Cryptocurrency newbies can easily make money by strictly following this method.
First, we need to set the moving averages on the candlestick chart to three lines: the 5-day moving average, the 15-day moving average, and the 30-day moving average. The 30-day moving average is the lifeline, serving as a strong support or resistance. Then, we can trade the cryptocurrency based on these three moving averages.
1. The selected cryptocurrency must be in an upward trend; it can also be in a consolidation phase, but it must not be in a downward trend or have moving averages opening downwards.
2. Divide the funds into three equal parts. When the cryptocurrency price breaks above the 5-day moving average, buy 30% with a light position. When it breaks above the 15-day moving average, buy another 30%. Similarly, when it breaks above the 30-day moving average, buy the final 30%. This requirement must be strictly followed.
3. If the cryptocurrency price does not continue to break above the 15-day moving average after breaking the 5-day moving average, but instead pulls back, as long as it does not break below the 5-day line, keep the original position. If it breaks below, sell.
4. Similarly, if the cryptocurrency price breaks above the 15-day moving average but does not continue to break higher, and pulls back without breaking the 15-day moving average, continue to hold. If it breaks below, sell 30% first; if it does not break the 5-day moving average, hold 30% of the position based on the 5-day moving average.
5. When the cryptocurrency price continues to break above the 30-day moving average and pulls back, sell according to the previous method at once.
6. Exiting is the opposite; when the cryptocurrency price is high and breaks below the 5-day line, sell 30% first. If it does not continue to drop, hold the remaining 60%. If all three moving averages (5-day, 15-day, 30-day) are broken, sell everything; do not harbor any illusions.
