After 10 years of trading cryptocurrencies, I have made a profit for 7 years. The first three years were like a headless fly, buzzing around aimlessly, not only without any gains but also incurring significant losses; the first few years were all about gaining experience. Thanks to the learning summaries later on, especially the 'Horizontal Breakthrough Method' that my mentor, Lao Jiu, passed on to me, I was able to awaken and achieve long-term stable profits, reaping abundant rewards!
Whenever the market is fluctuating or in a consolidation phase, there will be a period of adjustment. During this time, one must look for the breakout direction after the adjustment, where there are many great opportunities. It all depends on how to distinguish between real breakouts and false breakouts. Once a real breakout is identified, one can enter the market early and wait to reap the rewards!
If the following points are met, you can basically distinguish between real and false breakouts!
1. Look for cryptocurrencies that are consolidating. Don’t rush to enter; the consolidation period is best to be at least three months or more! If a large bullish candle breaks out of the previous consolidation range, and the selling volume the next day exceeds the previous day's volume significantly, then it's a false breakout!
2. After breaking out of consolidation, it should not break below the support level for three consecutive trading days, which is the upper edge of the consolidation range. A true breakout will not fall below the support level; otherwise, it’s a false breakout!
3. When breaking out of consolidation, it often requires an increase in volume, and the volume must be significantly larger. If it breaks out on low volume, the upward momentum is insufficient, and one should be cautious of a false breakout!
Lao Jiu has presented this method in a visually rich format, with related cases shown in the images below, and all the key points have been highlighted for everyone. Newcomers can easily learn this!
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