Let me teach you a little trick for trading cryptocurrencies. I often do this, and my success rate is nearly 100%.
Any cryptocurrency that multiplies tenfold starts by doubling first.
1. First, look for small bullish trends. In the past two months, there have been coins with a growth rate of over 100%. Some large bullish coins have observable patterns before they start to rise.
Let's make a bold assumption: the strong remain strong. Just like in life, we say that this person was outstanding before, and they might achieve something in the future.
Or, this person is a bit of a fool; we should be wary of their foolish actions later. This means that most people or things have their own inertia. Based on this, we can first select the coins that have performed strongly in the recent period and put them into a watchlist. In practice, I prefer coins that have risen smoothly among the strong ones.
I can't explain too much, but it's somewhat similar to the idea that since everyone is excellent, it will depend on who stands out next.
2. Patiently wait for a medium-term adjustment. What is a medium-term adjustment? For example, at least a fluctuation or pullback lasting two months or more.
Why does it need to adjust for so long? To allow the excited funds inside to rest and calm down, to pass through the inappropriate period, and to allow the chips that have made significant profits to change hands, bringing everyone’s average cost closer together.
This way, it will be more beneficial for everyone to work together in the future.
The first wave of particularly strong coins can adjust for only two weeks. So what does particularly strong mean? For example, a coin price doubles within two months. In fact, tracking these coins is quite easy. After putting them in the watchlist, just check them every weekend. As long as nothing goes wrong, and it approaches the minimum time limit for adjustment, move them to a key watchlist and pay attention during daily reviews.
3. Index and sector resonance. Does reaching the minimum adjustment period mean you can buy in? Of course not. The law states that a man can marry at 22, but does that mean you must marry on your 22nd birthday?
You must patiently wait for the market and sectors to resonate, only then can you enter based on two signals.
1. A strong upward movement with increased volume. 2. A narrow fluctuation with decreased volume.
There’s no need to wait for the coin price to exceed the previous high before the adjustment. Because exceeding does not guarantee certainty; it’s better to seize the opportunity at the starting point and occupy a favorable position.