Today, I want to share the 'foolproof' trading method he used—the 5-day moving average strategy.
Even if you are a novice in the crypto world, as long as you strictly follow this strategy, you can easily make money.
1. What is the 5-day moving average?
The 5-day moving average (MA5) is a line connecting the average transaction prices over the past 5 days. It reflects short-term market sentiment and is one of the simplest and most effective tools for determining buy and sell points.
Setting Method (Using Binance as an example):
1. Open the candlestick chart, click on 'Indicators'
2. Select 'MA (Moving Average)'
3. Keep MA5, remove other moving averages (like MA10, MA30), to make the chart clearer
2. Core Logic of the 5-Day Moving Average Strategy
The 5-day moving average represents the average holding cost in the market over the past 5 days, so:
In an uptrend, when the currency price pulls back near the 5-day line, it is often an opportunity to increase positions or go long
In a downtrend, when the currency price rebounds near the 5-day line, it is usually a signal to reduce positions or go short
The simplest methods are often the most effective!
3. Practical Skills of the 5-Day Line Strategy
(1) Buy Signal (Opportunity to go long)
✅ Signal 1: Break through the 5-day line
The 5-day line turns from downward to flat or upward
The price of the currency breaks through the 5-day line from below and stabilizes
Action: Buy or go long
✅ Signal 2: Pull back without breaking the 5-day line
The currency price operates above the 5-day line, quickly recovers after a brief drop
Action: Increase positions or continue holding
✅ Signal 3: The 5-day line continues to rise; a brief drop still allows for buying
The 5-day line maintains an upward trend, the currency price briefly drops but quickly rebounds
Action: Buy on dips
(2) Sell Signal (Opportunity to go short)
❌ Signal 1: Stay away from the 5-day line, ready for a pullback
The currency price rises continuously, moving away from the 5-day line
Action: Reduce positions or go short
❌ Signal 2: Breaks below the 5-day line, trend weakens
The 5-day line is flat or downward, and the currency price breaks below and cannot recover
Action: Sell or go short
4. 5-Day Line Strategy Mnemonic
📌 'Don't sell on spikes, don't buy on drops, don't trade in sideways markets'
📌 'Buy on dips, sell on rallies' (Buy during declines, sell during rises)
📌 'If high prices are consolidating before another spike, run quickly; if low prices are consolidating and making new lows, buy boldly'
5. 10 Money-Making Tips in the Crypto World (suitable for different market conditions)
1. Two-Way Trading Method (Applicable in both bull and bear markets, can go long or short)
2. Currency Hoarding Method (Only buy BTC/ETH, hold for over a year)
3. Bull Market Dip Buying Method (Only buy quality altcoins that are in free fall)
4. Pyramid Bottom Buying Method (Buy in batches, buy more as prices drop)
5. Violent Currency Hoarding Method (Buy Low Sell High, Profit Reinvestment)
6. ICO Compound Interest Method (Participate in new coins, switch to the next after 3-5 times profit)
7. Small Coin High Profits Strategy (Diversify by buying low-priced coins, hold and wait for an explosion)
6. Final Advice
Making money in the crypto world is not difficult; the hard part is overcoming greed and fear.
The 5-day moving average strategy helps you replace emotions with rules, making trading simpler.
If you are still losing money, why not try this method and strictly implement it for a month to see the results?
Remember: The market does not reward impulsive people; it only rewards disciplined individuals.
(Click on the homepage for more practical strategies) 🚀
In this market filled with manipulation and traps, do not get overly excited and invest everything because of a big bullish candle; nor should you panic and sell at a loss because of a big bearish candle. The market is continuously creating illusions, and emotional trading will only make you a target for scams. If you do not have a clear judgment of the market, find a truly reliable and experienced mentor to guide you.
