In My 7 Years in Crypto...
These are my 2 most profitable strategies that have stood the test of time, working well in both choppy and trendy markets.
🚀 Momentum
↔️ Mean Reversion
(Full Guide Below 👇)
Before I dive in...
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💼 I use 2 strategies to trade altcoin price action:
1. Momentum: For trending altcoins 📈
2. Mean Reversion: For choppy or ranging altcoins 📉
💰 These strategies have helped me make millions in crypto and successfully catch recent pumps on $SOL, $TON, $BTC, and $ETH.
Here’s how they work:
1. Momentum Strategy
This strategy might contradict what most trading gurus preach, but it’s my primary approach for trading both altcoins and $BTC.
🔑 Key Criteria for Momentum Longs:
- Bullish Market Structure 📊
- Moving Averages (MAs) Fanned Out 🧮
- High Volume Breakout 🚀
💡 Example:
$SOL was trending upwards, making it a prime candidate for momentum longs at resistance breaks.
Stay tuned for my exact Momentum strategy at the end of the thread.
2. Mean Reversion Strategy
This is the go-to strategy that’s most commonly taught online, and it’s especially effective in sideways or ranging markets.
🔑 Key Criteria for Mean Reversion Triggers:
- Resistance Rejecting 🛑
- Swing Failure Patterns 🔄
- Support Bouncing 🏗️
💡 Example:
$LINK was range-bound recently, offering excellent Mean Reversion opportunities.
⚖️ Pros and Cons:
Both strategies are powerful, but there’s no “RIGHT” strategy. The key is to figure out which one aligns with your personality and trading style.
🧠 Pro Tip:
Test both strategies on a small account first. This will help you understand your counterparty and build an emotional edge by asking:
- "How are momentum traders thinking right now? Are they euphoric?" 🎉
- "How are mean reversion traders thinking right now? Are they panicking?" 😰
To Effectively Play Both Strategies:
1. Identify Market Structure 🔍
2. Determine if the Price is Trending or Choppy 🧭
3. Create Entry and Exit Triggers 🎯
4. Take 30-100 Trades, Journal, Improve, Repeat 📝
💥 Following this approach will position you to catch significant gains in altcoins during the bull market.
