To succeed in the cryptocurrency market, a systematic trading strategy is required. This article will introduce a comprehensive approach that covers all aspects from coin selection to position management.
First, selecting the appropriate trading targets is crucial. We recommend focusing on cryptocurrencies that show a golden cross on the weekly MACD indicator below the zero line, along with a significant increase in trading volume. Additionally, looking for cryptocurrencies that have broken out after at least 3 months of consolidation at the monthly level is also a good strategy. To reduce risk, it is advisable to focus on projects ranked between 50-200 in market capitalization, avoiding overly speculative targets.
When determining the timing to buy, you can pay attention to several key signals on the 4-hour chart: a sudden expansion after the Bollinger Bands constrict, K-lines consistently standing above the EMA21 moving average, and the RSI indicator forming a double bottom divergence. When these conditions are met, you can gradually build your position at the Fibonacci retracement levels on the 1-hour chart.
Position management is equally important. It is recommended that the initial position does not exceed 5% of the total capital, and to moderately increase the position after making a profit. At the same time, maintain sufficient cash reserves to cope with market fluctuations. In addition, maintaining a balanced allocation of funds among different types of projects also helps to diversify risk.
The stop-loss strategy is key to protecting funds. A trailing stop-loss method can be used to gradually raise the stop-loss level as profits increase. At the same time, set time-based stop-loss and related stop-loss to cope with various market situations.
Finally, maintaining a good trading mindset is also very important. Avoid over-focusing on the market, and regularly adjust and review your investment portfolio, as these all help to improve the success rate of long-term investments.
Remember, the cryptocurrency market is highly risky and volatile, and investors should act cautiously and manage risks properly.
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HashBandit
· 10-07 14:52
lmao back in my mining days we didn't need these fancy indicators... just raw hashrate and prayer tbh
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MetaverseLandlord
· 10-07 14:51
Everything requires strategy; making money is the top priority.
To succeed in the cryptocurrency market, a systematic trading strategy is required. This article will introduce a comprehensive approach that covers all aspects from coin selection to position management.
First, selecting the appropriate trading targets is crucial. We recommend focusing on cryptocurrencies that show a golden cross on the weekly MACD indicator below the zero line, along with a significant increase in trading volume. Additionally, looking for cryptocurrencies that have broken out after at least 3 months of consolidation at the monthly level is also a good strategy. To reduce risk, it is advisable to focus on projects ranked between 50-200 in market capitalization, avoiding overly speculative targets.
When determining the timing to buy, you can pay attention to several key signals on the 4-hour chart: a sudden expansion after the Bollinger Bands constrict, K-lines consistently standing above the EMA21 moving average, and the RSI indicator forming a double bottom divergence. When these conditions are met, you can gradually build your position at the Fibonacci retracement levels on the 1-hour chart.
Position management is equally important. It is recommended that the initial position does not exceed 5% of the total capital, and to moderately increase the position after making a profit. At the same time, maintain sufficient cash reserves to cope with market fluctuations. In addition, maintaining a balanced allocation of funds among different types of projects also helps to diversify risk.
The stop-loss strategy is key to protecting funds. A trailing stop-loss method can be used to gradually raise the stop-loss level as profits increase. At the same time, set time-based stop-loss and related stop-loss to cope with various market situations.
Finally, maintaining a good trading mindset is also very important. Avoid over-focusing on the market, and regularly adjust and review your investment portfolio, as these all help to improve the success rate of long-term investments.
Remember, the cryptocurrency market is highly risky and volatile, and investors should act cautiously and manage risks properly.