I am a full-time cryptocurrency trader, and for the past 10 years, I have adhered to ten golden rules of cryptocurrency trading. Reading them a hundred times is not too much; keep them in mind!
In the first three years of trading cryptocurrencies, I entered the market with 200,000 in capital, but ended up losing it to just 10,000. Relatives and friends advised me not to trade anymore, saying it was foolish, neglectful of family, and lacking ambition. I heard all sorts of harsh words, and at that time, I really almost gave up; I even looked down on myself.
But I just couldn't give up, I swore to my family that I would take one last gamble with this 10,000! Then I calmed down to study, unexpectedly, with this 10,000, I made 25.6 million in three years!
No bragging—when you truly find a method that suits you and strictly follow it, you will definitely turn things around!
Before discussing the techniques, I strictly adhere to the following six trading rules:
1. Bull markets don’t signal tops, and corrections don’t signal bottoms. Many things we think differ from reality, and there’s a saying that people tend to be overconfident, which can lead to suffering. This saying applies to the market as well; one always feels they have reached the right point, yet often it is still a consolidation phase, and one always thinks the upswing is about to end, resulting in getting off the train too early.
One criterion for judgment is that if the bullish trend in the fundamentals has not ended, you must hold on. If the market has entered an adjustment period, no matter how tempting the value is, do not bottom fish.#稳定币热潮
2. Even with a small position, you should diversify your holdings. The model is a system, and the content is about how to do it, rather than relying on feelings. Sometimes with a small position, one might feel indifferent, which leads to randomness and repeated mistakes. Risk control determines how long you can survive in this market.
3. When opportunities arise, whether it’s a choice between two or three coins, do not hesitate to buy them all, trust in luck, and do not put all your eggs in one basket, otherwise, you may encounter a situation where the ones you picked don’t move, while the ones you didn’t pick have already taken off.#白宫数字资产报告
4. For long-term positions, do not focus on emotions; primarily rely on fundamentals. The key point is to choose the right upward track, such as how many favorable factors there are: halving, ETF, interest rate cuts, upgrades, these are all clear positives. If the fundamentals are good, do not hesitate.
5. Fear of heights leads to a hard life. Being afraid of heights is not wrong; the mistake lies in not cutting losses decisively during downturns. When a reversal occurs, if you can't hold on after a slight increase, that's what is called operational deformation. Mindset is greater than technique. If you run at the first sign of a slight gain, then what is the purpose of coming to the market?
6. No one is perfect; learn to reconcile with yourself. Making mistakes is not scary; what’s scary is the endless self-blame after making a mistake, getting caught up in emotions, which is actually unnecessary. Focus on risk-reward ratio, strengthen execution capability; if you can’t afford to lose, you can’t afford to win. It’s just two sides of the same event!#特朗普马斯克分歧
These valuable pieces of advice are the crystallization of years of practical experience, worthy of our careful thought and strict adherence. I hope these suggestions can help everyone avoid detours in the market and steadily move towards success.
Today's focus is on a set of trading strategies that are both simple and highly effective—various indicator strategies.
This article introduces seven free technical indicators for analyzing the cryptocurrency market, helping traders and investors improve their trading skills and profitability. Original text: Best 7 Free Trading Indicators for Every Cryptocurrency Trader[1]
Hello everyone! Whether you are a trader or investor in the cryptocurrency market, understanding simple technical indicators can give you an advantage. These indicators act like a compass, pointing the direction of price without guessing.
Therefore, if you haven't used CM SuperGuppy, MACD, WaveTrend, EMA, and the other three technical indicators discussed in this article, now is the time to learn these tools and enhance your trading experience to help you win more trades. If you are ready, let’s get started!
7 Major Trading Indicators for Cryptocurrency Traders and Investors.
Here are the 7 major indicators I frequently use. I hope they can enhance your technical analysis knowledge and make you a profitable trader. Surprisingly, these indicators are available for free on Tradingview.
CM SuperGuppy Indicator
This is my favorite indicator for determining the ideal timing to invest in cryptocurrencies. In 2023, when Bitcoin was trading between $20,000 and $23,000, this indicator issued a buy signal, and it has remained bullish in the daily timeframe since then.
To use the CM SuperGuppy indicator, first visit Tradingview and search for 'CM SuperGuppy' in the indicators section. Then add it to the chart to analyze trading setups in the 4-hour and above timeframes.
CM SuperGuppy Indicator
As shown in the image above, the red line indicates a bearish market, gray indicates neutral, and green indicates bullish.
Currently, the BTC-USD currency pair still looks bullish in the daily timeframe. In fact, Bitcoin is in the buying zone. Therefore, in the coming days, we may see a significant price increase.
This is because the last time Bitcoin showed a similar signal, its price soared from $43,000 to $74,300. However, I cannot determine if this signal will reoccur.
However, this indicator shows bearish signals on the 4-hour chart. Please refer to the example below. Fortunately, Bitcoin has broken through the resistance zone of EMA 200 on the 4-hour chart.
4-hour CM SuperGuppy Indicator
CM SuperGuppy is a simple and effective indicator that I often use to make investment decisions.
MACD (Moving Average Convergence Divergence)
MACD is a momentum indicator that combines two moving averages to show their relationship, along with red and green histograms representing buy and sell signals. Please refer to the example below.
MACD Indicator
Most traders rely on bullish and bearish crosses that appear on the MACD to trade, or use it to identify bearish and bullish divergences to analyze trading setups.
However, sometimes MACD can also issue false signals, especially during consolidation phases. Therefore, it is always best to combine MACD with EMA 200 to analyze trading setups in the 4-hour and above timeframes. Please refer to the screenshot above.
Recently, after a bearish cross appeared on the MACD at the 200-day moving average, Bitcoin encountered a sell-off.
RSI (Relative Strength Index)
The Relative Strength Index measures recent price movements to determine if an asset is overbought or oversold.
Usually, its range is between 0 and 100, but there are three points of concern when using RSI: oversold point, overbought point, and neutral point.
Interestingly, when the RSI value is below 30, the asset is considered to be in the oversold zone, but when the RSI value is above 70, the asset is considered to be in the overbought zone. Additionally, the middle line represents the neutral point of 50.
RSI Indicator
However, depending on market conditions, some assets may remain in the overbought or oversold zones for a long time. Please refer to the example above. Ideally, do not use RSI as the sole indicator. Instead, combining RSI with EMA or Bollinger Bands will yield better results.
Bollinger Bands
Bollinger Bands consist of three lines: the middle line is the 20-day Simple Moving Average (SMA), and the upper and lower lines represent the Bollinger Bands, as shown in the image below.
Most of the time, I use Bollinger Bands to identify the market consolidation phase. But other traders may have different uses. For instance, a wider range indicates greater volatility, while a narrower range indicates less volatility.
Therefore, some traders go long when there is high volatility at the upper band of Bollinger Bands and sell when there is high volatility at the lower band. However, I prefer to combine Bollinger Bands with MACD and EMA-200. Please refer to the example below.
Bollinger Bands, EMA-200, and MACD combination!
BB + MACD Indicator
EMA (Exponential Moving Average)
This is my favorite short-term, medium-term, and long-term market trading and analysis indicators. I often use EMA 20, 100, and 200 to analyze any currency pair; these EMAs provide data from different ranges.
EMA Indicator
Interestingly, EMA is one of the simplest and most effective indicators, yet many novice traders overlook it in favor of other complex indicators.
Volume Profile
This is a simple indicator that helps us identify areas of high supply and demand based on the selected timeframe.
Volume Profile Indicator
LazyBear (WaveTrend with Crosses)
This is a free indicator on Tradingview that issues buy and sell signals based on cross stars. You can search for 'WaveTrend with Crosses' in the indicators section and ensure to select the indicator from LazyBear.
This indicator requires little configuration but allows adjustments for color and other basic settings. Please refer to the screenshot below.
Wave Trend Indicator with Cross Star
To improve the effectiveness of this indicator, it can be combined with EMA 20 in the 4-hour and 1-hour timeframes.
If an asset falls into the oversold zone but closes above EMA 20, buy. Similarly, when the indicator shows a red dot in the overbought zone and the price closes below EMA 20, sell.
Finally, like other indicators, WaveTrend can sometimes produce false signals. Therefore, please use it on higher time frames (4 hours and above).
Conclusion
It must be understood that no trading strategy or indicator can have a 100% win rate. Therefore, practice your strategies using only a few indicators, not exceeding three, to avoid conflicting signals.
Moreover, using too many indicators on the chart can lead to information paralysis. Therefore, when analyzing the selected currency pair, keep the chart clean and clear.
The above are ten years of trading insights from cryptocurrency trading, having experienced many ups and downs. These are heartfelt words of great enlightenment, hoping to be useful to everyone. Produced by Yan'an, it must be a fine product. There are beauties in the crypto world, independent and unique, with a path for the soul and skills for managing currency!
No matter how diligent a fisherman is, he will not go out to sea to fish during stormy weather; instead, he will carefully protect his boat. This season will eventually pass, and a sunny day will come! Follow me, and I will teach you to fish and how to fish. The doors of the cryptocurrency world are always open. Only by going with the trend can one have a smooth life. Save this and keep it in mind!
