Do you agree with this statement: The boundaries of knowledge determine the boundaries of wealth, and people can only earn wealth within the boundaries of their knowledge!
80% of the assets in the cryptocurrency world are scam projects, and they are all used to exchange for the fiat currency in your hands. 90% of the projects will return to zero. But they all imply that they can rise a lot. However, most people will choose small coins, hoping to get rich 100 times.
According to incomplete statistics, 80% of the financial media in the cryptocurrency circle are entertainment anchors, and the vast majority of the rest are professional thugs supported by experts in promotion projects. The current situation in the circle is that powerful people want to speak out and tell the truth, but if they do not conform to the mainstream view, they are easily beaten up, and gradually lose the motivation to popularize science and retire.
There are not many people like me who are thick-skinned to a certain extent... It is their retreat that has created a large number of great gods? Immortals? Or something like that... In the current information explosion, all kinds of voices emerge in an endless stream. Without judgment of one's own and independent thinking, it is extremely easy to be lured into the ditch.
When I meet people who dream of getting rich overnight, I tend to say “Yes, yes, yes, yes, that’s right, you are right”…
Gradually I found that if we have the same ideas, there is no need to talk too much, but if we have different ideas, talking too much is useless. The wrong people paying attention to you is the beginning of your troubles. "How is the market today? Will it rise tomorrow?"...
The less people do while they are alive, the greater the probability of achieving wealth.
There is so much to do that not only do I feel out of breath, but I even have trouble supporting myself.
Anyone in the cryptocurrency circle who is into wool-pulling, NFT, defi, or whatever is popular are often mobile leeks, and they will go wherever the sickle is.
In the cryptocurrency world, some people have worked on social media for their entire lives, some have worked on sickles for their entire lives, and some have worked on media for their entire lives. They have spent their entire lives doing the same thing. They all have a good old age. People who have tried everything and done everything throughout their lives have a very unhappy life in the cryptocurrency world.
The old hands in the cryptocurrency circle now, after experiencing the market's beating, only do one thing: hoard Bitcoin for the long term. This is basically how it will be for the rest of their lives, just keep watering and growing it, and all the learning is to strengthen this strategy.
If you continue to firmly implement the operation of hoarding coins, you will most likely never be short of money in your life.
Five pieces of advice from two rounds of bull and bear markets:
1. Don’t throw away bull coins easily. Choose bull coins first. Get halfway. Do both hot and strong coins. Investment and speculation are both suitable. Get the whole way.
2. The most important thing for a trader is the ability to respond during trading.
3. Qualitative analysis must be done well. Qualitative analysis of large cycles, weekly coin selection, monthly identification, and daily tracking
4. Follow the rules and use Bollinger or your own moving average to look at the market
5. Ability cannot be taught, it all depends on technical skills. Repeat successful experiences and make making money a habit. It is more important to make money frequently than to make a lot of money.
I have sorted out the essence of the [K-line Strategy]. As long as you master it, you can use this method to trade cryptocurrencies and your account is guaranteed to increase 30 times. Today, I have specially sorted out the dry goods and share them with those who are interested. Please keep them well.
I will explain the basic logic of PriceAction in the most concise and refreshing way, and prove to you that PriceAction is a very simple and practical concept, and it is the biggest guarantee for us as retail investors to survive in the market.
Once you have mastered it, it can become your market advantage, allowing you to flexibly customize different coping methods and trading plans in various market conditions without having to struggle.
Of course, I am not some immortal Taoist or Buddha. It does not mean that you will be invincible after learning PriceAction. I can only guarantee that you will react faster to the market and enter the market more accurately during the trading process, which will increase your chances of success. If you are meeting me for the first time,
Welcome, here you will learn everything about trading. Students who are interested in money-making techniques, remember to follow me so as not to miss it, we will start right away!
We know that whether it is the foreign exchange market, stock market, futures market or the cryptocurrency market, there are many things that cannot be quantified.
Emotions, fear, greed, human nature, conspiracies, expectations, predictions, opinions, news, etc.
So can we pack all of this into a huge processor and convert it into a quantized value?
Of course! This value is the K-line
The value of K-line itself is already very great. We can actually get a lot of information just by K-line.
If we take a knife to disassemble the K-line, we will find that at different times, different locations, and different markets, we will see different feedback from buyers and sellers, and these feedbacks are PriceAction (price behavior).
In simple terms
PriceAction consists of three parts
1. Market structure
2. K-line pattern
3. Chart Patterns
These three parts have different usage and logic.
PriceAction is translated into Chinese as: Price Action
What is behavior?
When we humans do anything at any time, there is a logic and reason behind it. The same is true for the market, because behind the K-line is the collision of human nature. Next, we will separate the above three parts.
If you feel that you have gained a lot after reading this, welcome to follow me, because in the near future, I will explain the logic behind each pattern and the most ideal usage for each part of PriceAction (price behavior) separately.
2. Market Structure
Generally, when we look at charts, whether it is stocks or digital currencies, we are often distracted by different news, emotions, speculations, or various news, which distract us and make us ignore the real structure of the market.
The structure of the market
There are only three possibilities: 1. One-sided market. 2. Trend reversal. 3. Sideways fluctuation.
[One-sided market]
As the name implies, the market is currently moving in a certain direction. At this time, its supply and demand are in an unbalanced state. There are two ways to help us distinguish whether the current market is a one-sided market.
Method 1:
In the process of rising prices, they will continuously create higher highs, higher lows, and higher highs (that is, continuously create new highs). In the downward trend, they will continuously form lower lows, lower highs, and lower lows (that is, continuously create new lows). When the market is in a one-sided market, every time the price creates a new high or low, it will invisibly form a new support and pressure level.
The most common thing we see is that every time a new high or a new low is broken, it will rebound to the previous high or low.
This is why we often see on the market that yesterday’s resistance becomes today’s support, and yesterday’s support becomes today’s resistance.
Just like high jumping, going up one level at a time
Each time you jump to the next new high point, you fall back due to the influence of gravity, and then use the reaction force to jump higher, repeating the cycle and jumping higher and higher.
The same is true for the downward trend, jumping down level by level, getting lower and lower
Method 2: However, many times, the market does not develop strictly according to the situation described in the book. What we see more often is a chaotic market.
At this time, we can use trend lines to help us determine the market trend. Generally speaking, as long as there are two points, they can be connected into a line, and its slope can be used to determine its strength. The steeper the trend, the stronger the trend. On the contrary, the flatter the trend line, the weaker the trend.
In a sense, the trend line itself is the support and resistance level.
In an uptrend, the market follows this trend line and moves up every time it touches this support level.
In the downward trend, it goes down step by step, following this trend line, and it will fall every time it hits this pressure point.
In our daily trading, if we apply trend lines and combine them with the key position concept just mentioned, the winning rate of transactions will be greatly increased. The above two methods are the most commonly used methods to use PriceAction to judge market trends.
[Turning Point]
Generally speaking
In an upward trend, we will not go against the market like idiots and sell. On the contrary, in a downward trend, we will not want to buy. None of us knows how long a trend will last, and we should not guess the top casually.
So sell at the top, or simply buy at the bottom if you feel the price is too low.
I usually only trade against the trend in the following two situations:
They are:
The price reaches a strong and critical support resistance level and cannot break through; or the one-way market trend has failed.
Case 1
You need to pay attention to the reaction of the price when it encounters the main support and resistance levels. Generally, we call this kind of support and resistance level "key level". The so-called key level is more effective and more accurate than the general support and resistance level.
In simple terms
You can compare the general support pressure point to a relatively thin piece of wood. Although it has a certain degree of hardness, it is still possible to break it with bare hands.
The key position is like a brick. Although the price will hit it hard, it cannot break through this strong and powerful position. This kind of position is often used by long-term institutional investors to enter or exit the market, so false breakthroughs, sharp rises or sharp falls often occur. Once you have learned the concept of the key position,
You will understand why my order, which was originally going smoothly and profitable, suddenly plummeted or soared.
Or why it often hits my stop loss position and continues to move in the direction I predicted. Similar situations in the future can be greatly reduced.
Method 2
It is to use fundamentals to judge whether the market trend has changed. When the upward trend can no longer reach a new high, and the price falls below this key support level, we will regard it as a trend reversal to decline.
In a downtrend, when the downward momentum is no longer sufficient to push the price to a new low, and the price is pulled up by the opposite force and breaks through the key pressure level, we will regard it as ready to start a new upward trend.
【Sideways】
Case 3: Sideways movement
This is a situation we often encounter in the market. Except in very extreme cases, no market will rise or fall forever.
As long as there is a relatively high level in the market, some people will take profits and leave.
Of course, some people will choose to wait and see, and there will be a relatively low price. Some people will think it is worth buying and start to buy at the bottom and stock up.
Coupled with different news, different views, and different analyses, the market temporarily forms a balance without a clear direction until one party breaks this balance at a certain moment. Only then does it evolve into a one-sided market.
Buffett said: Only gods can make stable profits in swing trading
So here, my advice to you is to try not to intervene in the transaction in the middle of a sideways shock.
Otherwise, you will be fooled by the market and make mistakes in everything you buy. If you must trade in a volatile market, please follow the following two points, otherwise you will lose everything.
1. Cooperate with the big cycle
Take this example, I see on the daily chart that the price is in a downtrend
It is currently making a correction upwards, and the K-line from one or two days ago has already shown a long shadow. This sign proves to us that the current market correction may be almost over and is ready to continue to fall.
At this time, we look at the small cycle 1 hour chart. At the top of the oscillating market, a Pinbar K-line pattern appears. It is a typical bearish K-line pattern. Therefore, when the small time chart and the large time chart are in place, the success rate of this transaction will be high.
2. Make sure your profit-loss ratio is no less than 1:1
I think there is no need to explain this sentence. If the profit and loss ratio of each transaction is less than 1:1, in the long run your position will only slowly decrease. Willing to lose but not willing to win is a taboo in trading. Don't do transactions that lose more than you earn, otherwise your capital curve will be very unhealthy.
At this point, we have finished talking about the core of PriceAction - market structure.
3. K-line pattern
Congratulations, you have successfully entered the door of PriceAction. What you need to do in the future is to look at more charts and practice more.
As long as you can accurately identify the situations just mentioned, no matter in any cycle or any situation, you will be able to discern what the market is doing, which will help you filter out many wrong decisions, make the right trading plans more flexibly, and greatly improve your trading performance.
Among the components of PriceAction, Price accounts for a large proportion. As I mentioned at the beginning of the article, the candlestick chart is a graphical representation of price.
We can get a lot of information from K-line that is helpful for our market analysis. However, in order to make our trading more convenient, the market has formulated regular quantitative signals for us, so various K-line patterns have been derived.
In many cases, in addition to the market structure we just learned, we also need to rely on the K-line pattern to provide us with double protection, give us confidence, and trigger our transactions, so it is equally important to learn the K-line pattern well.
First, let's briefly introduce the definition of this form.
Next I will tell you how to use the market structure in PriceAction
Finding the best location
And use this K-line pattern to enter the market
Win a high-probability trade
InsideBar
Because its shape resembles a pregnant woman, it is called bearish harami and bullish harami in Chinese. Bullish harami consists of a Yin line plus a very small Yang line. The Yang line, whether its body or shadow, is within the previous K line. The bearish harami is the opposite. The Yin line's body and shadow are both within the previous Yang line.
Generally speaking, there are two common ways to trade this pattern:
No.1
When the price breaks through the high or low of the previous K-line, no matter whether the latest K-line ends or not, we will enter the market to buy or sell. This is a left-side transaction.
The second more conservative approach
Just wait for the current K-line to end at the high or low of the previous K-line. Only enter the market after the direction is established.
When we make trades based on the candlestick pattern, the most taboo thing is to enter the market immediately when we see the Pinbar. We sell when we see the PinBar. We buy when we see the bullish engulfing.
.......
This is a very wrong approach
Because the K-line pattern should be used as a confirmation model and can only be used as an auxiliary. Their composition often does not exceed 3 K-lines, so they cannot represent more comprehensive information and trends. Using them alone to make trading decisions is not a wise choice. The best way is to cooperate with the market structure, in the most advantageous position, with the most accurate entry time. If you can understand this principle, I believe you will stay away from the bad mentality of chasing ups and downs, and will not be too far away from stable profits.
Let’s look at two examples of charts.
Example 1: Trend Continuation
In the above picture
The price hit a new high here and then began to pull back. At this time, a bullish harami appeared here, with a small positive line sandwiched between a negative line, but the pullback has slowed down. When the K-line pattern ends, it is followed by a large positive line, and the closing price is higher than the bearish engulfing pattern, proving that buyers have officially returned.
We choose to enter the market after the market closes here, and set the stop loss to the nearest key position. The result proves that our transaction is correct. The K-line drives the price upward smoothly and successfully reaches the take-profit point.
Example 2: Trend Reversal
In the above picture
We see that after a downward trend has continued for a period of time, the price begins to stop making new lows. This is the first sign that the trend is beginning to weaken. After the price breaks through this key level
Then it returned to this position and formed a pregnant line pattern at this time. A Yin line completely wrapped a small Yang line. When the next K line ended, it was officially confirmed that the seller's attempt failed and continued to rebound.
4. Chart Patterns
What is a chart pattern? If you have been sharing technology for a while, you will find that the market will continue to do one thing through repeated patterns, and chart patterns provide such a trace.
This helps us to find out what the market is doing at this moment and the logic behind it.
Today I am here to share with you two chart patterns that are often seen on the market.
Ascending Triangle
Descending Triangle
In an upward trend, the price encounters the first resistance level. This resistance level will become the base of this pattern. The price starts to move slightly in the opposite direction. This low point will become the lowest point of this pattern. When the price returns to the same position as the first resistance level, it will encounter resistance again and move in the opposite direction again.
But today's decline will be smaller than the last time. The downward force is obviously weakened. The second support is formed here. We connect the two low points into a straight line. Basically, this pattern has been formed. When the price returns to this horizontal resistance level for the third time, the price successfully breaks through the resistance and continues an upward trend.
The same is true for the falling triangle. The impact of the horizontal support level on the price is smaller each time, and finally the breakthrough is successful, continuing a downward trend.
Generally speaking
The price must touch this pattern at least 5 times, 3 up and 2 down or 3 down and 2 up. More than 5 times is no problem at all, but it is very risky to enter the market immediately just because it breaks through.
In the theory of PriceAction, there is a very important concept called Re-Test. It is also called backtesting.
This means that no matter what kind of market and target, after the price breaks through the key level, it will often fall back to the key level.
BTC’s 4-hour chart
After the price broke through 40,000 USD, it did not reach a new high, and then immediately turned around and retreated, and then rebounded and returned to the high of 40,000 USD. It took only 5 days in total, which is a very favorable backtest example.
Therefore, in order to improve the success rate of transactions, I usually wait for the price to break through and return to the pressure or support level of this level, waiting for the market to test it again. If I see a clear rejection, that is, a long candlestick shadow or similar situation, I will enter the market. Although this approach is more conservative and sometimes you will miss some trading opportunities, this method will have a much higher success rate than entering the market based on the breakthrough alone.
What the market lacks the least is trading opportunities. What it lacks the most is patience. Whoever has patience can make money.
For example, in the market situation in the above picture, people without patience will feel that the price is falling from 41,000, and they dare not chase the decline and short, nor dare to go long, and they only blame themselves for not seizing the opportunity. However, people who learn to use PriceAction and know how to backtest will wait to buy at the bottom.
Because he believed that the price would definitely go up again, he bought the bottom at around 30,000 and entered the market with a heavy position. When the price briefly stopped at 40,000 without breaking through the key position, he immediately closed the position and went short again. He could make a lot of money with just one big wave. This is called waiting for an opportunity and making a big splash!
After reading this, I believe everyone has a preliminary understanding of PriceAction, as well as its derived K-line patterns and chart patterns. If you think it is helpful to you, please like it and save it.
In the cryptocurrency world, you can achieve wealth freedom and class transition. Here are 10 trading skills. If you understand one, you can also make stable profits. It is worth learning repeatedly:
1. Two-way trading: suitable for bull and bear markets. Two-way trading is the most common trading method of Jushi Wealth GGtrade. It can operate and invest according to the trend of the currency market. It can buy up and down. In addition, near the end of the year, Jushi Wealth GGtrade platform has also launched a series of preferential benefits, such as: investment yield increased by 20%, which is a great blessing for the majority of investors.
2. Coin hoarding method: Suitable for bull and bear markets. Coin hoarding method is the simplest and the most difficult way to play. The simplest way is to buy a certain coin or several coins and hold them for half a year or more without operating them. Basically, the lowest return is ten times. However, it is easy for novices to see high returns or to plan to change or get off the bus when the coin price is cut in half. It is difficult for many people to hold on for a month without operating, let alone a year. So this is actually the most difficult.
3. Bull market chasing method: only suitable for bull market. Use some spare money, preferably no more than one-fifth of the funds. This method is suitable for playing with coins with a market value of 20-100, because at least you won't 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 plummets, and so on. If you are stuck with the first altcoin, then continue to wait, and you will definitely be able to get out of it in the bull market. On the premise that the currency cannot be too bad, this method is actually not easy to control, and newcomers need to be cautious.
4. Hourglass replacement method: suitable for bull market. In a bull market, basically any coin you buy will rise. Funds are like a giant hourglass that slowly seeps into every coin, starting with the big coins. There is an obvious rule for the rise in coin prices, that is, the leading coins rise first, such as BTC, ETH, DASH, ETC, etc., and then the mainstream coins begin to rise, such as LTC, XMR, EOS, NEO, QTUM, etc. Then the coins that have not risen will rise generally, such as RDN, XRP, ZEC, etc., and then various small coins will rise in turn. But if Bitcoin rises, you can pick the next level, the coin that has not risen yet, and start to build a position.
5. Pyramid bottom-fishing method: suitable for predicted big crashes. Bottom-fishing method: 80% of the entrusted currency price is used to buy one-tenth of the bullet position, 70% of the entrusted currency price is used to buy two-tenths of the bullet position, 60% of the entrusted currency price is used to buy three-tenths of the bullet position, and 50% of the entrusted currency price is used to buy four-tenths of the bullet position.
6. Moving average method: You need to understand the basics of K-line. Set the indicator parameters as MA5, MA10, MA20, MA30, MA60, and select the one-day line. If the current price is above the MA5 and MA10 lines, hold it firmly. If MA5 falls below MA10, sell the currency. If MA5 rises above MA10, buy and open a position.
7. Violent coin hoarding method: trade coins you are familiar with, only suitable for long-term high-quality coins. If you have a working capital and a certain coin is currently priced at $8, you can entrust it to buy at $7. When the purchase is successfully executed, you can entrust it to sell at $8.8. Use the profit to hoard coins. Take out the working capital and continue to wait for the next opportunity. Adjust dynamically according to the current price. If there are three such opportunities in a month, you can hoard a lot of coins. The formula is that the opening price is equal to the current price multiplied by 90%, and the selling price is equal to the current price multiplied by 110%!
8. IOS’s violent compounding method: Continue to participate in ICOs. When the new coin increases by 3-5 times, take out the principal and invest in another ICO. The profits will continue to remain and the cycle will continue.
9. Cyclic Band Method: Find black-market coins like ETC, and add to your position when the price keeps falling. Then continue to add to your position when the price drops further, and then continue to sell when you make a profit, repeating the cycle.
10. Violent play of small coins: If you have 10,000 RMB, divide it into ten parts and buy ten different types of small coins. The price is preferably within 3 RMB. After buying, don't worry about it. Don't sell it if it doesn't double by 3-5 times. Don't sell it if it is stuck. Put it aside for long-term investment. If a certain coin triples, take away the principal of 1,000 RMB and invest in another small coin. Then the compound interest income will be exaggerated!
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