Teaching you an effective profit strategy is like finding a needle in a haystack. After in-depth research and practical refinement, today I present a set of high-probability cryptocurrency trading techniques that will help you seize the initiative in your investment journey!
1. Precisely screening potential cryptocurrencies.
Initial screening of the gainers list: Closely monitor cryptocurrencies that have performed well on the gainers list within the last 11 days. These cryptocurrencies have shown strong upward momentum in the short term and are treasure areas for us to explore potential. However, we must be cautious and firmly exclude those cryptocurrencies that have shown a continuous decline for more than three days, as this may indicate that earlier profits have escaped on a large scale, leading to uncertainty in subsequent trends. Our goal is to closely follow strong cryptocurrencies while avoiding getting stuck in the mire of weak adjustments.
Monthly MACD golden cross defines the situation: Open the monthly candlestick chart of the cryptocurrency. The MACD indicator, as an important tool for technical analysis, signals a key point for further screening when a golden cross appears at the monthly level. This golden cross indicates that a bullish trend for this cryptocurrency is forming or has already been established over a longer period, and the market's overall direction is beginning to favor the bulls, laying a solid foundation for our subsequent investments and greatly increasing our chances of selecting quality cryptocurrencies.
2. Daily 60-day moving average: The key to precise entry and position management.
After filtering out the desired cryptocurrencies through the first two steps, we then enter the most critical entry phase.
Heavy entry timing: Switch to the daily candlestick chart, focusing only on a 60-day moving average. Patiently wait for the cryptocurrency price to pull back near the 60-day moving average and for a volume spike candlestick to appear. This is our coveted heavy entry signal. The appearance of a volume spike candlestick indicates a significant increase in trading activity near this price level, with both bulls and bears engaged in fierce competition, after which the bulls gain the upper hand, and a new round of upward trends is likely to begin. At this point, decisively entering with a heavy position allows us to ride the fast track of wealth growth.
Position management details: After entering, the 60-day moving average will become our core standard for holding or not. As long as the cryptocurrency price remains firmly above the 60-day moving average, we will hold firmly and enjoy the dividends brought by the trend; once the price falls below the 60-day moving average, we will exit and sell without hesitation to avoid the risk of deep losses. During the holding process, we also need to make flexible adjustments to the position based on wave gains:
When the wave gain exceeds 30%, sell one-third of the position held. This part of realized profits can lock in earlier profits while reducing overall holding costs, putting us in a more stable position for subsequent trends.
When the wave gain further exceeds 50%, sell another one-third of the position. At this time, the market may have accumulated a certain level of profit, and appropriate reduction helps us optimize investment returns while controlling risk.
It is particularly important to emphasize that if the cryptocurrency price unexpectedly falls below the 60-day moving average the day after buying, you must decisively exit entirely without any luck. Although the probability of this situation occurring through our selection method is relatively low, the market is ever-changing, and any oversight may lead to severe consequences. Only by strictly adhering to discipline and timely cutting losses can one survive in this harsh market for the long haul.
3. Summary: Execution is the key to profitability.
The cryptocurrency market is by no means smooth sailing; various complex situations and sudden changes constantly test investors' mindset and decision-making ability. This method of selecting cryptocurrencies based on the monthly and daily lines theoretically provides us with a rigorous, scientific, and efficient investment strategy. However, in practice, very few can strictly execute the strategy. As the saying goes, 'When the cryptocurrency price directly breaks below the 60-day moving average, you must exit entirely and not harbor any lucky thoughts.' This seemingly simple statement has become an insurmountable gap for the vast majority. Under the temptation of profit and the drive of fear, human weaknesses are often fully exposed, leading investors to make incorrect decisions. Therefore, to achieve profitability in the cryptocurrency market, while methods are essential, strong execution and strict discipline are even more crucial. Only by overcoming internal greed and fear and unwaveringly executing the established strategy can one reap the fruits of wealth in this opportunity-filled and challenging market, achieving steady asset growth and long-term accumulation.
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