Cryptocurrency Trading Techniques (Part One)
1. Use technical indicators but do not get bogged down in them.
There are countless technical indicators in candlestick charts, and sometimes learning too many can confuse objective analysis. The ultimate goal of learning these indicators is to obtain the information you need; if you have gained the necessary information from a particular indicator, there is no need to get caught up with others, as many indicators in candlestick charts have similarities.
2. Go with the trend.
Those who follow the trend thrive, while those who go against it perish. In terms of investment, you should go with the trend; grasping the larger trend is like boarding a spaceship that will quickly take you to great heights, making it hard not to profit. Conversely, if you take counter-trend actions, especially during major market movements, you will likely fall into a bottomless pit that cannot be filled, deeply trapping the investor and potentially leading to significant losses. Therefore, understanding the trend is paramount.
3. History may not repeat itself, but it has lessons to teach. In technical analysis, there are indeed times when you can catch clues from historical data. The cyclical patterns of the market do not change; other markets follow the same pattern, transitioning from adjustment periods to growth periods, then to maturity, and finally to decline, repeating this cycle. Therefore, in technical analysis, historical data should be considered comprehensively.
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