To trade in cryptocurrencies, you must buy strong coins. Whether it is short-term speculation or medium- to long-term planning, strong coins are targets that we cannot ignore.
Strong coins refer to the altcoins that are rising steadily in the cryptocurrency circle. They may be the leaders of a wave of market trends, or they may be representative star coins in hot sectors. How to discover strong coins is of great benefit to our cryptocurrency career.
Main features of strong coins
1. High amplitude (high volatility): The daily amplitude of strong coins is generally not less than 10%. Sometimes it can reach more than 30%, and may even reach 50% to 100%.
2. Has sector effect: Strong coins may be the leading stocks of a wave of market, or they may be representative star coins in hot sectors. The rise and fall of strong coins will affect the rise and fall of coins in the same sector.
3. The trading price reaches new highs repeatedly within a certain period of time.
How to choose strong coins:
1. Don’t buy if the daily line closes with a negative line after shrinking volume or if the line closes with a negative line after increasing volume at a high level. Leave the line for the next day if the volume continues to increase and the line continues to close with a positive line (flat-top positive line). The line should be able to stay at the high closing price for three days, and the VOL volume should be balanced during the adjustment without shrinking excessively. Buy when it is close to the 99-day average price line.
2. Try to buy when the daily line is oversold. This way, even if the price continues to fall, your price will not be at the top of the mountain.
3. Only buy leading coins. If you can’t make money on the leading coin, how can you make money on other second-tier coins? Even if I want to buy the entire sector, there is a more concentrated chip as the leading coin.
Which altcoins have the potential to become strong coins?
1. When BTC plummets, first select the coins that are still rising or resistant to falling, and then remove the coins that have been rising for a long time. Remove the coins whose technical trends are rising, and the remaining coins are worth our study. These coins at least show that there are dealers in them, and they will definitely rise in the near future. The dog dealers are just waiting for opportunities.
2. Choose coins that are full of negative news. When everyone knows that a coin is very bad, it often can't get any worse. When all the negative news is out, it will become good news.
How to track strong coins in short-term operations
1. Accompanied by the emergence of huge volume (trading volume)
It is common sense in the currency circle that when a coin moves out of the bottom and enters the rising channel and becomes the leading coin, it must be accompanied by trading volume. Only coins with trading volume will continue to rise, otherwise it will just be an oversold rebound.
2. There is an upward slope
The rising slope and the falling slope are common in the currency circle. When a coin enters the rising slope, a strong upward trend is about to begin; and when a coin shows a falling slope, it often has a large drop in the short term. The rising slope and the falling slope are often the starting point of the qualitative change of the coin price. From the law of the generation of leading strong coins, there must be a steep rising channel. Once the rising channel is formed, the coin will show a continuous upward momentum. This is why there are often coins that soar over a period of time.
3. The price of the currency has always reached new highs
The biggest feature of a strong coin is that its highs are constantly moving upwards, and new highs are constantly appearing, which makes its upward pressure seem very light, while followers feel that it is lonely at the top. Although many investors dare not easily intervene, strong coins are always setting new highs.