Many people trade BTC on Binance, either unable to hold onto profits or getting stuck in drawdowns. After a week of hard work, not only have they not made money, but they've also lost on transaction fees (pain point). However, with a simple swing trading strategy, I've been able to earn $80-120 every week for the past 3 weeks. Additionally, by sharing my strategy on Binance Square, I can earn an extra 5% trading rebate (comparison). In today's article, I will teach you the practical method of 'looking at indicators + setting stop-losses + seizing opportunities'. Once you learn it, you can use it and also earn double profits from content (value forecast).
1. First, look at 2 core indicators to determine the timing for entering BTC.
I don't use complicated technical analysis; relying solely on the two indicators 'MACD + RSI' can raise the entry win rate to over 60%. Specifically, look for these two conditions:
MACD indicator: Look for 'golden cross' signals.
Open the Binance APP's BTC/USDT 4-hour K-line chart. When the white line (DIF) of the MACD crosses above the yellow line (DEA) from below, forming a 'golden cross', it indicates a short-term rebound in trend. This is the first entry signal. For example, on October 28, BTC formed a golden cross around 26,200 USD, and in the following 3 days, it rose to 27,500 USD, yielding a segment profit of about 5%.
RSI indicator: Avoid the 'overbought' trap.
Also check the RSI (14) indicator. If the value is below 30, it indicates BTC is in an 'oversold' state, which means the risk of entry is low. If it is above 70, even if there is a golden cross, do not engage, as it is easy to chase high and get trapped. For instance, on November 1, BTC's RSI dropped to 28. Combined with the golden cross for entry, I earned 300 USD in just 2 days.
2. Set '1 stop loss + 1 take profit' to avoid earning and then losing.
Many people fail to make money because they do not control risks well. In my strategy, stop loss and take profit must be set in advance:
Stop loss: Run if you lose 5% at most.
For example, if entering at 26,000 USD to buy BTC, set the stop loss at 24,700 USD (26,000 × 5% = 1,300, 26,000 - 1,300 = 24,700). Once it drops to this price, the system will automatically sell to prevent further losses. I once tried not setting a stop loss, and the price dropped from 27,000 USD to 24,000 USD, resulting in an 11% loss.
Take profit: Sell when you earn 8%-10%.
Don't wait for the highest point to sell; just sell when BTC reaches the expected profit. For example, enter at 26,000 USD and sell at 28,080 USD (26,000 × 8% = 2,080, 26,000 + 2,080 = 28,080) to secure profits. Last week I used this method, bought at 26,500 USD and sold at 28,800 USD, earning 8.7%, which amounted to 102 USD.
3. Practical considerations: 2 common pitfalls I can help you avoid.
Don't use this strategy during a 'big market movement'.
If there are interest rate hikes by the Federal Reserve or major events in the cryptocurrency world (like ETF approval news), BTC prices will fluctuate violently, and indicator signals will become invalid. For example, in mid-October, when the Federal Reserve was hawkish, I didn't stop, resulting in a stop loss being triggered, losing 45 USD. Later, when major events occurred, I paused trading.
Check the K-line only once a day; avoid frequent operations.
At first, I checked the K-line over ten times a day, wanting to buy and sell at minor fluctuations, which resulted in losing transaction fees. Now, I check the 4-hour K-line once every night at 8 PM. If conditions are met, I enter; if not, I wait. I've saved a lot on fees, and my profits are more stable.
If you find this BTC swing strategy useful, click on the #BTC swing trading tips tag at the end of the article#BTC交易策略 $, which will take you directly to the Binance BTC trading page. Try operating according to the strategy; while you earn profits, I can also receive a 5% commission rebate. If you encounter any issues with understanding the indicators or setting stop losses, leave a message in the comments, and I will reply one by one. Also, feel free to like and follow for future sharing of SOL and ETH trading strategies.
BTC86,528.09-0.83%