Five Key Points for Stable Profits in the Cryptocurrency Market!

First Point: Observe During Consolidation, Don't Rush to Enter

Whether the market is consolidating at a high or low, observation should be the priority. This is because during consolidation, the market is choosing its next direction. After a low-level consolidation, it may reverse upwards or continue to fall; similarly, after a high-level consolidation, it may continue to reach new highs or experience a pullback to unload. Therefore, when the market direction is unclear, do not rush to enter. If you decide to try, make sure to clear positions for trial and error, and set strict stop-loss levels to prevent unnecessary losses.

Second: Buy on Bearish Candles Online, Sell on Bullish Candles Offline

In simple terms, this strategy can help you grasp buying and selling opportunities in short-term trading. The daily moving average is a key indicator for judging the strength of short-term trends. Usually, if the candlestick operates above the moving average and the moving average is rising, the short-term trend is strong, and a bearish candle touching but not breaking the moving average is a good buying opportunity. Conversely, if the candlestick operates below the moving average for an extended period, even if a bullish candle signal appears, one should not easily enter the market. In other words, when below the moving average, the trend is weak and not suitable for going long.

Third: Take Profit and Stop Loss in Time, Strictly Execute the Plan

In cryptocurrency trading, after setting target price levels, it is essential to adhere to the discipline of taking profits and stopping losses. The market changes rapidly, and greed often leads to excessive holding, missing the best selling points. Similarly, if the market moves contrary to expectations, exiting quickly can effectively reduce losses.

Fourth Point: Pay Attention to Changes in Trading Volume, Insight into Market Sentiment

Trading volume is a barometer of market sentiment. When prices rise accompanied by increased trading volume, it indicates strong bullish sentiment in the market and may be a buying opportunity; conversely, if trading volume shrinks during the rise, it may signal a weakening market, making it unsuitable to chase the rise. Additionally, if trading volume spikes sharply during a price drop, it may signal a bearish exit, so avoid entering the market.

Fifth Point: Patiently Wait for the Best Entry Point, Avoid Frequent Trading

The market is volatile, but that does not mean every fluctuation is an opportunity. Frequent trading often leads to high transaction costs and emotional decision-making. Maintain patience, wait for clear trends and signals before entering the market to reduce trading errors and improve win rates.