(From thousands to millions: The legendary rise to wealth and rebirth for cryptocurrency newcomers) Practical sharing: A small account of 2000U actually skyrocketed to nearly 2 million U in one year, achieving an astonishing leap of a thousand times!
If you are planning to step into the tumultuous ocean of cryptocurrency, I sincerely ask you to take a moment to calm down, spend a few minutes, and read my story word by word. Because this may help you avoid countless traps and protect your wealth and family’s peace.
Looking back on my trading journey, being able to reach today and achieve financial freedom is by no means a coincidence or luck. I firmly believe that only through continuous learning can one stand firm in the ever-changing market. From the basic knowledge of cryptocurrency to keenly capturing market dynamics; from in-depth analysis of technical indicators to meticulous refinement of my trading system—every step is filled with sweat and wisdom, ultimately forging a solid foundation for my stable profits.
This road has had its ups and downs: from an initial capital of 50,000 entering the cryptocurrency world, to once earning 10 million; I have also fallen into the abyss, bearing 8 million in debt; but I did not give up, rose again, and made 20 million profit, achieving true financial freedom until now.
There is a dumbest method to trade cryptocurrencies that allows you to maintain 'perpetual profit' and make it 30 million!
This method is still in use today, very high and stable.
Everyone need not worry about whether you can learn; if I can seize this opportunity, so can you. I am not a god, just an ordinary person. The only difference is that others have overlooked this method. If you can learn this method and pay attention to it during later trading processes, it can help you earn an additional 3 to 10 percent daily.
First step: Add cryptocurrencies that have risen in the past 11 days to your watchlist, but be careful to exclude any coins that have fallen for more than three days to avoid capital outflows.
Second step: Open the candlestick chart, only look at the MACD golden cross at the monthly level.
Step three: Open daily candlestick charts, only look at a 60-day moving average; as long as the price pulls back to near the 60-day moving average and a high-volume candlestick appears, enter the market heavily.
Step four: After entering the market, use the 60-day moving average as the standard. If you are above the line, hold; if below, exit and sell. This process involves three details.
1: When the segment's price increase exceeds 30, sell one-third.
2: It is when the segment's price increase exceeds 50 that one should sell one-third.
3: It is the most important and the core that determines whether you can make a profit, which is that if you buy on that day, and the next day some unexpected situation occurs, and the price directly falls below the 60-day moving average, then you must exit completely, without any lucky thinking. Although the probability of breaking below the 60-day line is very small through this method of combining monthly and daily line selection, we still need to have risk awareness. In the cryptocurrency world, preserving capital is the most important thing. However, even if you have already sold, you can still wait for it to meet the buying conditions again before buying back.
Ultimately, the difficulty in making money lies not in the methods but in execution. 'When the price directly falls below the 60-day moving average, you must exit completely, without any lucky thinking.' Just this one sentence has killed 90% of the people.
Everyone comes to the cryptocurrency world with the same initial intention, and this is beyond doubt. If you are just here to waste time, this place is not suitable for you.
Below is a summary of trading behavior; understanding this chart can increase your win rate to 90%.
1. Basic investment principles
Do not trade without analysis: Never trade in the cryptocurrency world without looking at the price chart.
Avoid chasing highs on good news: Never buy when good news is released, especially when the charts show that the price has already risen significantly before the news was released.
Do not catch falling knives: Never buy when the price is crashing just because you think it’s cheap. Under continuous selling pressure, the price often goes even lower.
Stay away from downtrends: Never buy in a downtrend. 'How low can it go?' When the price continues to fall, you will understand the reason for the drop.
Maintain consistency in trading: Always adhere to the principle of trading consistency. If you buy sometimes and sell at other times under the same circumstances, your trading discipline is significantly flawed.
Discover how cryptocurrency experts use six major rules to easily achieve financial freedom!
If you want to make money in the cryptocurrency world, remember these six rules:
1. You need to divide your money into five parts, only take one-fifth for trading. If you lose 10 points, exit immediately. Even if you lose five times in a row, you will only lose one-tenth of your total funds, which won't cause significant damage.
2. You must follow the market, do not go against the trend. When the market is falling, a rebound may be a trap; when the market is rising, a pullback may be a good opportunity to make money.
3. Never chase coins that have already soared; they have risen too high and may fall at any moment.
4. You need to learn to read the MACD indicator; it can help you find the best time to enter. When the DIF and DEA lines cross below the zero axis and then cross above it, that's a good buying opportunity; if they cross above the zero axis and then go down, that's a signal to sell.
5. Remember, never average down when losing money; add to your position when making money. You must observe the volume-price relationship. If the price breaks out on high volume when it's low, it may rise; if it doesn't rise on high volume when it's high, you should run. When selecting cryptocurrencies, choose those with good trends and value.
6. Review your trading every week to see what you did well and what didn’t go well, and adjust your strategies in a timely manner.
These six rules are all lessons learned from my painful experiences; if you follow them, you will definitely thrive in the cryptocurrency world!
16 essential candlestick patterns that every cryptocurrency trader must understand
And price patterns that cryptocurrency novices can immediately grasp, simplicity is the ultimate sophistication; the simpler the thing, the more useful it is.
Purely practical sharing
Candlestick charts originated from a book called 'Sakata Method' in Japan in the 18th century, written by Homma Houshō. The book mainly records strategies used in trading rice, where price illustrations gradually evolved into candlestick lines. Candlestick lines, also known as 'K Lines' in the West, are derived from Japanese terms.
Each daily candlestick requires four prices: opening price, closing price, highest price, and lowest price.
The top line of the candlestick is called the upper shadow, the middle thick line is the body. The lower thin line is the lower shadow. When the closing price is higher than the opening price, indicating an upward trend, we call this type of candlestick a bullish candlestick, which typically has a red body in the middle. At this point, the length of the upper shadow indicates the price difference between the highest price and the closing price, the length of the body represents the price difference between the closing price and the opening price, and the length of the lower shadow indicates the price difference between the opening price and the lowest price.
Below are 16 candlestick patterns and their price formations that are essential for trading:
Candlestick charts are used to predict future price trends. Below are 16 common candlestick patterns and how to use them to find trading opportunities.
Candlestick charts have three basic functions: 1. The candlestick body represents the opening/closing price range; 2. The wick or shadow indicates the intraday high and low; 3. The color of the candlestick reveals the market trend direction – a green body indicates a price increase while a red body indicates a price decrease.
As prices change, various candlesticks form some patterns that traders can use to identify key support and resistance levels. There are many candlestick patterns, and they imply trading opportunities in the market—whether it's a price trend reversal, a continuation of the price trend, or market indecision. Before starting to trade, it's crucial to understand the basics of candlestick charts and identify trading opportunities through their patterns, which provides a basis for trading.
Practice reading candlestick charts: When using any candlestick chart, although candlestick and price patterns are suitable for quickly predicting trends, we should also integrate them with other forms of technical analysis to confirm overall trends.
Six Bullish Candlestick Patterns: These may form a bullish trend after a market downtrend, indicating that the price trend has reversed. They are indicators for traders considering establishing long positions.
Hammer candlestick pattern: The hammer candlestick pattern consists of a short body and a long lower shadow, positioned at the bottom of a downtrend. A hammer indicates that despite selling pressure, strong buying power ultimately leads to a price rebound. The hammer's color can vary, but a green hammer indicates stronger buying power than a red one.
Inverted Hammer Pattern
The same bullish pattern is the Inverted Hammer. The only difference is that the upper shadow is long while the lower shadow is short. This indicates buying pressure followed by selling pressure, and the pressure is insufficient to lower the market price. The Inverted Hammer indicates that buyers will soon take control of the market.
Bullish Engulfing Pattern
The Bullish Engulfing pattern consists of two candlesticks. The first candle is a short red body, which is completely swallowed by a larger green candle.
The opening price of the second day is lower than that of the first day, but the bullish market drives the price up, ultimately attracting more buyers.
Piercing Line
The piercing line consists of two long bars, formed by a long red candle and a long green candle. Generally, there will be a large gap between the closing price of the first candle and the opening price of the green candle. Since the price has been lifted to the previous day's midpoint or even higher, this indicates strong buying pressure.
Morning Star Pattern
The morning star pattern is considered a sign of hope in a downtrend. It consists of three candles: a long candle situated between a long red and a long green candle. Generally, the 'star' does not overlap with longer candles, as there are market gaps at both the opening and closing. This indicates that the selling pressure on the first day is weakening, and a bull market is forthcoming.
Three White Soldiers
Three White Soldiers consists of consecutive long green candles (with upper shadows), with their opening and closing positions gradually higher than the previous day. This is a strong bullish signal, indicating that buying pressure is steadily increasing after a downtrend.
Six Bearish Candlestick Patterns
Bearish candlestick patterns often form after an uptrend and signal resistance points. Severe pessimism regarding market prices often leads traders to close their long positions and open a short position to take advantage of price declines.
Hanging Man: The inverted hammer is a bearish pattern, equivalent to the hammer pattern. It has the same shape but forms at the end of an upward trend. This indicates significant selling, but buyers manage to push prices higher again. Significant selling is often seen as a sign that bulls are losing control of the market.
Shooting Star
The shape of the shooting star is the same as that of the inverted hammer but is in an upward trend: its lower body is small while the upper shadow is long. Generally, the market will show a large gap at the opening, then rebound to an intraday high, and then close above the closing price, like a star falling to the ground.
Bearish Engulfing Pattern
The bearish engulfing pattern occurs at the end of an uptrend. The first candle has a small green body, which is then engulfed by a long red candle. This indicates that price fluctuations have peaked or slowed down, suggesting an impending market downturn. The lower the second candle goes, the more significant the trend may be.
Evening Star
The evening star is a pattern made up of three candles, equivalent to the bullish morning star. It consists of a short candle, a long green candle, and a large red candle sandwiched in between. The appearance of this pattern often indicates a reversal in the upward trend, especially when the closing price of the third candle is below the opening price of the first candle, indicating a clear bearish trend.
Three Black Crows
The Three Black Crows pattern consists of three consecutive long red candles, with short or nonexistent shadows. The opening price is close to the previous candle's opening price, but as selling pressure increases, the closing price keeps falling. Traders interpret this pattern as the beginning of a downward trend, as sellers have outnumbered buyers for three consecutive trading days.
Dark Cloud Cover
The cloudy sky covering pattern indicates a bearish reversal. It consists of two candles: a red candle that opens with a gap above the previous green body and closes at the midpoint. This indicates that bears have taken over intraday trading, causing prices to plummet. If the candle's shadow is short, it indicates a decisive downtrend.
Four types of continuation candlestick patterns
If the candlestick pattern cannot indicate a change in the market trend, we call it a continuation pattern. These can help traders determine the resting time of the market when it is indecisive.
Doji
(DOJI) When the opening and closing prices of the market are very close and almost at the same level, the candlestick pattern resembles a cross or a plus sign. This type of Doji indicates the struggle between bulls and bears, with neither side gaining any advantage. A standalone Doji pattern is a neutral signal but can be found in trend reversal patterns, such as the bullish morning star and bearish evening star.
Spinning Top
The spinning top candle pattern has a short body, with the body positioned in the middle of the upper and lower shadows. This pattern indicates market indecision, leading to minimal price changes: bulls push prices higher, while bears push prices lower again. The spinning top pattern is generally interpreted as a continuation pattern of an upward or downward trend. In itself, the top of the spinning top is a relatively mild signal, but it can indicate an impending change as it shows that current market pressure is losing control.
Falling Three Methods
The pattern of the three methods is used to predict the continuity of the current trend, whether bearish or bullish. The bearish pattern is called 'Falling Three Methods'. It consists of a long red candle followed by three small green candles, and another red candle – all green candles are contained within the bearish candle range. It will tell traders that the bullish force is not enough to reverse the trend.
Rising Three Methods
For bullish patterns, the Rising Three Methods candlestick pattern is the opposite. It includes three short red candles sandwiched between two long green ones. This pattern conveys to traders that despite some selling pressure, buyers are still in control of the market.
The candlestick chart shows the changes in market prices over a specific time period and is an important tool for entering cryptocurrency trading. Here are some basic guidelines to help you understand candlestick charts.
1. Bullish K-line patterns
1. Hammer Line
The hammer line is located at the bottom of a downtrend, with a long lower shadow at least twice the body length. This indicates that despite significant selling pressure, buyers push the price back close to the opening level. A green hammer line is a stronger bullish signal than a red one.
2. Inverted Hammer The Inverted Hammer pattern is similar to the Hammer pattern but has a long shadow above the body. It typically appears at the bottom of a downtrend, indicating upward potential. Even if sellers pull it down to the opening level, the price will not continue to fall, suggesting a possible market bullish reversal.
3. Three White Soldiers
The Three White Soldiers pattern consists of three consecutive green candles, with the opening price within the body range of the previous candle, and the closing price exceeding the highest point of the previous candle. The short lower shadow indicates persistent buying pressure.
4. Bullish Engulfing Candle
A bullish engulfing candle consists of a longer red candle followed by a shorter green candle, with the green candle entirely within the body of the red candle, indicating that the bearish trend is slowing down or about to end.
2. Bearish candlestick patterns
1. Hanging Neck Line
The Hanging Neck Line is similar to the Hammer Line but appears at the end of an upward trend, indicating that although the buyers are pushing prices higher, significant selling suggests that the market may soon turn bearish.
2. Shooting Star
The shooting star is a candle with a long upper shadow and a short body, usually appearing at the end of an uptrend, indicating that the market has peaked and sellers dominate the price decline.
3. Three Black Crows
Three Black Crows consists of three consecutive red candles, with the opening price within the body range of the previous candle, and the closing price below the previous candle's lowest point, indicating that selling pressure is continuously pushing the price down.
4. Bearish Engulfing Candle
A bearish engulfing candle consists of a longer green candle followed by a shorter red candle, with the red candle entirely within the body of the green candle, indicating that buying pressure is weakening.
5. Dark Cloud Cover
Dark Cloud Cover consists of a green candle followed by a red candle, where the opening price of the red candle is higher than the closing price of the previous green candle, but the closing price is below the midpoint of the green candle, usually accompanied by high trading volume, indicating a market shift from up to down.
Three types of consolidating candlestick patterns
1. Rising Three Methods
The Rising Three Methods pattern is commonly found in upward trends, consisting of three shorter red candles followed by a continuing upward green candle, indicating that the market will turn bullish again. This pattern signals that the market will continue to rise after a brief adjustment, serving as a buy signal.
2. Falling Three Methods
Opposite of the Rising Three Methods, the Falling Three Methods pattern indicates that the market will continue to decline. This pattern consists of three shorter green candles followed by a continuing downward red candle, signaling that the market will continue to fall after a brief adjustment, serving as a sell signal.
3. Doji
When the opening price and closing price are the same or very close, a Doji pattern forms, indicating indecision between buyers and sellers. Doji can be categorized into the following types:
Gravestone Doji: Indicates a bearish reversal, with a long upper shadow and opening/closing prices close to the lowest point.
Long-legged Doji: Indicates indecision, with upper and lower shadows, and opening/closing prices near the midpoint of the body.
Dragonfly Doji: Indicates bullish or bearish market trends, with a long lower shadow and opening/closing prices close to the highest point.
Four, how to use candlestick charts in Bitcoin trading
1. Learn the basics
Cryptocurrency traders should deeply learn the basics of candlestick charts, including how to read them and identify different candlestick patterns. Understanding different candlestick patterns and their meanings is fundamental to conducting technical analysis.
2. Combine multiple indicators
Combine candlestick patterns with other technical indicators, such as moving averages, relative strength index (RSI), and exponential moving average (EMA), to obtain a more comprehensive prediction. The combination of multiple technical indicators can improve the accuracy of predictions.
3. Choose multiple time frames
Analyze candlestick patterns across multiple time frames to gain a comprehensive understanding of market sentiment. For instance, when analyzing daily charts, also pay attention to hourly and 15-minute charts. Analysis across multiple time frames can help traders better grasp both short-term and long-term market trends.
4. Practice risk management techniques
Using candlestick patterns carries risks, and traders should practice risk management techniques such as setting stop-loss orders to protect their funds and avoid overtrading. Proper risk management can help traders reduce losses and improve trading success rates.
Candlestick patterns are a way to observe market trends and can help traders identify potential opportunities. Combine market conditions and technical analysis indicators, such as trend lines, RSI, stochastic relative strength index, Ichimoku charts, and parabolic indicators for analysis. Support and resistance levels are also crucial components of candlestick chart analysis, with support levels indicating price levels expected to have strong demand and resistance levels indicating price levels expected to have strong supply.
Five, Practical skills
1. Trend confirmation
Use candlestick patterns to confirm market trends. For example, the continuous appearance of the Three White Soldiers pattern can confirm an upward trend, while the Three Black Crows pattern can confirm a downward trend. Trend confirmation is an important step in formulating trading strategies.
2. Combine trading volume
Analyze candlestick patterns combined with trading volume. Changes in trading volume can provide additional market sentiment information. For example, in the Rising Three Methods pattern, if the trading volume increases with each green candle's appearance, it indicates strong buying intent.
3. Backtesting strategy
Before applying candlestick patterns in real trading, backtest trading strategies using historical data. Through backtesting, you can evaluate the effectiveness and stability of the strategy, thereby improving trading success rates.
4. Maintain discipline
During trading, strictly follow established strategies and risk management measures. Avoid emotional trading; maintaining calmness and discipline is a crucial element of successful trading.
By learning deeply and practicing, beginners can gradually master Bitcoin candlestick chart analysis skills, enhancing their decision-making ability and profit level in cryptocurrency trading.
15 Essential Rules for Survival in the Cryptocurrency World!
First rule: Preserve your capital to survive in the market for the long term.
Capital is the lifeline and must be firmly guarded! Many people ignore risks in pursuit of high returns, resulting in severe losses.
Second rule: As long as you are not greedy, making a profit is actually very simple.
Maintain a stable mindset; earning a little less can actually make it easier to accumulate wealth.
Third rule: Concentrate investments; do not go all-in, go with the trend.
Do not blindly diversify investments; avoid putting all your capital in. Adjust your strategy according to market trends.
Fourth rule: Avoid heavy positions, do not stubbornly hold, and trade less.
Control your position size, do not stubbornly hold on to losses, and trade moderately.
Fifth rule: Enter calmly, exit decisively, and firmly set stop-loss.
Do not rush to buy; act decisively when selling, set stop-loss lines, and strictly enforce them.
Sixth rule: The market's profits are infinite, but losses may be endless.
Don't be greedy for money that can't be earned, but losses can deplete everything.
Seventh rule: Once the stop-loss is triggered, exit immediately.
Stop-loss is a protection for your account and should not be hesitated.
Eighth rule: Long-term and short-term, securing profits is the most stable strategy.
Whether trading long or short, you ultimately need to ensure you secure your profits.
Ninth rule: The immutable truth of the market is that extremes must reverse.
No matter if it rises or falls, there is a limit and it will inevitably reverse.
Tenth rule: Don't trade without an opportunity; missing out is not terrible.
Do not force every opportunity; capturing part of it is enough.
Eleventh rule: Waiting for the right opportunity is more important than acting blindly.
Do not rush to find trading opportunities; patient waiting is more beneficial.
Twelfth rule: After achieving your goals, stop trading and conserve your energy.
Do not be greedy; exit at the right time after achieving daily goals to preserve energy for the next trade.
Thirteenth rule: Stop-loss is self-imposed, profits come from the market's grace.
Stop-loss is the responsibility of the investor, while profits are the market's reward.
Fourteenth rule: Wealth comes from waiting, not from frequent trading.
The best investments are often made while patiently waiting, not through constant trading.
Fifteenth rule: When in a fragile state of mind, strictly executing your strategy is the most important.
Desire can easily get out of control in trading; only strict execution of strategies can achieve unity of knowledge and action.
Welcome to follow A Xin; you can watch live trading for learning and exchanges, and have a clear direction and strategy in the market. No matter what style the market is, knowing in advance allows you to better understand it!!!
