Application and Operational Suggestions for Short-term Trading Technical Indicators in the Cryptocurrency Market

In the cryptocurrency market, contract trading is mainly focused on short-term strategies. However, few investors participating in short-term trading actually make a profit. The main reason is that the short-term market changes rapidly, and without mastering the necessary technical indicators and applying them reasonably in practice, it is difficult to achieve the expected profits. Below are the explanations of short-term technical indicator applications by Mr. Coin:

1. Observe Trading Volume Patterns

· Contraction Situation: When trading volume remains contracted, it means that both buyers and sellers are participating less, and investors have a similar outlook on future trends, leading to inactive trading. There are two subdivisions: one is when no one is optimistic about the future, resulting in a sharp decrease in volume as everyone sells; the other is when there is optimism about the future, with only buying and no selling, which also causes a sharp decrease in volume.

· Expansion Situation: When trading volume remains expanded, it usually occurs during trend changes, where there is significant disagreement between bulls and bears regarding future trends, and the number of participants is high, leading to active trading and an expanding volume trend. At this time, one should closely monitor the next movement direction and determine which side prevails before taking action accordingly.

2. Changes in Trend Patterns

In addition to focusing on trading volume, it is also important to pay attention to pattern changes, such as W bottoms, head and shoulders bottoms, rounded bottoms, and ascending channels. W bottoms, head and shoulders bottoms, and rounded bottoms can be considered buy signals when they break above the neckline. However, two points must be noted: first, the breakout must be valid and not false; second, breakouts at lower price levels are more reliable, while breakouts at higher levels may be traps set by market makers to offload and drive market sentiment high. A prudent approach is to wait for a breakout above the neckline and then consider entering after confirming a pullback.

3. Application of Moving Averages

Short-term operations often refer to the 5-day, 10-day, and 30-day moving averages. When a lower moving average crosses above a higher moving average (e.g., the 5-day crosses above the 10-day), it is called a golden cross, indicating a buying opportunity; conversely, a death cross indicates a selling opportunity. When three moving averages are in an upward posture, it indicates a bullish arrangement, suggesting that one should consider entering during a pullback to the three moving averages; conversely, if the price falls below the moving averages, one should follow the trend and short.

4. Application of Technical Indicators

There are numerous market technical indicators, over a thousand types, each with its focus. Investors should familiarize themselves with commonly used ones, such as Stoch and RSI. Generally, in the Stoch indicator, when the K value is at a low level (around 20%) and crosses above the D value twice, it is a good buying opportunity; when at a high level (above 80%) and crosses below the D value twice, forming a death cross, it is a good selling opportunity. The RSI indicator indicates that when it is between 0 - 20, the asset is oversold and can be bought; when it is between 80 - 100, it is overbought and can be sold. However, technical indicators have lagging characteristics and should not be the sole reference. Often, during strong trends, indicators may be high but prices still surge, while during weak trends, indicators may be low but prices continue to decline. Comprehensive consideration of various factors is necessary.

From the current trend perspective, the short-term price reversal is significant and the market is volatile. It is recommended to operate with quick entries and exits, and to set stop-loss levels (specific values depend on individual circumstances). If the short-term situation changes, one should decisively stop losses to avoid risks and prevent larger losses. After all, choosing short-term operations means that capital safety is a prerequisite; only with capital can there be opportunities for profit.

Mr. Coin emphasizes the importance of considering the overall situation, maintaining a calm mindset in the face of a rapidly changing market, planning before acting, avoiding greed, and not being overly aggressive. If operations are not ideal, one can seek communication with him, as his years of trading experience may provide assistance. For more real-time trading strategies, online technical learning, and exit strategies, you can follow the mentor's public account (Mr. Coin in the cryptocurrency circle) to obtain the addition method: the first ten each day can receive free exit strategies.

For more real-time trades, you can follow my public account to access online technical learning, exit strategies, etc. I have researched the market for many years, studying the major trends in the cryptocurrency circle, and have studied extensively in the U.S., mainly analyzing and guiding BTC, ETH, DOT, LTC, FIL, EOS, BCH, ETC, and other cryptocurrencies. I welcome all cryptocurrency friends who are unsure about operations to study and learn together.

This article is exclusively shared by Mr. Coin in the cryptocurrency circle and represents his unique views. There may be delays in article dissemination, and risks are borne by the reader. When trading, manage your positions reasonably, and avoid heavy or full positions. Mr. Coin wishes all fans to achieve financial freedom, to move forward together, and to work hard. In the depths of time, hold onto understanding; in investment, one must learn to be optimistic. Do not let your future self dislike your present self. We live authentically, but not every data revelation needs to be taken too seriously. Let the past be the past, and let the future come quickly! Take good care of yourself, sharpen your skills, and be ready to set off at any time. Let's go!

—— This article is written by Mr. Coin in the cryptocurrency circle, and we refuse to plagiarize and respect originality!

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。