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People often ask, how do you determine support and resistance levels, and when is the right time to enter the market? Honestly, it's not that mysterious.
My approach has always been simple but effective. When choosing coins, I don't randomly browse; I look at the top gainers. Coins that have experienced a rally in the past half month are directly added to my watchlist. If they can rise, it indicates there is capital backing and popularity gathering behind them, providing a foundation for continued upward movement. Otherwise, there's no point for traders to connect the dots.
I also keep technical indicators straightforward—mainly focusing on the monthly MACD. I avoid trading when the trend hasn't clearly emerged. Those oversold rebounds? Winning once is partly luck. Relying on that for long-term turnaround will eventually lead to a crash.
When I actually enter a position, I mainly look at the medium-term moving averages. I wait until the price pulls back near a key moving average and is supported by trading volume. Only then do I consider entering. Don't try to guess the bottom; learn to wait for signals. When the conditions are right, act; if not, be patient and wait—no forcing.
Once in, things become simple—if the moving average holds, keep holding; if it breaks, exit immediately. Every hesitation could turn profits into losses. I've stepped into too many of these traps.
When the gain is good, don't be greedy. Take profits gradually by reducing your position in stages. Don't always try to eat the whole fish; the tail is often the most troublesome part.
The most crucial rule: if the price breaks below a key level, just exit without hesitation. This discipline has saved me countless times. Many people are reluctant to cut losses, but ending up with small losses can eventually turn into big holes.
The method, in essence, isn't complicated. The hard part is whether you can stick to it consistently. Market opportunities are always there, but the prerequisite is that you survive long enough to seize them.