After experiencing a decade of baptism in the cryptocurrency market, starting with an initial investment of 50,000 yuan and now making a living from it, I have a deep understanding of the market's complexity and variability. Throughout this process, I have tried almost all mainstream trading strategies and technical analysis methods. For those who wish to take cryptocurrency trading as a side job, observing and learning more can indeed help avoid many common pitfalls, and may even save you years of exploration time.



When determining whether a cryptocurrency has formed a breakthrough, we can analyze it from four key dimensions:

First is the trading volume. As the ancient saying goes, 'Before the troops move, supplies must be prepared'; the formation of new trends is often accompanied by a significant increase in trading volume. Pay special attention to the first surge in volume after a long period of sideways trading, as this is usually an important signal. However, the real entry opportunity often appears during the second wave of increased volume after the main force has completed testing and clearing positions.

Secondly, there is the price. Although intraday movements can be volatile, the stability of the closing price is key. If the closing price can stabilize above important resistance levels, then the likelihood of a breakout is greatly increased.

The third factor is the time element. The ideal prerequisite for a breakout is that the price of the currency has experienced at least a 3-month period of low trading volume consolidation, while the concentration of chips has fallen below 10%. In this case, the main funds are more likely to have completed sufficient chip accumulation, laying the foundation for a subsequent strong rise.

Finally, there is the spatial dimension. Identifying key resistance levels is crucial, as these may be the starting point of a previous significant decline, the neckline of a W bottom or head and shoulders bottom pattern, or even a whole number level. Once these resistance levels are clarified, we can more accurately assess the potential upward space once the price breaks through.

Mastering these four-dimensional analysis methods will help investors grasp market opportunities more accurately and improve trading success rates. However, it is important to note that the cryptocurrency market carries higher risks, and investors should act with caution and implement good risk management.
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AirdropHunter420vip
· 07-25 16:50
Experience leads to real knowledge, valuable insights
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