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After exploring various encryption currency trading methods, the author has discovered a relatively stable and practical profit strategy. The core of this strategy lies in grasping the combination of market dynamics and technical analysis, allowing investors to better capture market opportunities. Below is a detailed analysis of this strategy:
First, choosing potential coins is key. The method is two-pronged: firstly, pay attention to coins that have seen significant price increases in the past two weeks and add them to your watchlist, which reflects the short-term market hotspots; secondly, use the MACD indicator on the monthly chart to identify coins that have produced a golden cross signal. A monthly golden cross usually indicates a positive medium to long-term trend, helping to filter out short-term market noise.
Secondly, grasping the timing of entry is crucial. It is recommended to focus on the 60-day moving average on the daily chart. When the price of the coin pulls back near the 60-day moving average and is accompanied by increased trading volume, it may be worth considering a heavy buy. This approach is based on the consensus that the 60-day moving average serves as a medium-term support level in the market, and combined with an increase in trading volume, it often indicates that the adjustment is nearing its end and the probability of a rise increases.
Finally, establishing a clear exit strategy is key to protecting profits. The core principle is to use the 60-day moving average as a reference: hold when the price is above the average, and exit decisively when it falls below. Specific operations include:
1. Partial Take Profit: When the price increases by 30%, it is recommended to sell one-third of the position; when the price increases by 50%, sell another one-third, which allows for partial profit realization while retaining potential for further gains.
2. Timely stop loss: If the coin price drops below the 60-day moving average on the day of purchase, all should be sold immediately, leaving no room for any market luck.
This trap strategy emphasizes the importance of technical analysis and risk management, aiming to improve the success rate and stability of trading through strict rules for coin selection, entry, and exit. However, investors should still keep in mind that the encryption currency market carries high risks and should operate cautiously based on their individual risk tolerance. Continuous learning and practice are essential to finding a trading method that suits them in this rapidly changing market.