In the field of cryptocurrency investment, mastering the core strategy is like turning on the acceleration mode for your life
True market masters understand that technical analysis is not the most dazzling magic weapon, but the strict adherence to and implementation of market rules.
No top, no bottom, long-term holding around the moving average
Take this year as an example. BTC has risen from the bottom of 38,000 to 50,000, seemingly close to the top. After a slight correction, it rose to 63,000. No one can imagine the power of the bull. Then it rose to 74,000 and then plummeted to 60,000, opening a downward channel. The violent fluctuations have dealt a heavy blow to users who guess the top and bottom. We open the daily chart to look at the channel chart, and we can get a high-quality profit and loss ratio strategy based on the rule of holding if the rising channel is not broken and selling if it falls below.
Trade in batches to control risks
Regardless of which branch of finance you choose, true experts often choose to invest in batches. The secret of investing in batches is to control risks and capture opportunities. The market is changing dynamically. Entering the market at different price points not only increases the probability of capturing market opportunities. When the market pulls back, you can continue to buy to reduce costs. Investing requires patience, and entering the market in batches is a process of cultivating this patience. Don't rush for success. This patience will eventually translate into a more stable return on investment.
Technical index reference
In a healthy uptrend, volume should increase modestly and consistently as prices rise.
Volume shrinks and prices rise, exit decisively
When the price of a currency rises but the trading volume does not increase significantly, there is a divergence between buying and selling. This divergence may lead to insufficient momentum for price increases. If the trading volume does not increase, it may indicate that the upward trend lacks sufficient support and you should exit the market decisively.
The volume has not continued to expand and the moving average has not kept up
The moving average is an important indicator of market trends. If the short-term moving average fails to rise with the price increase, it may indicate that the market sentiment in the short term does not support further increases, and it is necessary to exit the market decisively.
The volume is shrinking and the box is oscillating. Short-term stocks run first, and the medium-term stocks look at the box
Box oscillation refers to the price fluctuating up and down within a certain range, forming a clear "box" or trading range. For short-term trading, box oscillation provides an opportunity to buy near support and sell near resistance. If you have already made profits during the process of heavy volume, you can consider locking in these profits during the box oscillation period, because in this case, the price is unlikely to have a large breakthrough. For the mid-line, box oscillation is a process of observation and waiting. They usually set a stop loss point. If the price falls below the lower boundary of the box, that is, the support level, this may indicate the beginning of a downtrend, and you should consider selling to protect your capital.
New K drops, falls below average price, rebounds without volume, and does not return to the moving average
If the recent K-line shows that the price has fallen sharply from the previous high, forming a "long black candlestick", this pattern indicates that the seller's power is strong and the market sentiment may turn pessimistic.
The average price line usually refers to the moving average within a certain period of time, such as the 5-day, 10-day or 20-day moving average. If the price falls below these moving averages, it may mean that the short-term trend has changed from rising to falling.
After a decline, if prices rebound but are not accompanied by a significant increase in trading volume, this may indicate a lack of buying and a lack of sufficient support to sustain the price increase.
If the price fails to regain its moving average during a rebound, it may indicate that selling pressure from above is strong and buyers are having difficulty driving prices up in a sustained manner.
