Still continuing to make money from coins, there is a very dumb way to trade coins that allows you to maintain 'perpetual profit'!
Once you have an epiphany in trading coins, it feels like you've been given a cheat code, using just one trick: [Find five key levels, accurately grasp bottom fishing and peak escaping] to easily achieve hundreds of times profit (suitable for everyone).
An excellent sniper, from the moment you receive the task, you should start devising an overall plan.
For example, how to select sniping positions, understand the target task's habits and behaviors, what equipment you need, your entry route, your escape route, what you need to observe in the surrounding environment, the necessary camouflage, and how to patiently wait for the target to enter your firing range.
…
Thus achieving precise hunting! For an excellent trader, the most important thing is to find your sniping position, which is how to accurately find the main support and resistance levels?
This article gathers my years of trading experience. Although it is long, it is immensely valuable. For friends who want to learn technology seriously, I strongly recommend you read it thoroughly; you will feel as if you have gained a treasure.
1. Identify the five secrets of key levels.
How can we correctly identify key levels on a candlestick chart?
Remember the following five conditions.
The more contact points, the better.
There has been a strong reaction.
It is clear and easy to see at a glance.
Has been rejected multiple times.
Simultaneously acted as both support and resistance.
The above five conditions.
It does not need to meet all conditions to be called a key level.
But the more conditions satisfied.
Indicates that the position is stronger and more effective.
Next
I will gradually break down the above five points.
The more contact points, the better.
To prove whether a certain price is a key level.
There is a very simple method.
It is the number of times the market has been in contact.
In our daily life.
When you find a situation that keeps repeating.
Once or twice, you may feel it's just a coincidence.
But when this happens for the third or fourth time.
Do you feel this matter is quite suspicious?
It seems that there is a purpose to this matter, a reason for it to happen.
The same position.
At different times.
The price has failed to surpass this position several times.
Has faced resistance or support at this position.
Then we will doubt a matter.
This position is significant to the market.
Is there a special significance to its existence?
Is this position a very key position?
Is this year's high and low?
In summary.
A position has had one or two reactions.
It might just be a coincidence.
But when this happens frequently.
The probability of it being a key level will be much greater.
There has been a strong reaction.
We know that history always tends to repeat itself.
If the price passes a certain position.
If there has not been a strong reaction.
Then how can we have a reasonable expectation?
Expect the price to reflect significantly at the same position in the future?
The market is actually like humans.
All have memories.
But we usually only remember some deeply impressive things.
For example.
I remember that day BTC dropped by 5000 points.
But.
I will not remember the day ETH rose by 50 points.
Everything is based on a concept.
That is a reasonable expectation.
When the market returns to a position that previously surged or plummeted.
We will have a reasonable suspicion that the price history will repeat itself.
To make a significant reaction at the same position again.
And that significant reaction is our profit space.
And within this position.
Actually, many investment institutions' orders have been secretly laid out.
When the price returns to this key level again.
There will be opportunities to trigger their orders.
As retail investors.
If the views of institutional investors temporarily align with this position.
The price will quickly head in the direction you desire.
Stay away from your stop-loss.
Move towards your profit-taking target.
As the saying goes.
"Follow the dealers, bull markets are every day."
This is exactly why I have worked in finance for many years.
One of the learned dealer's mindsets.
It is clear and easy to see.
A good key level.
One condition is that it must be very clear, very definite, and easily visible at a glance.
If one day.
When you open a chart.
You find a position that seems to be a key level.
Or so it seems?
You saw the price trying to meet resistance there.
Or support.
The price seems to have reacted.
But if the reaction is not too large.
I advise you to abandon this position immediately!
Immediately! Right away!
Because even if you barely find a reason.
Treat this as a key level.
Your confidence in this position has unconsciously been affected.
Why?
Because when a trading signal truly appears.
You will certainly hesitate.
It will greatly influence your trading decisions.
Even if you really entered the market.
As long as the price line moves slightly in the opposite direction.
You will be very afraid.
Even if there is a strong WeChat account.
Prompted you to make this trade.
You are likely to self-doubt this position.
And gave up too early on the truly key level.
Causing you to exit early.
Then you have abandoned the originally planned trading strategy.
This trade will end in failure.
Then you will lose the principle of consistency.
The market is not lacking trading opportunities.
In the cryptocurrency market, there are more than 200 currency pairs for you to trade.
There are also different foreign exchange, futures, and securities products.
I have never been afraid of missing entry opportunities.
What I fear most is not following my own trading plan.
Entering the market with insufficient confidence.
Speaking of this.
It also involves trading mindset.
I will also organize and write some articles on trading psychology in the future.
At that time, I will explain it in detail for everyone.
Friends interested, remember to scan the QR code at the bottom of the article to follow.
You will receive a notification at the first moment.
Can help you effectively avoid losses.
Has been rejected multiple times.
When we pursue girls.
The most painful thing is not being rejected by the desired target.
But is crazily rejected by the desired target.
……
The reasoning for finding key levels is the same.
We need to find the market's pain points.
We would hope to see a certain position.
Has been many times at different times.
Or continuously showing signs of rejection.
This reaction repeats each time.
We will have more opportunities to enter.
In simple terms.
You will see the candlestick generating near this position.
A long upper or lower wick or several long wicks.
Every time the price is rejected, it will move in the opposite direction.
Means the price has declared its intentions to the market many times.
Once risen or dipped multiple times.
But all have been rejected by the market.
Immediately pulled back by opposite forces.
This situation.
Indicates that there is strong power guarding this position.
Every time this situation occurs.
Especially when the daily price successfully breaks through this area.
We all regard this as a powerful and effective key level.
Simultaneously acted as both support and resistance.
In the world of trading.
There are no eternal friends.
There are no eternal enemies.
We would hope to see a situation.
Yesterday's support has turned into today's resistance.
Or the resistance level from yesterday becomes today's support level.
Every time the price breaks through past resistance.
Often, it will return to the same position for another rebound.
And if the price shows signs of being rejected at this time.
This represents yesterday's resistance turning into today's support.
This situation also represents that this position has considerable status.
Both the black and white roads will give face to him.
That is, both bulls and bears have once held this position.
Every time we see a certain position.
Simultaneously acting as both support and resistance.
We can determine it is a key level.
Most likely, it cannot be wrong.
After explaining the five conditions for key levels.
Next, I will explain five applications.
Many coin enthusiasts make the same mistake.
And some practical tips for everyone.
Second, five erroneous demonstrations of finding key levels and how to avoid them.
Five erroneous demonstrations of finding key levels and how to avoid them.
Too many lines.
Rushed entry.
It is an area, not a line.
The range is too large.
Larger cycle charts are more accurate.
Too many lines.
In the application of finding key levels.
The first common mistake.
That is to draw a line for every so-called support or resistance seen in all charts.
The more lines you draw.
It does not mean that your trading opportunities are increasing.
Does not mean the money earned will be more.
Because most of the lines you draw are just market noise.
Based on the five conditions mentioned earlier.
Many of these are not qualified key levels.
If you make the chart look like this.
In the end, it will only confuse us.
Affecting our trading decisions.
Everyone should know a principle.
The basic points for viewing charts are to keep the charts simple and clear.
Ensure we can clearly see price action.
What we primarily want to see is the price's reaction.
If too many things cover the candlestick.
Causing us to be distracted or hesitant.
This is definitely putting the cart before the horse.
So we only need to focus on the most obvious and important.
And the closest main support and resistance levels to us will do.
Rushed entry.
The second point is rushed entry.
We will use a real trading example.
When we find a key level (as shown in the picture).
We saw the last time the price touched this position, it reacted strongly downward.
Thus the price returns here again.
Never think that the price will fall down again.
Immediately enter a short position.
Doing this has a great chance of suffering painful lessons.
As mentioned before.
There are no eternal enemies in the world.
Moreover, there are no eternal friends.
Yesterday's resistance level can definitely become today's support level.
Key levels are actually points of market balance.
Both bulls and bears want to break through or hold their ground here.
Thus, both sides' forces usually encounter at this position.
What we need to do is wait for the market's conflict outcome.
Observe the price's reaction to this position.
Decide whether to enter based on the traces left by both sides' encounters.
Why enter the market?
When to enter the market?
When to exit?
And a series of trading plans.
In simple terms.
The best practice is to wait for a trading signal as confirmation.
You just entered the market.
And this signal can be a technical indicator.
Can be chart patterns.
Can be a candlestick pattern.
It can even be fundamental analysis.
There are thousands of different combinations that can serve as trading signals.
Due to limited space.
I cannot cover everything in this article.
So this matter will not be explained in detail today.
I will only summarize two or three trading signals at the end of this article.
The future.
I will target different entry signals.
Write more detailed articles respectively.
Friends interested, remember to follow me.
Do not miss out.
It is an area, not a line.
Let's continue explaining the third erroneous application.
That is the true key level.
It should be an area, not a line.
Although the market will continuously repeat history.
But the process within will never be 100% the same every time.
Moreover.
The cryptocurrency market.
Since its inception.
Less than 10 years.
The market cycle is like the circle drawn in the above diagram.
Every circle will have some different variations.
It is difficult to draw exactly the same circle.
It's not because I did it intentionally.
But the market contains too many uncertainties.
Although the results are similar.
But it is unlikely to fully replicate the last process.
Using this as an example.
The price goes to this position for the second time, showing signs of rebounding again.
When it returns here for the third time.
Based on your analysis.
You decide to enter.
Place the stop-loss at the height of the last retracement.
But today, the price has chosen to test further downward.
Directly hitting your stop-loss level.
If you draw this key level as an area.
This way, your stop loss will become here.
Then your trade will succeed.
And bring you rich profits.
The difference between a successful and a failed trade.
It is just a slight area.
Draw the key level as an area.
Can help us avoid many failed trades.
It can also cause the price to hit our profit-taking point.
This is the direction we want.
The chance of unexpected exit is greatly reduced.
I believe those who see this.
Those who trade contracts should deeply feel this.
Even though the big trend has not changed.
Still developing according to your expected trend.
It is because of that damned needle.
Got liquidated.
The range is too large.
Sometimes we find.
The drawn key level area can be quite large.
This situation.
Especially in large ranges, the probability of occurrence is higher.
As shown in the figure.
A trading signal appears within the candlestick.
Generally, a signal appears at this position.
There are already sufficient reasons to enter a trade.
But because we drew the range here too large.
It will cause us some hesitation.
Is this candlestick pattern effective?
A too large area will make us feel confused.
Even when there are clear signals.
But there will be some unnecessary troubles.
Causing us to waver and miss opportunities.
When this situation arises.
We can connect as many body points as possible.
Try to narrow this area down to a reasonable range.
And ensure connecting to at least three contacts.
This will clarify the entire event significantly.
Larger cycle charts are more accurate.
Larger cycle charts are more accurate.
You may have heard of it.
The larger the time frame, the more accurate.
Actually, the logic within is very clear.
If a matter takes more time to brew, plan, and prepare.
Its success rate will definitely be higher than in a very short time.
The things that happen spontaneously can be much more intense.
Finding key levels is the same principle.
Always start from the larger time frames.
Here.
I will share a technique I have honed over many years.
This was taught to me by a famous institutional trader.
From the weekly chart.
To the daily chart.
Then go to the four-hour chart.
1-hour chart.
Layer by layer, it goes down.
To analyze each currency pair.
Always start from the larger time frames.
Draft the trading plan for the upcoming week.
When you know the market's major trend.
Your chances of standing on the right side.
Naturally, it will also increase significantly.
If you are someone with limited trading experience.
I suggest you start with the larger time frames.
For example, when the daily chart or even the weekly chart starts.
First, establish your confidence in trading.
Then slowly try smaller time frames.
Third, let you operate on the spot, find the main support and resistance levels.
Finally, I have finished discussing these five conditions for defining key levels and five application errors and secrets.
Everyone may feel that what I just said is somewhat subjective.
It is difficult to have clear, quantifiable conditions to define.
For example.
How many rejections count as many? How many are considered effective?
How many rejections are needed to count as more? What counts as effective?
If you also have this question.
Congratulations!
Your understanding ability is amazing!
You are likely starting to absorb this concept and digest it.
This is also the reason why I categorize this course as advanced technical analysis.
Indeed.
The matter of key levels is very subjective.
Including all technical analyses of price action.
Show the same chart to different people.
The results obtained may not be the same.
So the only way is to backtest yourself.
Practice more, observe charts.
Action is better than intention.
Next.
I will take you to look at a few examples.
Immediately practice what you just learned.
OK!
Before looking at chart examples.
I will first teach you how to draw a key level.
Step 1.
We draw a line to indicate where most candlesticks contact.
And this line will follow a principle:
That is, the body is more important than the wick.
Why?
Because we need to focus on the price at the end of the candlestick.
That is the result.
And the meaning of the wick is that it has once.
And not the result.
Step 2
Draw an additional line above and below that line.
The goal of these two lines is to touch the candlestick as many times as possible.
Whether it is a body or not.
Whether it’s the wick.
Step 3.
Delete the middle line.
This way, you will come up with a preliminary key level area.
If the range of this area is too large.
You can use the secret I just mentioned.
Adjust based on the principle of connecting to the most contact points.
Remember a principle.
The body is more important than the wick!
If there is a conflict between the body and the wick.
We will choose to sacrifice the wick!
Next.
We officially start looking at some chart examples.
The first candlestick chart.
Guess where the key level is?
Does it satisfy several conditions at the same time?
That's right!
That’s it!
First, we draw a line.
Try to make it touch more bodies.
Then draw a line above and below.
Draw an additional line each.
Form a draft.
Finally.
Let's make a slight adjustment.
This area is the key level.
Do you see this position crossing the line?
For us.
It can actually be accepted.
Because the market is usually not perfect.
It is unlikely to resemble those drawn in some books.
There is an identical pattern occurring.
As long as that flaw is not too significant.
It will not affect its qualification as a key level.
Finally.
Let's see how many conditions this key level satisfies.
It is obvious.
This position satisfies three conditions.
The first.
It must have at least three contacts.
Second.
We have all seen that the price has reacted strongly before.
The third.
It has simultaneously acted as both support and resistance.
Alright, let's seize the moment.
Next, let's look at the second candlestick chart.
Let's try to find key levels together.
Still the same drawing method.
Step 1.
Draw a line.
Try to connect all the bodies.
Step 2.
Draw an additional line above and below it.
This way, we find a preliminary key level.
Step 3.
Let's make a slight adjustment.
This key level satisfies four conditions.
First, it has more than three contacts.
The second is this position is clearly visible at a glance.
The third is that there has been a strong reaction more than once.
Fourth, we analyze candlestick patterns.
It has been rejected multiple times.
Good.
Things do not happen three times!
Let's do the last set of exercises.
This chart looks a bit challenging.
First, we draw a line.
Try to touch all the bodies.
Then draw a line above and below each.
OK, here comes the question!
Here again is a situation of crossing the line.
What to do?
Here I will define it as a false breakout event.
I will explain the false breakout later.
Generally, my practice is to ignore this false breakout.
Because I do not want the area to be too large.
I emphasize this many times.
The matter of key levels is very subjective.
Every chart can be viewed from different angles.
What you need to do is believe in yourself.
The article I'm writing today.
Lead you into the door of advanced technical analysis.
But.
This matter cannot be simply addressed in one article.
You can fully understand.
To achieve a thorough understanding.
You must rely on yourself to spend time to understand.
To observe, to try.
Actually, it does not only refer to key levels.
The world of trading is the same.
There are countless ways to make money.
As long as you have tested and verified it yourself.
Or firmly believe it is feasible.
Then it is valid.
Believe in yourself.
Any matter.
When you reach the extreme, you will succeed.
Do not let someone's few words waver you!
Alright.
Let's continue.
This is a very powerful key level.
It satisfies four conditions at once:
Its number of contacts exceeds three consecutively.
It has acted as both support and resistance.
There has been a strong reaction before.
It has also been rejected multiple times.
Fourth, how to respond to market reactions after key levels: trend reversals, breakouts, and sideways oscillations.
First: Trading is time-sensitive.
The cryptocurrency market is rapidly changing.
Even if I have already told you the accurate entry point.
But if the subsequent trend does not develop as I expect.
I need to tell you to close your position immediately.
From writing.
By the time of publication.
Then to review.
Then you pick up your phone.
……
Too many uncertain factors in the middle delay timing.
The second: Challenging human nature is difficult.
Humans are greedy.
Including myself.
Many people clearly could have made profits during trading but didn’t.
But it’s because they feel the profit is too small.
If you earn 5%, wait for 10%.
Wait for 50% after reaching 10%.
Really waiting until it reaches 50% and then wanting to double to 100%.
Results.
A waterfall down.
Directly turned into -30%.
Finally.
See things not going well.
Decide whether to close the position while losing a little.
I believe such things happen every day.
So.
I let you set the profit-taking.
Take some profit and run.
Planned trading.
Few people can achieve this.
If you made a profit, that would be great.
You may appreciate my contributions.
If you lose once.
Then I have to bear the title of a master deceiver.
Although the truth is.
In 100 trades.
I made you profit 99 times.
Only lost this one time.
This is human nature.
The third: I don't know you.
My sharing is purely a hobby.
I have already achieved financial freedom through the crypto circle.
I do not need to prove anything to anyone.
I have no need to help others make money.
Applied pressure onto oneself.
Did you make money?
What does that have to do with me?
How much do you want to earn?
What does that have to do with me?
Fourth: Teaching a man to fish is better than giving him fish.
This is also the most important reason for my writing and sharing.
It is also the original intention for me to create this Zhihu account.
Back then, Mr. Lu Xun abandoned medicine for literature.
Claiming that studying medicine cannot save China.
Because I want to improve my health.
First, improve mental health.
Nowadays as well.
People from all countries continuously aid Africa.
Donate money, donate items, donate people...
More and more each year.
But finds that the more they donate, the poorer they become.
I believe you in front of the screen are also a sufficiently intelligent individual.
Because those who can understand the crypto market and dare to dive in.
You will definitely be among the elite in this society.
In summary.
I hope you can learn the knowledge and imprint it in your mind.
Having parents is not as good as having yourself.
Because the trading market is the industry with the fastest technical realization.
You only need two months.
Then you can master the techniques.
Then practice more and backtest.
Summarize your own experience framework.
In the end, you can make money.
Make a lot of money.
Alright!
I've strayed a bit far!
Come back!
Let us tidy up our mood.
In summary.
Next, I want to talk about.
Its value is definitely greater than a trading strategy.
And some of this knowledge is something that even paid courses may not teach you.
Let's continue!
Usually, the price passes through a key level.
You will mainly see three results.
Respectively.
Trend reversal.
Breakthrough.
And sideways oscillation.
We will start with trend reversals.
Generally speaking.
There are three signs.
It will let us know that the price is starting to change direction.
Allowing for a significant opportunity for trend change.
First.
The price shows signs of being rejected.
The most typical example is the candlestick pattern.
Shooting star or hammer candlestick.
The meanings within have been mentioned before.
That is, the price has once probed upward or downward.
But it was soon pulled back by the opposing force.
It is a very classic and simple effective reversal candlestick pattern.
Besides patterns like the shooting star.
We can also use simpler methods to assist in our identification.
That is the RSI indicator.
Don't think that things like shooting stars or RSI indicators are useless.
Any candlestick pattern, chart pattern, technical indicator.
As long as it happens at a position of a key level.
Its accuracy will be greatly improved!
Let's look at some examples.
Let's see how this looks within the key level.
The price once attempted to probe upward.
Attempt to break through the resistance level.
But soon, opposing forces emerge.
The candlestick has formed a shooting star pattern.
Even the opposing forces are increasing.
Is it stronger than the upward breakout force?
Ultimately leading to a complete trend reversal.
Then look at another opposite example.
We see.
When the price enters a key level.
The upward force is starting to appear.
We see a long lower wick below the body.
That is the inverted hammer candlestick pattern.
This long wick represents the downward center of gravity here.
It also means that the downward force has lost its control.
Until the candlestick closes.
Cannot continue to go down.
When both forces lose balance.
The price naturally moved in the direction of the one in control.
Of course.
The RSI indicator can also serve as an entry signal.
Let's see how the actual situation is.
When the price reaches the key level.
And the RSI indicator has risen above 70.
It means the market is in an overbought state.
Also, this is a selling model.
When the RSI lights up a signal at a key level.
Indicates that the current trend is about to change.
Or at least need to retrace downward.
Naturally, it’s better to be at a significant position rather than a random unimportant position.
The success rate of the signals produced will be much higher.
So you must remember.
All technical indicators and.
Candlestick patterns should not be used in isolation.
Many friends have lost badly because of this.
All trading signals must find a consensus point.
It can be different patterns, technical indicators combined with chart patterns, chart patterns combined with candlestick patterns, support and resistance levels, trend lines, or fundamental analysis.
This way your trading win rate will be higher.
Financial trading is a game of probability.
Whether you are trading options, U.S. stocks, or cryptocurrencies.
You need to understand this matter.
Thereby having a chance to survive.
This matter is definitely the dividing line between successful and failed traders.
Having finished the first one.
Next, let’s talk about the next two.
The next two concepts will be a bit more complex.
Because it cannot be seen at first glance.
But rather trade through observing price action.
Because the candlestick itself can show some signs.
Let's discover how great the opportunity for trend reversal is.
The first one.
It is to observe how the price approaches the candlestick.
Let's take a look at this example.
We see the candlestick approaching the resistance level.
Each one smaller than the last.
Represents that the upward force is starting to weaken.
Also hinted at behind.
The buyers have a consensus that:
OK! Listen up, brothers! We are almost done here; it is not worth pushing further up; just pretend to do it!
When the market shows reversal signals.
The price will immediately start to fall.
An opposite example.
When approaching the main support level.
The candlestick will definitely become smaller and smaller.
The downward force is gradually weakening here.
Then rebound.
The second.
The number of retracements is increasing and becoming more frequent.
Let's look at this example.
When the price goes up.
Started off very smoothly.
When approaching the key level.
The number of retracements is starting to increase and become frequent.
And we see the price starting to lack direction.
Narrowly hovering up and down.
What does this imply?
This is the appearance of opposing forces!
They form a fierce competition here.
Although we see that buyers still have control for the time being.
But it feels like it's about to fall apart.
Even when approaching the key level.
Which is the profit-taking point for buyers.
The price immediately reverses.
We have finished discussing trend reversals.
Next, let's look at breakouts.
About breakouts.
Be sure to remember two things.
First.
Do not immediately enter a trade when the price returns to the key level.
Second.
This position is the battleground for bulls and bears.
Both sides would want to break through or hold their ground here.
So this position often has false breakout situations.
Many impatient coin enthusiasts stand firm only with one candlestick above the area.
Then determine that this breakout is successful.
But the entire battle did not break through.
If the next body line's force is stronger than the breakout line.
Then these impatient traders will be trapped.
The price will continue to move in the opposite direction using their stop-loss points.
This is called a false breakout.
Let's look at an example of a false breakout together.
When the price breaks through key levels.
Immediately a larger opposite candlestick appears.
It trapped a group of traders who immediately entered the market upon seeing a breakout.
Then the price will fall down using their stop-loss points.
Let's continue to observe.
An example of downward falling.
The price breaks downward after hitting the key level.
Immediately a stronger bullish candlestick appears.
It similarly trapped a group of coin enthusiasts who saw the breakout and entered here.
At this point, the buyers officially enter the market.
The sellers give up resistance.
The price continues to rise smoothly.
Avoid false breakout traps.
The best method is to wait until after breaking through the key level.
Wait for the market to help you retest.
Check if yesterday's resistance has turned into today's support.
Or check if yesterday's support has turned into today's resistance.
And then enter.
So how to operate in real trading?
At this time, it is necessary to retest this concept.
When the price line breaks through the resistance level.
We hope to see the market return here again.
Retest it.
We see the lines of the bodies.
The sellers once attempted a last resistance.
But soon pulled back by the opposing force.
And the wick of this candlestick is a retest.
Test whether the sellers are powerless.
Must compromise.
This position has obviously become today's support.
At this time.
We can wait for those big players to distinguish the winner.
Distinguish the true winners.
Boldly follow behind the big players into the market.
The last situation is sideways oscillation.
Sometimes, when the price line reaches the key level.
Both sides compete back and forth.
Both bulls and bears are in sync, temporarily forming a balance within a range.
At this time, there are two reasons that we should not intervene.
First of all, the profit space during a narrow oscillation process is too small.
It does not provide a satisfactory profit-loss ratio.
Second.
As traders, we never guess which direction the price will break through.
Will only wait until the market distinguishes the winner.
Only then can we make judgments about market trends.
We need to be qualified trend traders.
And not directionless speculators.
That would be akin to gambling!
When the market is in a sideways oscillation.
When there is no clear direction.
What should we do to qualify as such?
How to prepare for future trades?
Here’s a secret to share.
We divide the sideways oscillation area.
Draw a rectangular chart.
If we see the price lingering above the recent candlestick positions.
This situation means that the buyers are storing power.
Prepare for an explosion.
We can formulate a trading plan based on this prediction.
Prepare to enter the market.
On the contrary.
If you see the price lingering in the lower half of this area.
There is a bearish force that is storing strength.
Of course.
Today's breakout may fail.
Be careful of the emergence of false breakouts!
In the crypto circle, manage positions well.
Then you will surpass most people.
Next, I will introduce two methods of position management:
1. Left-side position management 2. 3.5.
1) Do not shoot all your bullets at once; buy in batches.
(2) You can divide your funds into several parts; when unsure about the bottom, buying in batches is the most suitable method to average the cost.
(3) The additional position should be flexibly adjusted according to market changes; do not add too frequently, as that has a negative effect on averaging the coin price. The initial percentages of 20%, 30%, and 50% are suitable for aggressive investors who are keen on bottom fishing.
(4) The initial entry capital is relatively small; if the coin price does not rise and continues to fall, gradually increasing the position, with the proportion of added positions becoming larger, thus averaging the cost. This method has relatively low initial risk, the higher the funnel, the more considerable the profit.
2. Right-side position management 3. 3.2.2
1) Buy 1: When the 5-day moving average crosses above the 10-day moving average, increase the position by 30%.
(2) Buy 2: The coin price effectively breaks through the lifeline, and when it retraces to the lifeline, continue to increase the position by 30%, ensuring that the total position reaches 60% in the early stage of the upward trend.
(3) Buy 3: Breakthrough the neck line or other important resistance levels, and after another retracement stabilizes, it indicates that the reversal upward pattern is established, and increase the position by 20% again. The total position should reach 80%, holding the coin and waiting for a rise.
(4) Buy 4: When the coin price is above the lifeline and the 5-day moving average crosses the 10-day moving average again, it is a typical signal for accelerating upward. At this time, the remaining 20% of the position should also be bought timely to maximize profit.
Strong rebound, profits doubled! Follow BiaoGe to layout in advance, win at the starting line.
Continue to follow: REI, KERNEL.