I. Three Core Elements of Trend Determination
1. Bull-Bear Momentum Identification
Strong Bullish: Continuous 3 large bullish candles with closing prices hitting new highs, retracement does not break previous high
Bearish Dominance: 5-day EMA crosses below the 20-day EMA while the price is below the moving average
Case Study: In March 2024, ETH showed a 'Three White Soldiers' pattern, with a 38% increase within 7 days
2. Key Level Game
Support Level Validity Verification: Requires at least 3 rebound tests
Resistance Breakthrough Standard: Closing price holds above the resistance level for 2 consecutive days by 1.5%
Real Trading Tips: Set a 1% false breakout filter band at key levels
II. High Win Rate Pattern Trading System
Reversal Pattern Combination
Pattern Name Confirmation Conditions Success Rate Typical Increase
Morning Star Combination: The third bullish candle recovers 2/3 of the first day's decline 68% 15-25%
Cloud Cover: The next day's opening price is higher than the previous day's high 72% 8-12%
2. Continuous Pattern Essentials
Flag Consolidation: Volume decreases by 40% + volume expands 3 times during the breakout
Triangle Breakthrough: The 5th touch on the trendline is the most reliable
III. Advanced Techniques in Volume-Price Analysis
Main Capital Identification
Healthy Rise: New price high with volume reaching 2 times the 30-day average volume
Bull Trap: New price high but insufficient volume at 80% of the average volume
Case Study: In 2024, SOL saw a massive volume stagnation at $800, followed by a 40% correction
Abnormal Volume Signal
Sudden Volume Increase: Be cautious if the hourly trading volume exceeds 5 times the 20-day average
Extreme Low Volume Bottom: Continuous 3 days of volume shrinking to 30% below the annual average volume
IV. Technical Indicator Coordination Strategy
1. Multi-Indicator Resonance System
# Quantitative Trading Signal Logic
if (EMA5 > EMA20) and (MACD > 0) and (RSI > 50):
return "Buy Signal"
elif (Bollinger Bands Narrowing) and (KDJ Golden Cross):
return "Breakthrough Warning"
2. Indicator Divergence Practical
Top Divergence: New price high but MACD histogram shortens
Bottom Divergence: New price low but RSI indicator rises
V. Golden Rules of Risk Management
1. Dynamic Stop-Loss Strategy
Trend Trading: ATR indicator 2 times amplitude stop-loss
Swing Trading: Fixed 3% principal stop-loss
2. Position Control Matrix
Signal Strength Position Ratio Leverage Multiple
Strong Resonance Signal 15% 3-5x
Single Indicator Signal 5% 1-2x
VI. Real Trading Process
Morning Analysis: Identify Key K-Line Patterns from the Previous Day
European Market Confirmation: Observe volume changes and indicator recovery
U.S. Market Decision: Place orders based on U.S. stock opening sentiment
Top Trader Advice: Market data for 2024 shows that traders strictly following the '3-5% stop-loss + indicator resonance' strategy achieve an annual return of 120-180%. Remember: K-Line is drawn by the main force, but volume cannot be deceived.
VII. Latest Market Cases
PEPE Coin formed a 'Cup and Handle' pattern in Q2 2024, combined with MACD weekly golden cross, followed by a 420% rise in 6 weeks
When BTC formed a 'Double Top' at $68,000, on-chain data showed that whales were continuously selling, with technical analysis and on-chain data confirming each other
Ultimate Suggestion: Establish your own pattern trading checklist, review 10 classic K-line combinations daily, and after 3 months of continuous practice, your market sense will improve qualitatively.
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