Six steps to accurately identify support and resistance! Precise entry without pitfalls, stable profit has its methods.
People often ask: how do you judge support and resistance?
Where is the best entry point hidden? In fact, I rely on six steps of mindset to avoid countless traps; it's not complicated to implement!
Step one: filter active targets from the gainers list.
Every day, first check the gainers list, adding cryptocurrencies that have shown significant fluctuations and upward trends in the past half month to your watchlist.
Cryptocurrencies with a history of price increases come with popularity, and only then do they have the potential to start up; this filtering can precisely lock in high-quality targets, avoiding wasted efforts.
Step two: closely monitor the monthly MACD golden cross.
I don't use complicated indicators; I only look at whether the monthly MACD level has a golden cross.
The golden cross is the signal that establishes the trend; the gambler's operation of bottom fishing for rebounds has long been discarded by me. To achieve stable profits, one must closely follow the trend.
Step three: wait for the daily chart to pull back to the 60-day line with increased volume.
Ignore all the miscellaneous lines on the daily chart; only wait for the price to pull back near the 60-day line and show signals of increased trading volume before entering.
Many people insist on chasing low prices below the 60-day line, resulting in either being trapped or liquidated; the risks are simply too high.
Step four: do not be attached to positions. Hold as long as the signals are intact, and once the key support line is broken, exit immediately without hesitation.
Too many people turn profits into losses, losing due to the luck of waiting a little longer; one must be decisive when it's time to take profits or stop losses.
Step five: take profits in batches.
When profits reach 30%, sell half, and when it reaches 50%, clear the remaining position.
Don't always think about capturing the entire segment of the market; the market will never leave all profits to one person. Small profits accumulate to become significant gains, allowing you to go far.
Step six: stop loss if the 60-day line is broken. This is a hard rule!
No matter if you just bought or have been trapped for several days, as long as the price drops below the 60-day line, exit immediately without mercy; this rule has saved me countless times.
Some say this method is too mechanical, but the more emotional people are in the market, the faster they stumble.
The six steps themselves are not magical; the real key is unwavering execution.
Most people are stuck in a vicious cycle, not due to lack of effort, but lack a guiding light.
The market is often there, but opportunities do not wait for anyone - follow Yi Ge, and I'll help you steadily reach the shore!
