BTC Tomorrow's Trading Strategy This morning, the closing price of Bitcoin fell by 1.27%. The market has made some adjustments, but the extent is very small. Currently, the 6-hour line structure has formed, and today is the second day. There are still 4 days left, so we will see how the adjustments go in these 4 days before deciding how to operate. For now, just maintain the original position.
Xu Xiaoming's Discussion on the Timeliness, Geography, and Harmony of Trading
Geography refers to space. Although time is the most important factor, in trading, the calculation of profits and losses relies on space. In the past, most people lost money in the stock market primarily because their entry positions were incorrect. Many entered the stock market in the late stages of a bull market, when everyone around them was making money, and when everyone was talking about the stock market, they felt they could do it too.
One month before the stock market crash, the number of new accounts hit a historical high. Data from the Central Clearing and Settlement Company shows that over 4 million people rushed into the stock market, and then the crash occurred. When these people criticize the stock market, they actually overlook the issue of space. The issue of space is closely related to human nature; people prefer to buy on the rise rather than on the fall. This is not just the stock market; it applies to everything—people like to buy on the rise rather than on the fall. This human nature results in entering at too high a position, leading to losses in geography.
BTC Tomorrow's Trading Strategy This morning, the closing price of Bitcoin continued to rise by 1.78%. The 6-hour chart closed at 14:00, forming a structure, and the 4-hour chart also formed a structure. However, the 12-hour chart has flattened out and disappeared. I had already reduced some positions earlier, and now that a structure is forming again, I will not reduce positions further. Currently, the 6-hour chart has not flattened out yet, which means there are no operations for the time being. I will maintain the current positions and wait for the market's upcoming trends. From a broader perspective, I currently judge that since April 9th until now, it has been five waves of one. After the first wave ends, there will still be an adjustment period. Of course, the adjustment doesn't necessarily mean a decline; if it's strong, it could just be sideways movement. In any case, regardless of the direction, we will operate according to the rules and align our actions with the market!
This morning, the closing price of Bitcoin fell by 0.28%. The current speed has slowed down, and at this pace, it will take about 7 more cycles before the stagnation disappears. The 12-hour line shows stagnation at +9, and it will take just 1-2 more cycles for the stagnation to disappear. It is possible for stagnation to disappear whether the price rises or falls. We will first observe the closing situation tomorrow morning. The continuous market rise has exhausted the strength of the bulls, so a correction is certain; it just depends on where the turning point is. The core idea of "Reminiscences of a Stock Operator": Follow market trends, adhere to trading discipline, overcome human weaknesses, and capture big trends through rule-based strategies under controlled risks! This is exactly what we are currently committed to in our trading.
BTC Tomorrow's Trading Strategy This morning, Bitcoin closed with a gain of 6.42%, forming a strong bullish candle! Currently, the 4-hour, 6-hour, and 12-hour charts are showing signs of divergence, with the 4-hour showing a divergence strength of +9. If this 9 is valid, it may lead to a structural formation, which could indicate a short-term peak. The 6-hour chart is about 3 cycles away from divergence disappearing at the current pace, and the 12-hour chart is also about 2-3 cycles away from divergence disappearance at the current pace. If it remains this strong like today, the divergence may disappear. Once divergence disappears, there will not be any short-term divergences. According to the rules, I can only correct and add back the positions that were previously reduced.
This morning, the closing price of Bitcoin rose by 0.2%. The market is currently experiencing further increases, indicating that the rise that began on April 9 has been an upward cycle so far, with no corrections yet. Both the 4-hour and 6-hour charts have formed new divergences, and the 12-hour chart is also likely to show a divergence. The divergence prices on the 4-hour and 6-hour charts are quite significant. The key factor now is the speed; if the price accelerates upward, it will eliminate all divergences. Once divergences disappear, corrections will need to be made to buy back positions that were sold. If positions have already been reduced prior to the structure forming, then just maintaining the unchanged positions will suffice. Over the next few days, keep a close eye on how the market evolves.
BTC Tomorrow's Trading Strategy This morning, Bitcoin closed with an increase of 2.22%. After forming a structure, it rebounded after three days of adjustment. For the 4-hour and 6-hour charts to form a structure, there must first be a rebound (indicating a slowdown). Of course, if this is not a pullback but a continuation upwards above 97895, it indicates that the upward cycle that started on April 9 is ongoing, and the adjustment has not yet come. If it continues upwards and the 4-hour close is above 97330, there will be further stagnation; if the 6-hour close is above 97402, there will also be stagnation, with the possibility of forming a structure again. For now, we will wait to see how the market moves before deciding on our actions. Trading requires predictions, but predictions are not always correct. A high win rate does not necessarily indicate success; if there are no mistakes, the win rate issue does not come into play. Predictions cannot be 100% accurate, nor is it necessary for them to be. If the prediction is correct, trade based on that prediction; if the prediction is incorrect, use rules to constrain and resolve the situation.
BTC Tomorrow's Operation Strategy This morning, Bitcoin closed with a drop of 1.65%. Currently, there is a certain pullback, but the main focus is on whether it has broken the trend. The structure is designed to assist and serve the trend, which is why it is called the trend is king structure. If the structure does not trigger a change in the trend, the structure has no meaning. If the structure triggers a change in the trend, its mission has already been accomplished, and the trend will take over the subsequent market, having no further relation to the structure. The role of the structure is 24 cycles, the 6-hour line from the formation of the structure to this morning's close is 8 cycles. How to operate depends on how the market moves in 3 days.
BTC Tomorrow's Trading Strategy This morning, Bitcoin closed with an increase of 0.41%. At the closing time, a structure was formed on the 6-hour chart. According to the rules, it is necessary to reduce positions. If the structure is valid, there will be a 6-day adjustment period. Regardless of whether this is an upward wave that started on April 9 or a B-wave rebound, there is a high probability of a pullback. The key point is that the structure has formed, and according to the rules, positions should be reduced! Things always develop in the direction of least resistance; volatility is the way to expend the least energy. Just as there are rebounds after a significant drop, there will be adjustments after a significant rise. Because the energy expended in breaking through the trend from this bottom is too large, an appropriate adjustment will be beneficial for further increases in the market.
BTC Tomorrow's Operational Strategy This morning, Bitcoin closed with an increase of 2.46%. While rising, a structure has formed on the four-hour line, and the six-hour line shows signs of stagnation. Currently, it is at a certain distance from the trend. If the four-hour line structure is valid, the probability of breaking the trend after four days of adjustment is low. However, if the six-hour line forms a structure, there is a high probability of breaking the trend after six days of adjustment, which requires reducing positions. For now, we should keep a close eye on the situation of the six-hour line! Understanding Xu Xiaoming's Concepts of Stagnation and Structure Stagnation and structure formation aim to quantify the divergence between peaks and troughs, which reflects a slowdown in speed and a weakening of momentum. From a natural law perspective, a reversal requires a regressive process, much like a moving car needing to decelerate before reversing. Structure formation is about identifying this turning point, while stagnation is the preparatory phase.
BTC Tomorrow's Trading Strategy This morning, the closing price of Bitcoin dropped by 0.79%, which is a small decline. Currently, it seems that the high of 9 has not failed yet. The adjustment and sideways movement is a strong performance. As for the operation, there is no structure; without a standard for operation above the trend, it is still best to hold onto your coins! Xu Xiaoming's Thoughts on Building a Systematic Trading Approach What should we pursue most in trading? Systematic trading. — Build your own operating system. Whether considering a single transaction or a specific situation, the correct method does not necessarily yield the best results, and incorrect methods may lead to occasional victories or even brilliance. However, in the long run and in totality, success must come from adhering to correct habits and methods, as well as continuous refinement of character. Correct analysis and prediction are only the first step towards successful investment. The foundation of successful investment requires rigorous risk management (position management and stop-loss management) and meticulous self-psychological and emotional control (remaining unflustered in honor or disgrace, calm in the face of change). Psychological control comes first, risk management second, and the importance of analytical skills is the least.
BTC Tomorrow's Trading Strategy This morning, Bitcoin closed at 95011, with an increase of 1.34%. Yesterday's sequence high was 9, and its validity can be from the previous cycle or the next cycle. Therefore, today's closing can be determined as a short-term high point. If valid, there should be a correction, but the correction does not necessarily mean a decline; it could also be a sideways stagnation, indicating that the market is actually very strong. We will specifically see how the market moves next. The invalidation quantitative standard is a daily close above 95011. In terms of operation, since there is currently no structure, continue to hold onto coins and wait for appreciation above the trend! It is still uncertain whether this is a B-wave rebound or the first wave of a reversal. We will proceed step by step, operating according to the rules! Xu Xiaoming's Trading Philosophy on Digital Quantitative Analysis The quantitative philosophy to overcome human weaknesses. Successful trading requires overcoming human weaknesses such as greed and fear. He advocates using calm numerical standards to conquer these emotions, emphasizing the unity of knowledge and action along with iron discipline, and avoiding subjective judgment deviations through a systematic approach.
This morning, the pancake closed down 0.93%, with a series high of 9. However, the effect of the bearish candle is average. The series high of 9 may be a short-term peak for the previous and next cycles. The series is not regular and lacks structure. There is still no operation above the trend! Xu Xiaoming's trading philosophy emphasizes that the trend is king and the structure is refined. I greatly admire Steve Jobs' minimalist philosophy because minimalism is difficult to surpass. The trend is very reliable; strategies based on the trend have no issues in direction. However, there are so many people studying trends in the market, yet the successful ones are few. A deeper reflection on the reasons reveals that it is not a problem with the trend, but rather a problem with human nature. While the trend is reliable, the success rate is low. Human nature finds it challenging to remain consistent in an environment with a low success rate. The trend has a low win rate, but when it wins, it wins big. Overall, it is profitable. In simpler terms, it means small losses and big gains, with many losing trades but each losing trade being small. When a trend emerges, the profits can be substantial, capturing a large portion of the market's movement. In contrast, most investors experience the opposite: small gains and large losses, earning little when they profit, and a single loss wipes out all previous profits. This also indirectly confirms the reliability of the trend, which tends to counter the losses of most people. However, it is challenging to maintain a trend, as trends are too broad and do not consider the weaknesses of human nature. The oscillation strategy belongs to left-side trading, which greatly compensates for the shortcomings of right-side trading. Only the oscillation strategy can achieve this. Therefore, my trading philosophy is designed to be extremely simple: one trend strategy combined with one oscillation strategy. Adding one more is excessive, but removing one is insufficient. It is also essential to distinguish between primary and secondary strategies, so that the trend as king structure is refined, with the trend at a higher level than the structure. The trend is right-side trading, while the structure is left-side trading. In trading philosophy, having one right-side trading combined with one left-side trading is sufficient; this is already minimalism.
BTC Tomorrow's Trading Strategy This morning, the closing price of Bitcoin formed a doji, indicating that there is currently a divergence between the bulls and bears. The daily sequence is high at 9, pay attention to the closing situation at 8 AM tomorrow. The nine-turn sequence works better only in secondary reverse waves or oscillations, but if it enters a primary positive wave (one-sided rise), the effect is not good. The nine-turn is more suitable for oscillating markets or weak markets, and is not applicable during sharp declines in bear markets or in strong bull markets. That is: ① In a rising trend, look for low 9; ② In a falling trend, look for high 9; ③ Against the trend, look for divergence 9; ④ The killer technique of the nine-turn sequence in oscillating markets. If the market is in an upward cycle, the low 9 during pullbacks is effective, while the high 9 often fails. If the market is in a downward cycle, the high 9 during rebounds is effective, while the low 9 is not useful. When rising, low 9 can help the rise; when falling, high 9 can help the fall; when it rises, high 9 is needed to end the rebound and show a divergence resonance; when it declines, the decline ends with low 9, showing a divergence resonance. Of course, the sequence is not a rule and is generally not used alone. It should be used in conjunction with structure.
BTC Tomorrow's Trading Strategy This morning, the closing price of Bitcoin rose by 0.7%. Today's series high is 8, and if it continues to rise tomorrow, there will be a series high of 9, which will create a small peak. However, the sequence is not regular, so pay attention to whether there is structure on the 4-hour chart. If the level is not significant, there is a high probability it will dull and disappear. Without structure, there will be no trading! Xu Xiaoming established the five key principles of systematic trading: the principle of openness. If you are losing in the market, then it is certain that there are some shortcomings in your trading system. Therefore, your system should be open, always ready to accept the correct and correct the errors. Because times are changing, market conditions are also changing, and the methods and logic of trading are changing as well. Trading systems cannot be rigid; they need to continually inject enthusiasm and vitality. You need to open your eyes to observe more, perk up your ears to listen more, and more importantly, open your mind to communicate with others. You also need to periodically take a break, gather some data, and reflect on whether your trading system still adapts to the current market.
BTC Tomorrow's Trading Strategy Bitcoin closed this morning with a gain of 0.31%. In terms of operation, it is currently above the trend without any structure, so we will continue to hold and wait. Today's sequence high is 7, and we should pay attention to the high point situation the day after tomorrow.
Xu Xiaoming's Five Principles of System Trading: Discipline Principle
As an investor in the capital market, one must first develop good behavioral habits and form good trading habits. Only then can one navigate the turbulent trading market with ease.
Do not harbor 'luck' and 'fantasy' at the center of the market.
When you establish your own trading system and force yourself to adhere to ironclad discipline, you will become a general, and your capital will become soldiers. So think about it: who is more likely to win a battle, a disciplined regular army or undisciplined scattered troops during a clash?
This morning, the pancake closed with a rise of 2.74%, breaking through the long-term trend and surpassing both short and long-term trends. According to the rules, there is currently no reason to hold a short position. The only thing to pay attention to is that both the 4-hour and 6-hour charts have become dull. At the same time, the 4-hour chart is currently at a series high of 9. If the close at 16:00 is a bullish candle and the high is 9, it is very likely to form a structure here. Therefore, according to the rules, if there is a bullish close, one can reduce positions or wait for the structure to form before reducing positions. At this speed, the 4-hour chart has around 12 cycles left before dullness disappears, which means about two days' time. The 6-hour chart is at a smaller level, and it will take only two cycles for dullness to disappear. So the key now is still the speed; once dullness disappears, it means to continue holding the asset.
Xu Xiaoming established five major principles of systematic trading: the principle of simplicity: There are two types of people in the world who are the happiest, one is children, and the other is fools; their common trait is that they do not overthink. Complex thinking can lead to hesitation and indecision in trading, resulting in a loss of decisiveness at critical moments. The first is a complex way of thinking. For example, investors often overly focus on the stocks they have already bought, trying to gather information from various channels. However, because different people have different perspectives, when stock prices fluctuate, discrepancies arise. Information that aligns with the trend will repeatedly appear in their minds, leading them to lose objectivity. If they want to sell, negative news comes to mind; if they want to buy, subjective news comes to mind. The second is a complex method of operation. It is common to see people check KDJ, MACD, trading volume, and fundamentals before buying. By the time they have seen everything they want and feel satisfied, the stock price has already risen, causing them to miss the best opportunity to act. The same applies to selling. Therefore, establish a single trading standard, and operate cleanly and decisively according to that standard, never dragging your feet. Heaven rewards diligence, and trading is to be simple.
BTC Tomorrow's Trading Strategy This morning, the closing price of Bitcoin is close to breaking through the long-term trend, and it has now broken through. Pay attention to the closing situation tomorrow morning. At the same time, the four-hour line has formed a divergence, and the level is still relatively large. The six-hour line is also about to show divergence. Currently, it has broken through both the short-term and long-term trends. The mission of the bottom structure has been completed. Since there is divergence, the focus will now be on the speed. If the upward speed is fast, it will eliminate all divergences while moving away from the trend. If the upward speed is slow and forms a structure due to proximity to the trend, then it will be necessary to reduce positions. For now, there is no need to worry. Our bottom structure is fully loaded, and we are currently just holding assets and waiting. Xu Xiaoming's Five Major Principles for Creating Your Own Trading System - The Principle of Planning: As the ancients said, “If a person has no long-term worries, there will be immediate concerns.” One important principle of creating your own trading system is to have a plan before taking action, providing as detailed a corresponding strategy as possible for what may happen in the future. The only constant in the market is change. To respond to change, the best strategy is to adhere to a predetermined plan and remain unchanged in the face of all changes. For example, you should plan where to take profits or under what conditions, how long you plan to hold, or how much loss you can tolerate—whether to set a moving stop-loss according to a certain standard.
BTC Tomorrow's Trading Strategy This morning, Bitcoin closed with an increase of 0.71%, and the drop of 0.56% the day before was also very small. The recent market has been quite dull, with little volatility and no trading activity. Today remains the same; everyone needs to be a bit patient. After the structure is formed, the market has neither become stagnant nor broken. As long as these two conditions are not met, we just wait. We are now very close to the long-term trend; we just need to wait! Xu Xiaoming's trading system core philosophy: Xu Xiaoming divides trading into three levels: * Phenomenal Level: This is the level where most investors are situated. They focus on various indicators, candlestick patterns, and trading volume, among other surface phenomena. However, this type of analysis often falls into a cycle of 'repeated explanations' and struggles to grasp the essence of the market. * Mathematical Level: Xu Xiaoming emphasizes the importance of quantitative analysis, believing that only by elevating trading to the level of numerical laws can one truly understand the operational logic of the market, achieving 'knowing what it is and why it is so'. * Philosophical Level: This is the highest realm of trading. Through long-term systematic practice, investors can form an essential understanding of trading, reaching the level of 'Tao'.
BTC Tomorrow's Trading Strategy This morning, the closing price of Bitcoin rose by 1.09%. It has been a week since the trend broke, and it has mostly been sideways. During this week, the market has fluctuated up and down, remaining in a sideways oscillation. We need to be more patient here, waiting for results and for the market to make a choice. The position is quite delicate, so it's best not to make subjective judgments; waiting for results is the most objective and rational approach.
BTC Tomorrow's Trading Strategy This morning, the closing price of Bitcoin rose by 0.46%, with very little volatility. It is still between the long-term trend and the short-term trend, and the space has further narrowed. In terms of operations, continue holding coins and waiting for an increase. The sequence high of 9 and sequence low of 9 on the two-hour chart are basically the high and low points of this small cycle, but the sequence is not regular. Don't always expect perfect trades; pursuing perfection is a major taboo in trading! Not all market conditions are suitable for you, so focus on what you can manage. Trading is about probability; make decisions where there is a significant probability advantage.