If your account funds are below 1 million, and you want to make short-term profits in the crypto market, there is a tried-and-true 'MACD trading method' that is simple and practical, allowing retail investors to easily get started. Don't worry about not being able to learn; I'm not a god, just someone who has mastered the method. Once learned, emphasize it in trading, and you may earn 3 to 10 more points daily.
Today, I will share a set of practical strategies from an old expert with an average win rate of 80%, which is rare in the crypto market. MACD trading method, essential for short-term swings, also applicable to contracts, with monthly profits reaching 30%-50%.
Market implications:
1. Double moving averages
Position: Bullish above the 0 axis, bearish below; crossing above or below the 0 axis determines the overall trend.
Crossing: Small cycle signals are numerous and should not be used alone.
2. Volume bars
Bull-bear dividing line: Above the 0 axis is bullish, below is bearish.
Bullish trend: Volume bars above the 0 axis increase in size, indicating an upward trend.
Bullish pullback: Volume bars above the 0 axis decrease in size, indicating an adjustment in the upward trend.
Bearish trend: Volume bars below the 0 axis increase in size, indicating a downward trend.
Bearish rebound: Volume bars below the 0 axis decrease in size, indicating an adjustment in the downward trend.
Comprehensive implications:
Balanced long and short: Moving averages surround the 0 axis, with scattered volume bars, indicating market fluctuations.
Divergence: Signal of momentum exhaustion, double line volume bars diverging at the same time is effective.
Trend continuation: Trend rises + volume bars above the 0 axis, or trend falls + volume bars below the 0 axis.
'MACD' 8 major entry points:
1. Chan's theory buy and sell points
First type: Bottom divergence + golden cross to buy, top divergence + death cross to sell.
Second type: Double lines first crossing the 0 axis, pull back to near the 0 axis, and buy on the first golden cross above the 0 axis.
2. Trend judgment trading method
Long-term trends determine the direction, and short-term entries. For example, if the weekly and daily charts are bullish, short if the daily chart pulls back, or wait for a weak pullback to go long according to the weekly chart.
3. Energy bar position trading method
Moving averages surround the 0 axis, with scattered volume bars; enter when prices break through.
4. Key position trading method
Key support and resistance levels.
K-line piercing signal.
Volume bars convert positive and negative to short/long.
5. Secondary red-green trading method
The first wave of upward volume bars is moderate; if they shrink without turning negative, they can continue to expand.
6. Buddha hand facing up
After the double line golden cross, it rises and pulls back to the vicinity of the 0 axis, with the DIF line turning upward.
7. Main rising wave trading method
MACD volume bars persistently rise above the 0 axis, with pullback volume bars shortening or expanding for a second entry.
8. Divergence + pattern trading method
MACD divergence + trend breakdown to judge turning points.
Sharing another set (mindless rolling strategy): 300 times in 3 months, earning 30 million. If you want to share in the crypto market, take a few minutes to finish reading, you'll benefit for a lifetime.
Adjusting positions:
Timing: Market conditions must meet rolling position criteria before entering.
Opening positions: Use technical analysis signals to find the right time to enter.
Adding positions: Gradually add positions as the market moves in the right direction.
Reducing positions: Reduce positions when reaching preset profit or when the market is not right.
Closing positions: Close all positions when reaching target price or when the market shows a clear reversal.
Rolling position insights:
Add positions after making money: If investments rise, costs decrease and risks are low, you can add positions at trend breakout points or during pullbacks.
Base position + T trading: Assets are divided into two parts, the base position remains unchanged, while the other part is traded during fluctuations to reduce costs and increase returns.
Risk management:
Control total position and fund allocation, ensure total investment does not exceed bearable risk, smart fund allocation, pay attention to market dynamics and technical indicators, flexibly adjust strategies, and timely stop-loss or adjust investment volume.
The risk of rolling strategy is not high, the key lies in leverage usage. For example, with a principal of 10,000 yuan and 10x leverage, using only 10% margin effectively means 1x leverage with a 2% stop-loss line, limiting losses. Liquidation occurs due to excessive leverage or heavy positions; reasonable leverage use and position control can make risks manageable.
How can small funds grow large? Compound interest effect. With limited funds, medium to long-term is more suitable, focusing on multiplying growth with each trade.
Position management:
Diversify risk, divide funds into three to four portions, and invest only one portion each time.
Use leverage moderately, no more than ten times for mainstream currencies, and no more than four times for small-cap coins.
Dynamic adjustment, supplement losses with equal funding, and appropriately withdraw profits when earned.
As funds grow to a certain level, gradually increase the amount traded each time, progressing step by step.
Have your own trading philosophy, form a trading system, overcome human weaknesses, let profits run, and cut losses. Trading in the crypto market is a contest of time and patience, not strategy. No matter how diligent a fisherman is, he won't go out to sea in a storm, but will safeguard his boat and wait for a sunny day.
