Cryptocurrency Trading Secrets, Simple and Clear: Six Types Not to Buy, Four Types Not to Sell.
Six Types Not to Buy:
1. Coins that have not stabilized above the 60-day moving average and are continuously declining should not be touched.
If the downtrend continues and the price cannot stabilize above the 60-day moving average, it is advisable to wait and observe until the trend reverses before considering.
2. Coins that rise due to positive news are not suitable for buying.
When good news is released, it often indicates a selling signal. For coins already in an upward trend, frequent positive news may suggest that the main funds are looking to withdraw.
3. Stay away from coins that are far from the 5-day moving average and are surging; do not chase the rise.
A rapid increase in price poses heightened risks, and recklessly chasing high prices can easily lead to trouble.
4. Coins that suddenly gap up at high levels should not be riskily entered.
A gap up at high levels poses potential risks that cannot be underestimated; this situation may indicate that the market makers are quietly selling off.
5. Coins with a turnover rate exceeding 30% should be temporarily avoided.
An excessively high turnover rate indicates fierce competition between bulls and bears; in a volatile market, it is best to watch from the sidelines.
6. Coins that are forcefully supported in a poor market environment should not be misled.
When the overall trend is unfavorable yet forced to rise, it is often a “trap,” and one should not fall for it.
Four Types Not to Sell:
1. Coins with RSI in the range of 50 to 80 should be held.
An RSI indicator that is centered and slightly above shows that the coin still has upward potential, and continuing to hold may yield more profits.
2. Coins that gap up from a low position should not be hurriedly sold.
A gap up indicates strong bullish momentum; one can wait for the subsequent trend to see if the upward movement continues.
3. Coins that are trending upwards should be firmly held.
Acting in accordance with the trend, coins that are in an uptrend may provide larger profit margins the longer they are held.
4. Coins with concentrated chip distribution should not be easily sold.
A highly concentrated chip distribution may indicate that the main funds intend to push the price higher, and selling at a higher price later is also not too late.
Insights on Trading Cryptocurrencies:
Trading cryptocurrencies must follow rules; one cannot act solely on intuition. Accurately analyzing trends is far superior to blind speculation!
I share practical tips daily, aiming to help you secure real profits in the cryptocurrency market.
"Six Types Not to Buy, Four Types Not to Sell" is a summary of my practical experience, hoping to pave the way for everyone!
