Three Steps to Trade in the Cryptocurrency Market: Look for Strong Coins, Wait for Intermediate Adjustments, and Wait for Index Sector Resonance
1. Seek Out Young Bulls
Some major cryptocurrencies show signs of bullish movement before they start rising. We can assume that "the strong get stronger" and select strong coins that have risen over 100% in the past two months and have a smooth upward trend to add to our watchlist. During trading, we prefer those with smoother trends, and it’s sufficient to check on weekends. Particularly strong ones (e.g., those that have doubled in price within two months) may only adjust for two weeks. When they are close to reaching the minimum adjustment limit, they should be added to the priority watchlist for daily review.
2. Patiently Wait for Intermediate Adjustments
Intermediate adjustments refer to fluctuations or pullbacks lasting at least two months or more. This approach helps calm overly excited funds, facilitates the turnover of profit-taking, and levels out the average cost, benefiting subsequent collective efforts. Particularly strong coins may only adjust for two weeks, and tracking these coins is not difficult; simply follow the aforementioned criteria.
3. Index and Sector Resonance
Just because the adjustment meets the minimum time requirement does not mean it is time to buy. One must patiently wait for the market and sectors to resonate. Enter based on the signals of "increased volume with long bullish candles" or "decreased volume with narrow fluctuations". There is no need to wait for the coin price to surpass the previous high before the adjustment; occupying the starting point in advance is more advantageous.