"How do I determine support and resistance? Why does the best entry point always seem to pass me by?"
As an experienced crypto trader for 6 years, having faced more pitfalls than you have seen in K-lines, I am constantly pursued by fans asking these soul-searching questions. In fact, what complex skills are needed to enter the market? My tried-and-true method consists of just 6 steps, which may seem 'mechanical,' but it has helped me transform from a follower into a consistently profitable strategist. Today, I'm sharing my core insights; for those who take a serious look, you'll have a solid foundation for your next market entry!
First, I need to clarify my core viewpoint: in the crypto market, 'precision' is always more important than 'aggressiveness'; trends are always more reliable than 'low prices.' Those who try to make money by 'guessing bottoms' or 'betting on rebounds' are, to put it bluntly, just providing the market with easy targets. The ones who can achieve long-term profits are those who execute simple logic to the fullest.
Step one, filter active assets: only focus on quality assets that have had market movements.
Every day at the opening, I first look at the gainers list, and I only add assets that have shown significant fluctuations and upward movements in the past half month to my watchlist. Why? Those without fluctuations are 'zombie assets'; even if you wait for half a year, it's highly likely they will still be stagnant, wasting time and occupying capital. Assets with a record of upward movements inherently have market attention, and the probability of them starting up again is 10 times higher than 'dead water assets.' This step directly helps you filter out 80% of junk opportunities.
Step two, relentlessly pursue the monthly MACD golden cross: the trend is the 'calming pill' for profits.
I never believe in those flashy indicators; I only focus on one thing when watching the market — whether the monthly MACD has formed a golden cross. This is the iron rule I have believed in for 6 years of practical experience: a golden cross is the signal that establishes a trend. Those who blindly enter the market to bet on a rebound before a golden cross are essentially engaging in gambling; I have long removed such operations from my trading checklist. If you want to make stable profits, you must follow the trend; going against the trend has only one outcome: being trapped to the point of questioning life.
Step three, wait for the daily line to bounce back to the 60-day line + volume increase: don't enter the market without this signal.
I have turned off all the various miscellaneous lines on the daily chart; the only line I focus on is the key one — the 60-day line. My principle is: don’t look unless the coin price has retraced to near the 60-day line, and if it retraces without an increase in volume, don’t touch it. Many newcomers always think that 'below the 60-day line is cheaper,' rushing in desperately, and the result is either being trapped or stepping into a big pit. Remember: the 60-day line is the 'lifeline' of the trend; the 'low prices' below it are traps, and a volume-increased retracement is the market's entry signal.
Step four, don’t cling to your positions: a gambling mentality is a 'stumbling block' to profits.
After entering the market, don’t think aimlessly; hold on as long as the signal hasn’t broken. Once it falls below a key support level, don’t hesitate, leave immediately! I’ve seen too many people go from a 10% profit to a 20% loss, all because they were caught in the 'just wait a bit' and 'maybe it will rebound' mentality. The crypto market changes faster than flipping a page; being vague when it's time to take profits or stop losses is just leaving opportunities for losses.
Step five, take profits in batches: don’t fantasize about 'eating the entire segment of the market.'
My profit-taking rule has never changed: when profits reach 30%, I sell half of my position, and when it rises to 50%, I sell everything. Some say, 'This way you'll miss out on further market movements,' but I want to say that the market never leaves all the profits for one person. Being able to capture the most stable part of the middle has already outperformed 90% of investors. Accumulating small profits is much better than being greedy and ending up losing everything.
Step six, breaking the 60-day line must stop-loss: this is the iron rule that has saved me countless times.
Whether you just entered the market two days ago or have held for a week, as long as the coin price effectively falls below the 60-day line, regardless of profit or loss, leave the market immediately! I have followed this rule for 6 years, avoiding countless major drops and saving me several positions that were 'on the verge of losing everything.' Being soft-hearted is just digging a pit for yourself. In the crypto market, only those who can strictly stop losses deserve to have the qualification for long-term profits.
Some say this method is too 'rigid,' but I want to say that the more emotional people are in the market, the faster they fall! Those who enter the market based on feelings and hold positions based on emotions end up blowing in the wind at the peak. The true skill for making money has never been a complex formula; it’s the execution power to carry out simple logic to the letter.
Six years of practical experience has taught me that investing in crypto is not about luck; it’s about discipline and vision. Follow my rhythm, avoid unnecessary pitfalls, accurately enter the market, and steadily take profits; isn’t that better than blindly following the crowd?
Follow me! I will share 'how to accurately judge support and resistance strength' and 'details and techniques for taking profits and stop losses' later, all practical tips. If you miss it, you’ll lose a lot! Next time, let’s talk about topping out techniques that allow you to both earn and secure profits; see you in the comments section~
