What lessons can we learn from the bitcoin crash?

Bitcoin broke through the support of the 15EMA SMA on the weekly chart again today, but we’ll have to wait a few days to confirm how the weekly chart will eventually close!

What lessons can we learn from the bitcoin crash?

Bitcoin broke through the 15EMA SMA support on the weekly chart again today, but we will have to wait a few days for the final weekly chart close to be confirmed!

If it closes above the 15EMA SMA on the weekly chart again, then it means that the weekly chart support is still intact; once it closes below the 15EMA SMA, then the long trend on the weekly chart is suspended.

So this average of the weekly chart is crucial, let’s focus on it!

Since 2021.5.1, we were going to wait for a golden cross in the sky chart averages before making a specific long trade plan; and be prepared for the fact that if bitcoin spikes straight up before the sky chart averages cross, then we miss this long wave!

So we either actively miss out on the upside before the golden cross of the averages, or we craft a specific entry plan after the golden cross of the averages.

When we are not afraid of missing the early start of the market, what is there to worry about?

Just take your time and wait!

Why must we wait for the golden cross of the SMAs on the sky chart before we go ahead and produce a specific long entry plan, and not ahead of time?

This is to filter out false breakouts to the upside as well as false long signals!

In the end, we used the tool of the golden cross in the sky chart to filter a lot of false long signals; we didn’t get hurt in the middle of this plunge.

Follow the rules, follow the plan, and after many trades, you will find a pattern: minimize losses and maximize profits!

After following the rules many times, the odds slowly shift to your side.

This time we didn’t wait for the golden cross of the averages on the sky chart, and there was no opportunity to enter the long side; instead the candlestick on the sky chart fell below the green uptrend line again, which is a wake-up call for the long side!

In this area, we have to be as cautious as possible with the longs!

this green uptrend line on the four hours was repeatedly broken several times before falling.

Then came a big waterfall with the warning of a dead cross of the averages.

In this Great Falls, we do not necessarily have to find a way to do this wave of shorts, but there is a little lesson to be learned.

Let’s look at this wave of decline, the most vicious decline is the last two candlesticks; and these two candlesticks in front of the four negative lines rather than very impressive!

That is to say, the four negative candlesticks in front of the inconspicuous candlesticks, in fact, is to lay the foundation for the two compounding decline behind.

The case of this compounding decline tells us that

If you are doing a trade with the trend, then hold for as long as possible, there may be compounding accelerating space profits beyond your imagination.

If you do the wrong direction, then as far as possible in advance to set the stop loss, or the first signs of wrong, the exit should be implemented rules for exit; because you do not leave the field, the back may be more ferocious principal retraction!

The opportunity of compounding a homeopathic trend is the market’s superb reward for homeopathic traders; for investors who carry a single and refuse to admit their mistakes, the market will again be the cruelest punishment for them.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/what-lessons-can-we-learn-from-the-bitcoin-crash/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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