in the cryptocurrency space, these K-line theories only apply to a part, not all indicator analyses are useful in the crypto world. Although the accuracy of K-line techniques is not one hundred percent, and many K-line knowledge might seem less useful after learning, in fact, according to the experiences of many experts, K-line techniques play a key role in the long-term analysis of cryptocurrency prices. No matter which direction the price will go, it will be reflected in the trading. We can use these techniques to understand the trends of cryptocurrency prices. K-line talks about high probability, guiding you to a bright path when you are confused.
Without further ado, let's get to the point. Today, we will mainly discuss basic indicator strategies: 1. Moving average usage and settings 2. RSI indicator usage 3. Value investment
How to use moving averages to judge trends
First, let’s learn how to set indicators. Because Huobi has some updates, if you can't find them, you can directly use the mouse to click on the lines. You can see these lines; just click on them to change. After clicking, you can change it directly here. The moving averages we will use are: 5-day line, 30-day moving average, 60-day line, and 120-day line. If you feel it’s not useful, you can even change the five-day line to a four-day line for a more agile market response.
Short-term moving average indicator: five-day line strategy.
The commonly used short-term indicator is the five-day line. What is the five-day line? The five-day line is the sum of the closing prices over five days divided by five. Generally, the system is set to the weekly line, which is essentially the average price over a week, but a week's time is too long and reflects relatively slowly. Of course, some experts use the four-day line, etc., which can be visually displayed through settings. The five-day line is the most practical for short-term judgment.
The five-day line represents the average holding price over five days, indicating the buying and selling signals within those five days, reflecting the range people can bear, and the average holding cost. The use of moving averages is similar: in a bull market, when the price retraces to the five-day line, it is time to increase positions (if it quickly breaks through, one should observe). In a bear market, when the price falls below the five-day line, one must sell quickly; as long as it does not break the five-day line, there should be no major issues. During a consolidation phase, one can look at the 1-hour and 4-hour lines; this is a short-term usage.
This set of theories requires exploration by everyone, as very few people will tell you. You will encounter many problems in practice, which need to be verified multiple times. Undoubtedly, the five-day line strategy is very useful in practice and is one of the indicators that short-term experts must rely on.
Why use the five-day line? Because there is a saying that in the crypto world, one day is equivalent to one year in the human world; the market reacts very quickly. If you use the conventional seven-day line, it will be relatively slow and cannot keep up with market changes. We all know that the price fluctuations in the crypto world are unlimited, and trading can happen twenty-four hours a day.
If the five-day line is used as the standard for judgment, then when the price reaches the five-day line, it will form a support level. If it sells, it will break below the five-day line, and one must wait until it returns to the cost price, which will also form a support level.
