The direction is right, the wallet doubles.
Brothers, I am Brother Bin. Today I want to discuss my most hardcore trading philosophy with you—trend trading. This is not just about chasing highs and selling lows, but about grasping the rhythm of the market. Remember those who positioned themselves around 2600 for Ethereum and ambushed SOL around 152 and held on; they are the ones who truly laugh last.
Many newcomers fall into misconceptions as soon as they enter the market, always feeling that they must catch every wave. Frequent operations lead to significant losses in transaction fees, but the account does not show growth. I have always emphasized: we never chase highs and sell lows, we only trade in trends.
1. What is true 'trend trading'?
The core of trend-following strategy is to identify and follow established market trends, rather than trying to predict market peaks or troughs. When the market shows a clear upward trend, we consider buying; when the trend turns downward, we consider selling or shorting.
How to judge a trend? I mainly look at these indicators:
Moving Average (MA): When a short-term moving average (such as 5-day or 20-day) crosses above a long-term moving average (such as 50-day or 200-day), forming a 'golden cross', this is often a signal that a potential upward trend is beginning. My personal habit is to combine dual or even triple lines for comprehensive judgment to avoid false signals.
MACD Indicator: When the MACD line crosses above the signal line, it is considered a buy signal; conversely, when the MACD line crosses below the signal line, it is considered a sell signal. I pay special attention to the changes in the MACD histogram, as it can reflect the strengthening or weakening of momentum in advance.
Volume confirmation: An upward trend must be confirmed by trading volume. If the price makes a new high but the volume does not follow, be cautious about whether the trend is sustainable.
For me, trend trading is like surfing; you don't need to create waves, just discover them, and then ride them steadily.
2. How to position at key levels?
The premise of 'ambush' is to find a good entry point. I particularly focus on key support and resistance levels.
By analyzing historical data from candlestick charts, we can identify price levels that have been touched multiple times but not broken; these are key resistance and support levels. My strategy is:
Gradually build positions near support levels: For example, when Ethereum repeatedly finds support and stabilizes around $2600, it is a signal worth noting.
Increase position when breaking key resistance levels: When the price effectively breaks through previous important resistance levels accompanied by increased trading volume, it is often a signal of trend acceleration.
Using Fibonacci retracement tools: In a trend, when the price retraces to key Fibonacci levels (such as 0.382, 0.618), it often encounters support or resistance, which can help us find more precise entry points.
3. Hold on to it to double—Mindset and Risk Management
This is the most challenging part. Identifying trends and entry points is relatively easy; the difficult part is managing one's mindset during the holding process.
A smoothly rising profit and loss curve is a reflection of a trading system that is stable, profitable, and well-controlled in risk. How to achieve this?
Set clear stop-loss and take-profit points: Before any trade, I pre-set stop-loss and take-profit points. Stop-loss is not meant to be hit; rather, it is meant to allow you to hold the correct position with peace of mind. I set stop-loss below key support levels or according to volatility indicators.
Control position size, avoid putting all in: I usually strictly control the risk of a single trade to a very small percentage of the total capital (for example, 1%-2%), to avoid significant losses due to a single trade error.
Beware of emotional trading: Avoid making irrational trading decisions due to fear or greed; strictly following the trading plan is key to success. Market noise is always present, and strict discipline is the best weapon against noise.
4. Taking profits is the way to secure your own
Trend trading does not require you to hold from start to finish; timely profit-taking is equally important.
When the price reaches the preset target or when technical indicators show a top divergence (for example, the price makes a new high while the RSI indicator fails to make a new high), I will consider taking partial profits to realize gains. For instance, I am currently optimistic about Ethereum's long-term higher target, but I will take profits after a short-term rebound and wait for a low re-entry opportunity, based on this strategy.
Remember, the money in the market is endless, but your principal can be lost completely.
Conclusion
Trend trading is an art of 'going with the flow'; it requires us to have patience, discipline, and a sense of awe towards the market. My view has always been clear: abandon the illusion of catching every fluctuation and focus on the main direction of the market, and profits will naturally follow.
The current market is indeed full of uncertainties, but this is precisely when trend traders can showcase their advantages. Stay patient, keep your hands steady, and wait for the trend to clarify before acting, which often allows you to seize the real opportunities that belong to you amidst turbulence. Follow Bin Ge for more firsthand information and insights in the crypto space, becoming your navigation in the crypto world; learning is your greatest wealth!#加密市场反弹 #何时抄底？ $ETH
