Moving averages clustering often indicate a clear directional choice in the near future. Today, I want to break down this trading approach using WLFI's recent price movements as an example.

The core logic is actually simple: when the 20, 60, and 120-day moving averages are tightly packed together, it means the short- and medium-term price centers are aligned. Once broken, it tends to form a strong trend. WLFI has been rising from 0.17 for 7 days now, and the three moving averages are still densely clustered. The 20-day moving average (red line) has already started to turn upward, gradually rising each day. This provides us with a dynamic stop-loss opportunity— as the moving average moves up, the stop-loss point also moves up, and the risk-reward ratio naturally increases.

According to this rhythm, in about two weeks, the 20-day moving average will reach near the current price, meaning in two weeks, you can set your stop-loss close to the current price, and the upward space essentially becomes profit. This is the real "huge risk-reward ratio."

How to operate specifically? Divide the total planned position into 14 parts, buying one part each day. The advantage of this approach is— even if there is a sudden drop like recently, you only add two or three batches of positions, leaving about ten batches as backup to add later. If the price falls below MA20, then stop all losses and stop adding positions. As long as the moving averages remain densely packed, this strategy can be repeatedly used. Historically, in major cryptocurrencies, its success rate is actually quite good.

Talking about recent actual situations: around 0.176, I did get a bit carried away, chasing in with 600,000 USD, which quickly increased the position size. Yesterday, it dropped straight from 0.188 to 0.173. At the time, I thought it was a short-term blow-up, but the MA20 was not broken— just reduced some positions to ease anxiety. Today, I paused adding to the position as planned, partly because I was scared by the false breakout a couple of days ago, and partly because the current positions have already gained enough profit, so holding some cash feels more secure.

The midline now is at 0.1535, and tomorrow it’s expected to reach around 0.155. Each day, the stop-loss moves closer, and the risk-reward ratio gradually expands. This is the rhythm that should be maintained during the dense moving average phase.

This is just a sharing of a trading approach. Since the current position still has unrealized losses, consider this as a reference logic and do not follow blindly. Let’s see if WLFI can generate a satisfactory trend this time.