After years of struggling in the cryptocurrency market, I have tried countless trading methods, most of which look good but are ineffective. However, there is one method that not only helped me achieve continuous profits but also allowed me to establish a foothold in the cryptocurrency market, and I am still using it.
Don’t think this method is too difficult; I am just an ordinary person. Since I can make money with it, you certainly can as well. Those who can’t make money often do so because they haven’t discovered this simple and useful method. Mastering it, earning an extra 3%-10% daily is not a dream. Now, let me explain in detail:
Screen for potential coins: identify coins that have appeared on the gainers list within the last 11 days, while excluding those that have continuously dropped for more than three days. These coins may have already been abandoned by investors and carry significant risks.
Monthly screening: open the monthly K-line chart for these coins and keep those with a MACD golden cross. A MACD golden cross on the monthly chart signifies a strong long-term upward potential.
Precise entry on daily charts: switch to the daily chart and focus on the 60-day moving average. When the coin price pulls back near the 60 moving average and a volume spike K-line appears, it is a good time to buy heavily, indicating strong buying support and the potential for an upward movement.
Operate based on moving averages: after buying, use the 60-day moving average as a reference. If the coin price is above the moving average, hold it with confidence; once it falls below the moving average, sell immediately. The operation consists of three key points:
When the coin price rises by 30%, sell one-third of your position to lock in some profits.
When the price increases by 50%, sell one-third to secure some profits.
It is particularly important to note that if the coin price directly falls below the 60-day moving average the day after buying, regardless of the circumstances, clear all positions. Although this situation is rare, protecting your principal is the most important thing. Of course, if the coin price later meets the buying conditions again, you can buy again.
The key to this method is to identify trends and strictly adhere to trading discipline. Many people do not lack understanding of the method but fail to execute it resolutely. The cryptocurrency market changes rapidly; one cannot be rigid-minded and must learn to respond flexibly. The trends of the overall market and individual coins may not be the same. Trading cryptocurrencies is not just a contest with the market but also a battle with one's own nature. Sometimes what seems to be a risk is actually an opportunity; what seems to be an opportunity is actually a trap. Only by maintaining rationality and strictly following the strategy can one continue to make money in the cryptocurrency market.