These trading rules seem like they provide a structured approach to timing entries and exits in the crypto market, especially for short-term strategies. Let’s break down each of these rules for a clearer understanding:
1. "9-Day Drop for Strong Coins": This rule suggests buying after a strong coin has been in a steady decline for nine days, likely assuming that it’s due for a rebound. This works if the coin has strong fundamentals, as longer declines could mean it’s now oversold.
2. "Two-Day Rise, Sell": Selling after two days of consecutive gains helps lock in profits before a potential retracement, as short-term rallies often face resistance on the third day.
3. "7% Rise, Continue Observing": When a coin gains more than 7% in a day, it could indicate strong upward momentum. Continuing to watch the trend lets you capture additional gains if momentum persists.
4. "Correction for Strong Bull Coins": Waiting for corrections in strong coins reduces the risk of buying at a peak, letting you enter at a more stable or lower price.
5. "Three Days of Stability, Switch After Another Three": If a coin shows no significant movement for six days, it may lack immediate potential. Switching could free up capital for better opportunities.
6. "Failure to Recover Cost, Exit": Exiting when a coin can’t recover its previous day’s price is a safeguard against holding onto a potentially weakening position, as a consistent inability to reclaim price could suggest downward momentum.
Each of these rules reflects different aspects of price action, risk management, and momentum trading—key elements in short-term trading. By following such disciplined rules, it’s easier to control emotions and take action based on defined signals.
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