After a few years in the circle, I've seen too many people stubbornly sticking to MACD and KDJ, neglecting the most valuable thing—moving averages.
In simple terms, seasoned traders get cut because they interpret the charts incorrectly. $ZEC
5-day moving average: The lifeline for short-term trading. $CVC
Once it rises, it's like riding the wind; if it breaks down, you must run immediately. Short-term trading is about heartbeats; if you don’t run, you get zapped.
20-day moving average: The thermometer of market sentiment. $TA
If it goes up, the main force is still there; if it slides down, risks are approaching. Last year's wave in new energy left countless people confused by this line and severely impacted.
250-day moving average: A mirror to reveal the truth.
Breaking below the annual line may seem cheap, but it's actually a flat tire; the more you buy, the more it leaks, eventually leading to a breakdown.
Practical mantra: Weekly golden cross, moving averages in a bullish arrangement—blindly buying is still more accurate than random guessing.
Monthly dead cross + reduced volume—bottom fishing is like walking on a tightrope.
Don't be superstitious about magical parameters; the ones who truly make money are doing subtraction.
