-$ Operate based on trends and indicators: The masters often follow the principle of "follow the general trend and go against the minor trend". Use the weekly line to judge the general direction, the daily line to find the buying point, and the 4-hour line to grasp the band. For example, when the weekly MACD crosses the golden cross and the moving average is arranged in a bullish pattern, hold the position firmly; otherwise, consider leaving the market. They will also rely on the combination of "moving average + MACD + trading volume", such as the 5-day moving average crossing the 10-day moving average as a buying point, and the dead cross as a selling point; buy the bottom when MACD diverges from the bottom, and reduce the position when it diverges from the top; the trading volume is enlarged by 3 times the previous high point, which may be a precursor to a trend reversal.
- Use market sentiment and on-chain data: refer to Twitter and Reddit sentiment index (fear and greed index), open a position when the panic value is less than 20, and the winning rate is relatively high; reduce the position when the greed value is greater than 90 to avoid black swan events. At the same time, with the help of on-chain monitoring tools such as Glassnode, if the net inflow of the exchange is greater than 20,000 BTC/week, be alert to the risk of selling pressure; the change of the whale address (single transfer> 5000BTC) can predict the market in advance.
- Seize special market opportunities: For a sharp drop in the market, after falling for 7 consecutive days, if a "long lower shadow + shrinking trading volume" appears on the 8th day, it may be a staged bottom, and you can consider buying the bottom. In the face of a sideways market, if the price of the currency has been sideways for more than 15 days and suddenly breaks through the upper edge of the box with a large volume, you can follow up and buy. In addition, if the price of the currency rises for 3 consecutive days and does not reach a new high on the 4th day, you can reduce your position by 50% to lock in profits.
- Strictly control risks: The experts will strictly set the stop loss line, such as 8% of the purchase price, and will leave the market unconditionally if it falls below. At the same time, the proportion of single currency holdings should be controlled, not exceeding 20% of the total funds, or even lower, to spread the risk. They will also withdraw the principal after the profit exceeds 50%, and continue to gamble with the profit to avoid excessive losses.
- Adopt a fixed investment strategy: Regardless of whether the market is bullish or bearish, invest in Bitcoin on a fixed date every month. If the decline exceeds 30%, double the investment. This method can reduce costs and reap better returns in long-term investments. For example, in the bear market from 2018 to 2020, this strategy can significantly reduce costs and obtain higher returns in the subsequent bull market.
- Use leverage with caution: Professional players recommend that leverage be ≤5x per trade and only use it at appropriate times, such as when breaking through key resistance levels, to avoid excessive risk. At the same time, they will combine trends. For example, when the weekly trend is upward and the 20-week moving average breaks upward, use 5x leverage to go long and set "falling below the 10-day moving average" as a mandatory stop loss condition. $BNB
