Five years ago, one early morning, I was awakened by the red alarm of the exchange. In just three hours, all 6 million assets in my account were liquidated, leaving nothing. I watched the constantly fluctuating negative numbers on the computer screen, feeling like I was nailed to the cross of reality!
In the end, I realized that the crypto world is not a casino, but a battlefield. I borrowed 200,000 in capital from friends, constantly summarizing failed cases, learning various trading techniques, strategies, and market analysis, and developed a trading method with a success rate of 90%. It took me 90 days to roll my funds to over 20 million, which was truly not easy!
The market is always changing, but the rules do not. Your only goal is: not to be washed out in this wave of elimination. If you feel confused, consider saving this article as a starting point for your trading journey. It's not about getting rich quickly, but about staying in the game.
Without further ado, here are 8 iron rules; understanding them means making money!
1. During a market crash, if your coin only slightly declines, it indicates that there are operators protecting the market, preventing it from dropping. Such coins can be held with peace of mind; future rewards are certain.
2. For beginners trading coins, there is a simple and direct method: for short-term, look at the 5-day line; as long as the coin price is above the 5-day line, hold it; once it falls below, sell it. For medium-term, look at the 20-day line; if it is above the 20-day line, hold it; if it falls below, exit. The best method is the one that suits you, and the key is to persist in execution.
3. If the main upward wave of the coin price has formed and there is no significant volume increase, then buy decisively. Continue to hold during volume increases, and hold even during volume decreases if the trend is not broken; if there is a volume decrease and it breaks the trend, quickly reduce your position. If after a short-term buy, the price hasn’t moved in three days, sell if possible. If the price drops after buying, cut losses unconditionally at 5%.
4. If a coin has dropped 50% from a high position and has fallen for 8 consecutive days, it indicates that it has entered an oversold state, and a rebound may occur at any time; consider following up.
5. When trading coins, choose leading coins, as they rise the most when they go up, and resist the most when they fall. Don’t buy just because the price has dropped significantly, and don’t avoid buying just because it has risen a lot. The most important thing when trading leading coins is to buy at a high price and sell at an even higher price.
6. Trade in accordance with the trend; the price at which you buy is not necessarily the lower, but the more appropriate. Don’t easily say a bottom when falling; give up those underperforming coins. The trend is the most important.
7. Don’t get carried away by temporary profits; remember that sustained profits are the most difficult. Review seriously to see whether your profits are due to luck or skill. Establish a stable trading system that suits you; that is the key to sustained profits.
8. Don’t force trades without enough confidence. Being out of the market is also a strategy; learning to stay out is very important. Trading should first consider capital preservation, not profit. Trading is not about frequency, but about success rate.
Dear friends, today I will share three classic uses of the EMA indicator. Once you master them, you will have more confidence in your trading.
Recognizing Major Trends
If you want to identify the major trends in the market, then the 'Zero Axis Crossing Method' is definitely worth studying. This method is simple and practical; with just one line, you can have the same analytical skills as many professional technical analysts. This line is the DIF line of the EMA indicator. Let's first understand the EMA indicator. Take Bitcoin (BTC) as an example; we set the parameters of the EMA indicator to 12 and 26, and then analyze it within a 1-hour cycle. You will find that every time a golden cross appears, it is often a good entry opportunity.
Take Bitcoin (BTC) as an example; we set the parameters of the EMA indicator to 12 and 26, and then analyze it within a 1-hour cycle.
You will find that every time a golden cross appears, it is often a good entry opportunity.
In simple terms, the EMA indicator is composed of two parameters, 12 and 26, to form a DIF line, which can effectively identify medium-term trends.
Whether it's a golden cross or a death cross, the market usually follows with a good trend.
In fact, the actual performance of this set of indicator parameters is the same as that of the MACD indicator's DIF line.
For ease of operation, you can also directly use the MACD's DIF line for analysis.
This is the function of the DIF line.
Here, note that the larger the cycle, the stronger the trend directionality of the DIF line. For example, we can choose a 4-hour cycle to identify the trend direction using the DIF line.
When the DIF line falls below the zero axis, we can take appropriate profits and be cautious about going long.
When it breaks above the zero axis, combined with other indicators and large order data, we can have more confidence to go long.
Because once the zero axis crossing occurs, it signifies that a trend has formed. Before this trend ends, we will have many entry opportunities.
Therefore, I suggest treating the DIF line as a trend direction indicator. Its underlying logic is composed of EMA12 and EMA26, and it can be understood as part of the EMA indicator.
Many people think that the EMA indicator has a lagging characteristic, but this is a misunderstanding. The EMA indicator uses a weighted average algorithm, giving more weight to recent prices. Therefore, once recent prices show unusual movements, it will immediately reflect on the EMA indicator, and it can also represent the price level over a period. The EMA indicator achieves a good balance between sensitivity and stability, making it very suitable as a tool for technical analysis. In summary, use the 4-hour cycle to determine the trend; if the DIF line crosses upwards, look for long positions; if it crosses downwards, look for short positions.
Find EMA Signals
1. Resonance Signals
This is a very robust trading method.
I have a set of EMA resonance algorithms; its advantages are many signals, accurate entries, and quick exits. The solid green arrows represent the start of bullish resonance, and hollow arrows represent the end of bullish resonance. If the market trend is upward, combined with these signals, we can enter decisively. In a downward trend, corresponding short signals will also appear.
My suggestion is to first confirm the trend with the DIF line, and then try using this set of resonance indicators. You can also modify the parameters of resonance; currently, my resonance parameters consist of 6 EMAs.
This pure EMA bullish resonance indicator is very easy to understand: when all EMAs show a bullish arrangement, we open long positions; when they show a bearish arrangement, we open short positions. It can provide us with excellent entry and exit opportunities. If you can't find suitable entry reasons and easily feel anxious in the market, then the bullish and bearish arrangement signals of the EMA are very suitable for you.
It can help you not miss the best entry points. In simple terms, use the DIF line to determine the trend and use resonance signals to find entry opportunities. Combining both significantly increases the probability of making money.
Here, students can subscribe to change to their desired EMA resonance indicators.
Did the third thing!
This time I recommend everyone to try this set.
The DIF line determines the trend, and resonance signals find entry points, making money in combination~
Next, let’s take a look at the live market and the recommendations.
First Recommendation: AI Grid
Recommendation Reason: After breaking through the new high, there will be a small fluctuation, very suitable for grid trading. Automated buying low and selling high, lying down to make money.
Why does the host recommend this? Because I have always used AICoin's AI grid for trading.
Running the grid since July 31, 2024.
It should be noted that if there is a period when the grid is broken or exceeds limits, we need to readjust the upper and lower limits.
This is the new upper and lower limit range I set after breaking through a new high. #TradingStrategyPitfalls
Of course, my grid funds are not very large, only 700 U, but the results are very good, with profits continuously increasing.
Second Recommendation: Arbitrage
The host has been running positive arbitrage, making money using funding fees.
I am also continuously engaging in positive arbitrage trading, profiting by earning funding fees. My investment cost is about 30,000 U, and I can generally receive three returns each day, just like collecting money at set times. #MemeCoinSentiment
If you have a large amount of capital, arbitrage is a very good choice. Its advantage is stability, with a high certainty of making money.
Friends with capital above 100,000 U have also made considerable profits using AICoin's arbitrage module, and it’s fast with stable returns. In short, there are many money-making opportunities in the market, and arbitrage is very suitable for large capital participation. Gaining profits from the market gives a truly wonderful feeling of certainty. #ArbitrageTradingStrategy
The above are some of Yan An's views and insights. If you find it helpful, feel free to like and save it. I am Lao Chen, someone who has experienced three rounds of bull and bear markets, skilled in logical coin selection and technical timing, trading only within my cognitive range. Every direction has been validated by the market!
Even the most diligent fisherman wouldn’t go out to sea in stormy weather but would take care of their boat. This season will eventually pass, and sunny days will come! Follow Lao Chen, and I will teach you to fish and how to fish. The door to the coin circle is always open; only by going with the flow can you live a flowing life. Save it and keep it in mind!
$ETH $BTC #上市公司囤币潮
