Cryptocurrency Exchange - Can a Kiss Really Seduce the Soul

Even when watching AV, it’s ultimately for practical experience. The previous chapter discussed a lot about “kissing,” with the goal of doing rather than just watching. Watching without acting, isn’t that just Yin Jiu You? Watching too much AV without practice definitely harms health. But acting involves risk. Any position involved carries risk, and unless the market moves in a certain way, even the simplest moving average system can’t guarantee beforehand exactly how to “kiss.” Those familiar with this ID’s interpretation of “The Analects” know that risk is “not to be feared,” it has no rank, and any reckless pursuit of absolute risklessness in investment is wishful thinking. The only way is to set up a system that makes the risk, which has no rank and is “not to be feared,” become ranked within that system. This “risk” system is the only long-term way to beat the market.

You must base your system on your actual situation, such as capital, trading skills, etc., and establish a classification evaluation system. Then, according to this system, set up corresponding response procedures for all possible scenarios. This way, all risks are managed in an operable manner. The only thing the trader needs to do is, once a situation occurs, take the appropriate action. For stocks, there are basically three actions: buy, sell, hold. Of course, in practice, there’s also a matter of volume, which relates to money management, so we won’t consider it for now. Therefore, any investment operation reduces to a simple mathematical problem: N fully classified risk scenarios, corresponding to three choices (buy, sell, hold).

For example, a simple buy-sell system based on the 5-day and 10-day moving averages first creates a complete classification of their positions: the female position is bullish, the male position is bearish, and there’s a tangled situation. All tangled situations will eventually evolve into either female or male positions—only two types: continuation or reversal. Accordingly, a very simple operating system arises: after the positions are tangled, intervene at the low point(. For the bulls, this system faces only two outcomes: successful female position or failed male position. If the tangled situation is a continuation, the original position is maintained; if it’s a reversal, the position changes. Therefore, for the bulls, only two situations are worth intervening: a reversal of the male position or a continuation of the female position; the opposite applies for bears.

For any trend, the primary judgment is the position: male or female. Anyone with eyes can judge this. For the 5-day and 10-day moving average system, if the 5-day is above, it’s a female position; if below, a male position. This is clear in any case. If it’s a female position, once tangled, the only concern is whether the tangled situation is a continuation or a reversal. It can be confidently said that no method can guarantee 100% certainty on this, but many methods can make the judgment sufficiently accurate. For example, the first tangled situation in a female trend is highly likely to be a continuation; if it occurs the third or fourth time, the likelihood of reversal increases. Also, before the first tangled situation, the 5-day moving average must be very strong, not weak, otherwise, the tangled situation is very likely a continuation, and there will be at least one upward move afterward. Third, the volume before the tangled situation should not be too large; if it is, the chance of a false signal increases. If volume suddenly spikes and then quickly shrinks, even without a false signal, the tangled time will increase, and volume will show two shrinkages.

The first tangled situation in a female position indicates a continuation, while for a male position, it’s the opposite. To find the last reversal, look for the last tangled reversal situation. If after that, a sharp decline occurs but the trend defies expectations, it’s the best buying opportunity. Bottom fishing isn’t impossible, but only in this situation. However, no one can be 100% sure that it’s the last tangled situation. Usually, the first tangled situation after a male position is definitely not the last; starting from the second, it could be. The most effective way to judge is to use the trap created by the deflection (backward divergence). How to use divergence is a specialized topic, which will be discussed in detail later.

In summary, using a moving average-based buy-sell system, the first step is to use the last tangled divergence in a male position to create a bear trap for bottom fishing—this is the first good buy point. The second is the low point formed after the first tangled situation in a female position, which is also a good buy or add position. Under this system, these two buy points carry the least risk. To be precise, the risk-to-reward ratio is the highest, and these are the only two points worth buying.

However, it must be pointed out that these two buy points are not risk-free. The risk lies in: for the first buy point, mistaking a continuation for a reversal, or misjudging divergence; for the second buy point, mistaking a reversal for a continuation. These constitute risks, but these risks are largely related to trading proficiency. For experts, the accuracy of judgment is much higher. How to become an expert mainly depends on more practice and observation, forming an intuition. But whether expert or novice, the principle of buy points remains unchanged. The only difference is in the judgment of continuation, reversal, and divergence.

Once you understand this, any action not taking place at these two buy points is unforgivable because it is a violation of principles, not a matter of high or low skill. If you choose this trading system, you must follow this principle. Once the buying method is clear, selling is just the reverse, which is very simple.

A kiss that destroys the soul—learning this soul-destroying kiss allows you to find a solid foundation in a turbulent market. Of course, the parameters of the corresponding moving averages can be adjusted based on capital and other factors. The larger the capital, the larger the parameters should be. This requires your own exploration. This approach is still effective for short-term trading; just change the daily chart to a minute chart. Once bought, hold until the first sell point, which is the divergence after the female position tangled, and the second sell point, which is the first tangled high point after turning into a male position. Sell at these points to complete a full operation.

Note: It is generally best to buy at the second buy point and sell at the first sell point—that’s the difference between buying and selling. $PENDLE **$CGPT **$TAO