If your account balance is less than 1 million and you want to profit in the cryptocurrency market in the short term, there is a tried-and-true 'MACD trading method' that is simple and practical, making it easy for retail investors to get started. Don't worry about not being able to learn it; I'm not a god, just someone who has mastered the method. Once you learn it, pay attention during trading, and you might earn an extra 3 to 10 points every day.
Chen Xi shares a set of practical strategies from years of experience, with an average win rate of 80%, which is rare in the cryptocurrency market. The MACD trading method is essential for short-term fluctuations and is also applicable to contracts, with monthly profits reaching 30%-50%.
Market Meaning:
1. Double Moving Averages
Position: Bullish above the 0 axis, bearish below; crossing above and below the 0 axis determines the overall trend.
Crossover: Small cycle signals are many, not used alone.
2. Volume Pillar
Bull-bear dividing line: Above the 0 axis is bullish, below is bearish.
Bullish trend: The volume pillar above the 0 axis changes from small to large, indicating an upward trend.
Bullish retracement: The volume pillar above the 0 axis changes from large to small, adjusting the upward trend.
Bearish trend: The volume pillar below the 0 axis changes from small to large, indicating a downward trend.
Bearish rebound: The volume pillar below the 0 axis changes from large to small, indicating a downward trend adjustment.
Comprehensive meaning:
Bull-bear balance: Moving averages surround the 0 axis, volume pillars are sporadic, and the market is volatile.
Divergence: Momentum exhaustion signal, effective when both double line volume pillars diverge.
Trend continuation: Trend up + volume pillar above the 0 axis, or trend down + volume pillar below the 0 axis.
"MACD" Eight major entry points:
1. Chan's Theory Buy and Sell Points
Type One: Buy on bullish divergence + golden cross, sell on bearish divergence + death cross.
Type Two: The double line first goes above the 0 axis, retracing to near the 0 axis, the first golden cross above the 0 axis buys.
2. Trend Judgment Trading Method
Long cycle determines the trend, short cycle enters. If the weekly and daily lines are bullish, short when the daily line retraces or wait for the retracement to lack strength to follow the weekly line and go long.
3. Energy Pillar Position Trading Method
Moving averages surround the 0 axis, volume pillars are sporadic, enter when the price breaks through.
4. Key Position Trading Method
Key support and resistance levels.
K-line piercing signal.
Volume pillar positive and negative conversion to short/long.
5. Secondary Red-Green Trading Method
The first wave of the upward volume pillar is moderate; if it shrinks, it will expand again to continue.
6. Buddha's Hand Upwards
After the double line golden cross, it moves up, retracing to near the 0 axis, the DIF line turns upward.
7. Main Rising Wave Trading Method
MACD volume pillar continuously rises above the 0 axis; when retracing, the volume pillar shortens or expands a second time to enter.
8. Divergence + Pattern Trading Method
MACD divergence + trend break point judgment.
Sharing another (mindless rolling position method): 300 times in 3 months, earning 30 million. If you want to share in the cryptocurrency circle, spend a few minutes reading this, benefiting for a lifetime.
Adjust positions:
Timing: Enter the market when the market meets rolling position conditions.
Open position: Use technical analysis signals to find the right time to enter.
Add position: The market is moving in the right direction, gradually add position.
Reduce position: Reduce position when profits reach predetermined levels or when the market is not right.
Close position: Close all positions when reaching target price or when the market clearly changes.
Rolling position insights:
Increase capital after making money: If the investment has risen, the cost is reduced, and it is safe to increase capital, add at trend breakout points or during retracements.
Base position + T trading: Assets are divided into two parts; the base position remains unchanged while the other part buys and sells during fluctuations to reduce costs and increase profits.
Risk management:
Overall position control and capital allocation, ensuring total investment does not exceed risk tolerance, smart capital allocation, paying attention to market dynamics and technical indicators, flexibly adjusting strategies, and timely stopping losses or adjusting investment amounts.
Rolling position strategy has low risk; the key lies in leverage usage. For example, with 10,000 yuan of capital and 10 times leverage, only 10% margin is used, effectively making it 1 time leverage with a 2% stop loss line, limiting losses. Liquidation occurs due to excessive leverage or heavy positions. Reasonable use of leverage and controlling positions can make risks manageable.
How to grow small capital? Compound interest effect. With limited funds, mid-to-long-term is more suitable, focusing on increasing trading multiples each time.
Position management:
Diversify risks, allocate funds into three to four parts, investing only one part each time.
Use leverage moderately; mainstream currencies should not exceed ten times, and small coins should not exceed four times.
Dynamic adjustment, compensating for losses with equal funds, and withdrawing appropriately when profits are made.
As funds grow to a certain extent, gradually increase the amount of each trade, progressing step by step.
Have your own trading path, form a trading system, overcome human weaknesses, let profits run, and stop loss when exiting. Trading in the cryptocurrency market is a contest of time and patience, not a contest of strategy. No matter how diligent a fisherman is, he will not go out to sea in a storm, but will protect his fishing boat and wait for a sunny day.
Chen Xi only does real trading; the team still has positions available.
