Cryptocurrency Market General Rules
The cryptocurrency market used to be a confrontation between the East and West. There used to be market movements both during the day and at night, with the main activity occurring during Western hours, specifically between 21:30 and 7:30 Beijing time. Major price increases typically happen in the early morning, so a qualified trader should sleep at 20:00 and wake up at 4:00 to focus on trading.
1. If there is a continuous decline during the day domestically, you must buy the dip; at night, foreigners will pump the market.
2. If there is a significant increase during the day, do not chase the price; it will likely drop back at night.
3. The key signal for buying and selling is the pin bar; the deeper the pin, the stronger the buy and sell signals.
4. Major meetings or positive news will usually lead to price increases, but once the news is released, the price will drop.
5. Group discussions about proposals, community recommendations to buy cryptocurrencies, and overly enthusiastic talks often lead to losses; it’s likely you’ll be trapped, so act in the opposite direction. If a particular cryptocurrency is very hot, you can short it immediately.
6. If a group member recommends something you’re not interested in, there’s a high probability it will take off; when in doubt, it’s worth trying a small amount.
7. When you hold a large position, you will definitely face liquidation; why? Because you are prominently featured on the exchange’s liquidation list.
8. After your short position hits the stop-loss, it will definitely drop; if it doesn't trick you out or explode, how could it fall? For example, TRB.
9. When you are close to breaking even, just a little more, and the rebound suddenly stops; how could it let you close the position and escape?
10. When you take profit, it gets pumped; if you don’t exit, how can the price rise? The position is too heavy.
11. When you are excited, the waterfall will arrive as expected; your excitement is also bait from the market makers.
12. When you are broke, every project seems to be rising, making you FOMO and rush to enter. So you understand that the market is manipulated over 80% of the time; besides controlling your position, you must also act proactively and resolutely refrain from entering before the market makers act. Once you enter, you become the meat on the butcher’s block. Trading is about patience, determination, and timing; let’s support each other.
