Bitcoin will usher in the 10,000 yuan era. Chart Brother teaches you how to use the moving average strategy to trade (dry goods sharing)

At the time when Bitcoin denominated in RMB is about to hit the 10,000 yuan mark, Chart Brother wrote this article to tell investors who are preparing to get on board or are already on board about some issues in investment transactions. It cannot be said that it will definitely help you make money, but at least it can help you avoid certain risks. Old drivers in the currency world can also see if what Chart Brother said is right.

As a chart guy who has experienced two rounds of Bitcoin bull markets and one round of bear market, I have deeply felt the ferocity of Bitcoin (that is, the trading methods of Bitcoin dealers). Old drivers in the currency world must have experienced the situation where the price of Bitcoin fell in half in one day. If you don’t run away in time, you can only stand guard on the top of the mountain. Explosive pull and smash are the usual methods used by currency dealers, and ordinary retail investors either stand guard at high positions or cut losses at low positions. As a product that is traded 24 hours a day, 365 days a year, our dear dealers can sneak attack you at night. Yes, they start to attack you at 3-4 o'clock in the morning when you are sleeping soundly. They either pull up the price so that you miss the opportunity to chase at a high position, or smash the price so that you are deeply trapped at a low position, or start the market at 8 o'clock in the morning or 6 o'clock in the evening when you are going to and from get off work (most retail investors are rushing to and from get off work and have no time to watch the market and trade, so dealers use this to pit retail investors), which hurts the players in the currency market. The reason is that most retail investors are led by the dealers. The herd effect makes them blindly buy and sell accounts and lose a lot of money. They have no rules and no set of trading tactics of their own. As for the trading discipline, they have no idea. The following chart brother selflessly shares a set of his own tactics with everyone. It cannot be said that it will definitely help you make money, but at least it can help you avoid certain risks.

This trading strategy uses two moving averages. The buy and sell signals are clear, well-reasoned, simple and effective. The operation cycle is based on the daily line. The rules are as follows:

Short-term: Buy when the daily K-line breaks through the 7-day moving average, and sell when the daily K-line falls below the 7-day moving average

Mid-term: ① Buy when the daily K-line breaks through the 30-day moving average, and sell when the daily K-line falls below the 7-day moving average

② When the price is above the 30-day moving average, buy when it breaks through the 7-day moving average, and sell when it breaks through the 7-day moving average.

③ Buy when the price breaks through the 30-day moving average, and sell when it falls below the 30-day moving average

Long-term: Buy when weekly K-line breaks through 30-week moving average, sell when it breaks below 30-week moving average

Why did I choose these two moving averages? Because Bitcoin trading is 24/7, the 7-day moving average is the weekly moving average, and the 30-day moving average is the monthly moving average. The support and pressure of the 7-day moving average and the 30-day moving average in the price trend are quite obvious. I wonder if you understand it. If you look at the K-line trend and review the chart brother's rules, you will see it clearly. I have a general literary talent, and I hope you will forgive me for the shortcomings. I have many tactics, so I won't go into them one by one. I think this one tactic can make you stand among the few people who follow the 80/20 rule and beat 80% of the investors in the market.

I would also like to give some advice to new investors:

① No matter what strategy you use, you must resolutely stop loss. It is very uncomfortable to stand guard at a high position.

② Choose a platform with large trading volume. Such a platform has a deep enough market depth, and both instant transactions and pending orders can be completed quickly.

③ As a free currency, Bitcoin is not backed by the government. If central banks of various countries issue their own digital currencies in the future, Bitcoin will inevitably suffer a large-scale sell-off. Chart Brother suggests that coming to this market is to speculate and earn the difference. Cash is king at all times.

The above charts are original. Please indicate the source when reprinting. 17/5/10 Chart Brother/Text