Essential Moving Average Rules for Retail Investors (Reference)

1️⃣ Strong Bullish Candlestick: Takeoff Signal

Explanation: No upper or lower shadow, indicating strong bullish momentum, a surge in volume may start a new trend. Suggestion: Observe the following days' trading volume and candlestick patterns, confirm the trend before entering.

2️⃣ Strong Coins: Do Not Sell If Not Breaking the 5-Day Moving Average

Explanation: The 5-day moving average is a short-term strength indicator; a price movement along this line indicates bullish dominance. Suggestion: Hold firm on the 5-day moving average; if it breaks without signs of rebound, consider stopping losses.

3️⃣ High Pursuit Strategy: Take Profit at 5% High Open

Explanation: Pursuing highs is risky; a 5% high open on the daily chart is a good take-profit opportunity to avoid profit erosion. Suggestion: Take small positions when pursuing highs, set clear profit targets, and do not cling to positions.

4️⃣ Moving Averages Trending Up: Ideal Pattern

Explanation: Moving averages are parallel and trending up with steadily increasing volume, indicating a healthy and improving market. Suggestion: When moving averages are in a bullish arrangement, gradually increase positions and follow the trend.

5️⃣ Deviation from Moving Average: Risk Warning

Explanation: Straying too far from the moving average can easily lead to a pullback, increasing risk. Suggestion: Avoid chasing highs; wait for pullback opportunities near the moving average.

6️⃣ Trend Establishment: Let Profits Run

Explanation: Once a trend is established, minimal action is needed to achieve greater profits. Suggestion: Be patient with positions, and do not reduce positions unless the trend is broken.

📊 Summary

By combining moving averages, trading volume, and candlestick patterns, retail investors can effectively understand market trends, strictly execute plans, and seek stability while controlling risks.