Moving averages! They will give you the most direct guidance!



Compare the three moving averages to three fixed stars; understanding their "actions" means grasping the lifeblood of trading.

1. Division of labor for moving averages: each manages a segment and performs its own duties.

① 5-Day Line: Short-term "Sentinel", reacts the fastest, responsible for capturing immediate rise and fall signals;
② 30-day line: the medium-term "judge", anchoring the medium-term trend, the movement is more stable;
③ 60-day line: the long-term "Dinghai Shenzhen", determining the overall direction, once clarified, it is difficult to reverse.

2. Signal Interpretation: Understand the actions and act precisely.

The 5-day line crossing above the 30-day and 60-day lines is a signal that the market is about to "take off"; conversely, if the 5-day line crosses below, you should immediately reduce your positions, don't hesitate.

The most taboo is the "conflict" between moving averages—entering the market when the 5-day and 30-day lines are entangled is no different from gambling. The real opportunity is when the three lines are "walking in step" and have the same direction.

3. The more extreme the market conditions, the more you need to rely on moving averages to "guide the way".

Volatility in the crypto market? Don't worry, the moving average strategy is even more effective: a breakthrough of the 5-day line is the "attack order," while a turn of the 60-day line is the "retreat signal." It's so simple that it's terrifyingly precise.

4. Discipline is the lifeline, execution must be "ruthless to the end".

How many people plan to fill up paper, yet lose their composure in sudden market movements? Moving averages never lie; they force you to be an "emotionless executor."

Remember: you can doubt your own judgment, but don't doubt the moving averages formed by the collective effort – this is a hard rule built with real money.
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