Hello friends, let me briefly share with you this new indicator I have acquired. I am not yet fully proficient in using it, but I will continue to share new learning experiences later.
This indicator is a composite indicator. I decided to name it the money indicator. I have learned how to use three of them:
①Trend line: The green thick line represents an upward trend, and the red thick line represents a downward trend;
② Long/Short Signals: Green arrows are long signals, and red arrows are short signals;
③EMA7 and EMA30 - EMA7 is the yellow line, EMA30 is the purple line. When the yellow line is above the purple line, it is an upward trend, and when the yellow line is below the purple line, it is a downward trend.
This indicator can be applied to the analysis of all currencies and at all time levels. Of course, I still need some time to verify its effectiveness. When all the orders in my personal contract account are closed, I will open the order-taking system and trade according to the money-making indicator. Friends can come together to witness its accuracy.
Here are the steps I planned to take in my trading:
When the money indicator sends a valid signal, you can enter the market to go long/short.
It should be noted that the trend line and EMA moving average are roughly the same in judging the rising and falling trends, but there will be some slight differences. An important principle for entering the market is "only go long in an upward trend, only go short in a downward trend". Therefore, only when ①③ indicators are all upward trends, the long signal is valid; when ①③ indicators are all downward trends, the short signal is valid. It is necessary to distinguish between valid signals and invalid signals.
Set a good stop loss line and never resist the order. This is the most important trading principle.
At present, I use the fixed ratio stop loss method. The volatility of BTC, ETH, BNB, and SOL is relatively small, and the stop loss point will be set at 2% of the entry point. For example, the entry point of BTC long orders is 58,000. Calculate the stop loss point 58,000-58,000*4%=56,840, and 56,840 is the stop loss point of this order. The volatility of other currencies is larger, and the stop loss ratio is 5%. After setting the stop loss ratio, determine the amount of margin investment based on the amount of loss you can accept.
There are many ways to stop loss, and I am still learning. Fixed ratio stop loss is very simple, but after using it so far, I feel that it is not suitable for volatile markets, and it is easy to be repeatedly stopped. However, before I learn more methods, I will still use the fixed ratio stop loss method. Because no matter whether the stop loss method is good or bad, as long as the stop loss point is confirmed, the fate of a liquidation can be avoided.
Determine the take-profit point and exit the market in time.
I have learned the following three methods to confirm the stop-profit point.
① Fixed ratio stop profit: set at 1%, 2% of the entry point...it's all right, it depends on personal choice;
② Look at the platform of the trend line: When the trend line forms a platform, it means that the upward/downward trend slows down and the subsequent direction may change. At this time, you can stop profit and exit;
③ Look at the intersection of EMA moving averages: when EMA7 crosses EMA30, forming a golden cross, short positions can be exited; when EMA7 crosses EMA30, forming a dead cross, long positions can be exited.
Now let’s use TON’s 30-minute K-line to simulate the money-making indicator to give everyone an intuitive experience.
A short signal was issued at 14:30 this afternoon. At this time, the trend line is red, but EMA7 is above EMA30. The two trend signals are inconsistent. Wait until 15:00-15:30, and the K-line is completed. Once the death cross is confirmed, you can enter the market. Set the stop loss line as soon as possible after entering the market.
From 19:00 to now, a trend line platform has appeared again. You can exit with profit or continue to hold. As long as EMA7 is still below EMA30 and no golden cross appears, you can continue to hold. If EMA7 crosses EMA30 later, you can finally exit with profit.
