From a loss of 3 million to a profit of over 40 million, this experience made me realize that investing is not only about wealth accumulation, but also about mental growth. The cryptocurrency world is like a vast ocean, where some sink and others are reborn. May my story inspire and empower you!
Whether a trader truly understands themselves
A person's inner world reflects their outer world.
People often strive to understand others and get to know them, but rarely spend energy and time to understand themselves and know themselves.
More people know themselves through the eyes and opinions of others, but they do not realize that the self they see in others is merely a sense of existence based on a certain character setting, which we call: persona.
This presence is very weak.
A person who does not have sufficient self-awareness cannot fundamentally talk about changing themselves.
How many people often resolve to change, but the results are often contrary to their intentions, gradually falling into self-loathing, thinking 'I am really beyond help' after repeating this many times.
The important reason why one cannot truly change oneself is the lack of sufficient self-awareness and the unwillingness to accept and face the true self.
I have always emphasized that to be a successful trader, one must be upright and honest, as only upright and honest people can dare to face their true selves.
No one can decide the path they will take in the future; only you can decide what you will be like.
Do not live in someone else's 'persona,' existing merely on the surface and within social circles.
Live the life you want to live, regardless of your social circle; in fact, there are probably only a few people in your circle who truly care about you, those few closest to you.
Do not think you are thinking when restructuring your biases;
Do not think you are pursuing a dream when repeating your mistakes;
Do not think you are relaxing when being negative and idle;
Do not think you are being straightforward when hurting others' pride;
Do not think you are being steadfast when stagnating;
Do not think you are making a choice when giving up casually;
Do not think you are being low-key when being unambitious;
Do not think you are being generous when bragging with drinking buddies.
Only by daring to truly change oneself can one's world change as a result.
People often want to live their ideal life but are unwilling to change the bad habits that prevent them from reaching their goals, as if a person's heart has already adapted to a certain behavior, any method that contradicts this habit is anti-human for them.
A successful trader must possess a calm, detached, and optimistic attitude towards life, which requires a strong, independent, and clear self. #Crypto Market Correction
An independent and resilient self is built on the foundation of recognizing one's true self.
To truly recognize oneself, one must start by removing the mask and facing life head-on.
To become a successful trader, start with integrity and honesty.
Hello everyone! In this article, I will discuss 【Candlestick Reversal Techniques】, which are the basics of market observation. Once you learn these patterns, you will be better able to seize market turning points! Without further ado, let’s get into the main topic.
Today, we will focus on discussing several common reversal patterns. Once these patterns appear, they often indicate that the market may soon change direction.
Pattern One: Hammer, Hanging Man, and Shooting Star
The characteristics of the Hammer candle are very obvious, with a small body at the top and a long lower shadow (the length of the lower shadow must be at least twice the body), and the upper shadow is either absent or very short. It generally appears in a downtrend, indicating that the downward momentum has encountered strong support, and the market is likely about to rebound.
The Hanging Man and Hammer candles look quite similar, but the Hanging Man appears in an uptrend. Its appearance indicates that during the uptrend, strong resistance has been encountered, and the market is highly likely to start correcting.
The Shooting Star is also a small body paired with a long shadow, but its upper shadow is relatively long (at least twice the body), while the lower shadow is short enough to be almost negligible or nonexistent. The Shooting Star usually appears in an uptrend, indicating that the upward momentum is weakening, and the market direction may change.
In simple terms, these patterns consist of small bodies with long shadows (but not doji or star patterns). If they appear at the end of a trend, they are likely a reversal signal. If you have a fixed trading cycle, just look at the corresponding candlestick chart.
Pattern Two: Dark Cloud Cover and Piercing Pattern
Dark Cloud Cover usually appears in an uptrend. It consists of two candles, the first being a large bullish candle, and the second being a bearish candle that opens above the previous bullish candle's closing price and closes below the halfway point of the previous bullish candle's body. This pattern indicates that the uptrend may be coming to an end.
The Piercing Pattern is the exact opposite of the Dark Cloud Cover, usually appearing in a downtrend. Similarly, it consists of two candles: the first is a large bearish candle, representing the downward pressure. The second is a bullish candle, whose opening price is lower than the closing price of the previous bearish candle, and its closing price penetrates the halfway point of the previous bearish candle's body. This pattern indicates that the downtrend may soon come to an end.
Both of these patterns are classic reversal signals; everyone can find examples on candlestick charts and combine theoretical knowledge for a good understanding.
Pattern Three: Morning Star and Evening Star
The Morning Star generally appears in a downtrend and consists of three candles. The first is a large bearish candle, showing the strength of the downward movement. The second is a small candle (either bullish or bearish), often accompanied by a gap down, forming a star shape. The third is a large bullish candle, with its closing price close to or exceeding half of the first bearish candle's body. The ideal situation is for the second candle to open lower and the third candle to open higher. However, in the 24-hour continuously trading cryptocurrency market, the conditions can be slightly relaxed. #Strategy to Increase Bitcoin Holdings
The Evening Star and Morning Star are reversed, usually appearing in an uptrend. Again, there are three candles: the first is a large bullish candle, the second is a small candle (either bullish or bearish), often accompanied by a gap up forming a star shape. The third is a large bearish candle, with the closing price near or penetrating the halfway point of the first bullish candle's body.
The reversal effects of these two patterns are very good, especially for the Morning Star and Evening Star, which can effectively reduce human judgment errors.
Pattern Four: Double Tops and Double Bottoms
A double top is formed when the highs of two or more consecutive candlesticks are basically the same or very close, creating a flat top appearance. If two candlesticks with long upper shadows appear simultaneously, the effect is even better, as this is a clear signal of a market peak.
A double bottom is formed when the lows of two or more consecutive candlesticks are the same or close, creating a flat bottom. If it appears at the bottom of a downtrend, it works exceptionally well, especially when the candlestick has long lower shadows.
Pattern Five: Red Three Soldiers and Black Three Soldiers
Red Three Soldiers consist of three consecutive bullish candles, each closing price gradually increasing and nearing the day's high, with the opening price close to the previous candle's closing price. It generally appears in a downtrend, indicating that the market is likely about to reverse upwards. #US Unemployment Claims
Black Three Soldiers consist of three consecutive bearish candles, with each closing price gradually decreasing and nearing the day's lowest price, and the opening price also close to the previous candle's closing price. This typically appears in an uptrend, indicating that the market is likely to reverse downwards.
In fact, Red Three Soldiers and Black Three Soldiers simply refer to consecutive bullish or bearish candles, but their price movements must be relatively large. This pattern is very suitable for judging major trends.
Finally, I want to summarize a small tip for everyone: After a market surge, you can try to short grid trading; after a market drop, use long grid trading. If the market is in a consolidation phase, then use neutral grid trading. If you are doing contract grid trading, be sure to set stop-loss and take-profit levels or simply use a mobile grid to prevent losses from breaking the grid.
If you learn to observe candlestick patterns, for example, if you see a Dark Cloud Cover pattern on the candlestick chart in the morning, you will not blindly chase the price upward. These candlestick patterns are signals conveyed by the market to us; learning to recognize them will help you better grasp trading opportunities.
Finally, I want to share the iron laws of the cryptocurrency world that I have summarized over the years:
1. Buy early when it falls, sell early when it rises: If you see the price of a coin plummet in the morning, do not panic; this may be a golden opportunity to enter. Conversely, if the coin price surges, be wary of the risk of a correction and reduce your position accordingly.
2. Afternoon Strategy: If the coin price continues to rise in the afternoon, be cautious about chasing highs to avoid standing guard at high levels; if there is a sharp drop in the afternoon, there is no need to rush to catch the bottom; observe the market response the next day before making decisions.
3. Maintain a stable mindset: It is crucial to remain calm in the face of market fluctuations. During significant drops in the morning, avoid panic selling; when the coin price is consolidating, rest and keep a clear mind.
4. Follow the trend: When the trend is unclear, avoid blind operations. Do not sell when the coin price does not surge, do not buy when there is no correction, and observe during consolidation.
5. Bullish-Bearish Line Strategy: When buying coins, it is safer to choose a bearish candle; when selling coins, wait for a bullish candle to appear before considering action to achieve higher returns.
6. Counter-trend thinking: While following the trend is a basic principle of trading, in certain situations, going against the trend can also create miracles. Only by daring to challenge market conventions can one become a true winner.
7. Patient observation: When the coin price is consolidating at high and low levels, avoid rushing for results. Patiently wait for the market trend to clarify before decisively taking action to ensure success.
8. Risk after high-level consolidation: When the coin price suddenly surges again after consolidating at a high level, be wary of the risk of a correction. At this time, decisively reduce your position or exit to avoid being trapped at a high level.
9. Hammer Doji Warning: If the market shows a Hammer Doji pattern, it indicates that a market reversal is imminent. At this time, closely monitor market dynamics, understand cautious operations, and avoid the risks of over-leveraging.
The above are ten years of trading insights in cryptocurrency, after experiencing many bumps and bruises. These are heartfelt words of enlightenment, hoping they are useful to everyone. Old Chen's works must be high-quality; there are beautiful people in the crypto world, absolutely unique and independent, with a soulful path and skilled in currency trading!
No matter how diligent a fisherman is, they won't go out to sea during stormy weather but will carefully safeguard their fishing boat. This season will eventually pass, and a sunny day will come! Follow Old Chen, who teaches you both fishing and the art of fishing, as the doors of the crypto world are always open. Only by following the trend can one lead a life in accordance with the trend; store this in your heart!
$ETH $BTC #加密市场回调
