A delivery guy from Zhejiang turned 500u into cryptocurrency, and in just over a year, he reached 60,000u, surpassing a decade of savings from delivering packages. His life started to take off directly, turning a few thousand into four to five hundred thousand, multiplying by more than a hundred times, which is truly enviable.
Turning 500u into over 60,000u was also his encouragement, and one of the reasons I wanted to truly enter the cryptocurrency world.
If you want to trade cryptocurrency for a lifetime but don't understand the technology and can't find a suitable trading method, then why not try this 'foolproof' operation from my friend, which is simple and practical.
If you haven't found a method, it can indeed be very difficult. However, if your method is correct, you'll find that making money is so easy. The method I'm sharing with you today is actually very simple. Even if you're a beginner in the cryptocurrency world, as long as you strictly follow this method, you can easily make money.
K-line practical strategy is the simplest and most practical method for short-term profit.
Today, Wen Ge shares the five-day strategy with everyone. The five-day strategy is one of the essential skills for short-term and swing trading, and it is also the simplest and most practical short-term strategy, which is equally applicable when dealing with contracts.
First, let’s talk about what the five-day line is.
The five-day line is actually the five-day moving average, which refers to the average transaction price of a coin over five days, abbreviated as MA(5). Sounds simple, right?
The five-day line is also known as the five-day moving average. What is the moving average?
The moving average is short for the moving average line, reflecting the average cost held by the public over a certain period, while also indicating the strength and trend of coin prices. The moving average indicator is one of the simplest and most practical technical analysis indicators, making it relatively easy for investors to master.
Simplicity is often the most practical; simple things can bring unexpected returns to investors.
Every trading platform basically sets up the five-day line in a similar way. Below, Wen Ge will explain how to set up the five-day line on Huobi.
If you find it too chaotic, you can click the × in the second yellow box in the image above to delete the 10-day, 30-day, and 60-day lines, displaying only the five-day line, making the chart look simpler.
How to use the five-day strategy?
The five-day line actually represents the average holding price of players in the crypto world within five days, which is psychologically bearable in terms of average price and is a short-term emotional window.
Therefore, whenever the coin price reaches the moving average, a rebound or accelerated decline will occur, representing support or resistance.
In general, it can be understood that during an upward trend (bull market), when the coin price pulls back to the five-day line, it is an opportunity to increase positions; it is an opportunity to go long.
In a downtrend (bear market), when the coin price rebounds to the five-day line, it is an opportunity to reduce positions. It is an opportunity to open a short position.
The principle of simplicity is very practical for investors without much technical background.
The rise or fall of the coin price generally follows the trajectory of the five-day moving average, which can be divided into three trends: rising, falling, and flattening.
Using the five-day strategy to identify buying points:
1. The five-day moving average is gradually flattening and slightly rising, accompanied by the price of the coin breaking through from below the five-day line upwards. The K-line shows a bullish candlestick breaking the five-day line, clearly standing above it, which is considered a buying point. Contracts can be bought to go long.
2. The coin price operates above the five-day line, and during the pullback, it falls below the five-day line but then rises again. A bullish candlestick clearly stands above the five-day line, which is considered a buying point. Contracts can be bought to go long at this time.
3. The coin price operates above the five-day line, and during the pullback, it falls below the five-day line, but the short-term five-day line continues to show an upward trend, which is considered a buying point. Contracts can be bought to go long at this time.
Using the five-day strategy to identify selling points.
1. The coin price operates above the five-day line and experiences a continuous rise over several days, getting further away from the five-day line. Similarly, extreme situations must reverse; investors have made substantial profits recently, and selling pressure may arise at any time. This is considered a selling point. Contracts can be sold short at this time.
2. When the five-day moving average is gradually flattening from rising, and the coin price falls below the five-day line from above and hovers around the five-day moving average, it indicates increasing selling pressure, which is considered a selling point. Contracts can be sold short at this time.
The five-day strategy is the most suitable short-term skill for beginners to learn and master, even those with zero foundation can quickly get started because...
With a simple moving average quantitative indicator, we can overcome our psychological panic and greed.
In the trading process, technique is not the greatest enemy; the greatest enemy is often one's own greed and panic.
K-line judgment is one of the important indicators for predicting Bitcoin's rise and fall and is an important signal for buying and selling.
Phrase one: Do not sell when the price peaks, do not buy when the price drops sharply, and do not trade during sideways consolidation.
Phrase two: Buy on the dips, not on the peaks; sell on the peaks, not on the dips; going against the market makes one a hero.
Phrase three: High and low consolidation, wait a little longer.
Phrase four: After high-level sideways consolidation, make your move quickly; after low-level sideways with new lows, it's a good opportunity to buy in fully.
Phrase five: If you haven't taken action, first admit your mistakes; it's better to buy less than to buy too much. Investment requires caution!
The secret has been given to you all; whether you can become famous in the circle depends on yourselves.
In the crypto world, achieving financial freedom and class leap, summarizing 10 trading skills, understanding one can lead to stable profits, worthy of repeated study:
1. Two-way trading: suitable for bull and bear markets. Two-way trading is currently the most common trading method, allowing operations based on the trends of the cryptocurrency market. You can buy rising and falling, and as the year-end approaches, a series of promotional benefits have been introduced, such as a 20% increase in investment returns, which is a great blessing for investors.
2. Hoarding method: Suitable for bull and bear markets. The hoarding method is the simplest and also the most difficult to execute. It is simple because it just involves buying a certain coin or several coins and holding for six months or more without trading. Generally, the minimum return is tenfold. However, novices often see high returns or encounter halved coin prices and consider switching or exiting, and many find it hard to stick with it for even a month, let alone a year. So this is actually one of the most difficult methods.
3. Bull market chasing the dip method: only suitable for bull markets. Use a portion of idle money, preferably no more than one-fifth of the funds. This method is suitable for coins with a market value between 20-100, as they will not be stuck for too long. For example, if you buy the first altcoin and it rises by 50% or more, you can switch to the next coin that has dropped sharply, and so on. If you get stuck with the first altcoin, just wait; the bull market will definitely free you. The premise is that the coin must not be too risky; this method is also hard to control, so newcomers need to be cautious.
4. Hourglass switch method: suitable for bull markets. In a bull market, almost any coin purchased will rise. Capital acts as a giant hourglass slowly seeping into each coin, starting with large coins. There is a clear pattern of coin price increases: leading coins rise first, such as BTC, ETH, DASH, and ETC, followed by mainstream coins like LTC, XMR, EOS, NEO, and QTUM. Then, coins that haven't risen will experience widespread increases, such as RDN, XRP, ZEC, etc., followed by various small coins taking turns to rise. However, if Bitcoin rises, you should choose the next level of unrisen coins to start building positions.
5. Pyramid bottom-fishing method: suitable for predicting major crashes. Bottom-fishing method: place a buy order at 80% of the coin price for one-tenth of your position, at 70% for one-fifth, at 60% for three-tenths, and at 50% for four-tenths.
6. Moving average method: Understand some basic K-line concepts. Set indicator parameters MA5, MA10, MA20, MA30, MA60, and choose a daily chart. If the current price is above the MA5 and MA10, hold on. If MA5 falls below MA10, sell the coin; if MA5 rises above MA10, buy and build positions.
7. Violent coin hoarding method: Invest in coins you are familiar with, suitable only for long-term quality coins. Have a certain amount of liquid funds; if a coin's current price is $8, place an order to buy at $7. When the purchase is successful, place an order to sell at $8.8. Profits will be used for hoarding coins. Take out liquid funds and continue waiting for the next opportunity. Adjust dynamically based on the current price. If there are three such opportunities in a month, you can hoard quite a few coins. The formula is that the purchase price equals the current price multiplied by 90%, and the selling price equals the current price multiplied by 110%.
8. ICO violent compound interest method: continuously participate in ICOs. When the new coin rises to 3-5 times its initial value, take back the principal and invest in the next ICO, allowing profits to continue accumulating and cycling.
9. Cyclical wave method: Find coins like ETC that are underperforming. When the coin price keeps falling, increase your positions, and when it falls further, continue to add, then wait for profits to sell out, cycling continuously.
10. Small coin violent play: If you have 10,000 RMB, divide it into ten parts, buying ten different types of small coins, preferably priced under 3 RMB. After buying, do not intervene. Do not sell until it triples or quintuples; do not sell if stuck, let it become a long-term hold. If a coin triples in value, take back the principal of 1,000 RMB and invest in the next small coin. The compound returns can be astonishing!
Fate brought us together, and knowing each other means parting. Mu Qing firmly believes that fate will lead to meeting across thousands of miles, and separation is destiny. The journey of investment is long; the gains and losses at one moment are just the tip of the iceberg. One must know that even wise people will have their oversights, while those who are less fortunate may have unexpected gains. Regardless of emotions, time will not stand still for you. Pick up the burdens in your heart, stand up, and continue moving forward.
Aze only engages in real trading; the team still has room to get in on $BTC $ETH.
