Did you know in crypto trading, all the methods and strategies you are using have different paths but the same destination? Real traders always catch the trend, and their excellence is based on momentum identification.
In the above chart, you will see the MCAD indicator; don’t worry about its parameters. When the blue line crosses the orange line, it is the start of the trend. If the K line continues to move forward, it is the momentum of the trend. To make a real profit, you need to enter the trend at the beginning. In addition, you never exit until the trend changes or just trade at the next 3–5 K-lines and then exit.
The real hack to confirm the momentum and maximize the winning rate is to increase the parameters of the indicators. For example, you can use multiple moving averages with an extended timeline.
The higher the parameter size of your indicators, the more accurate your strategy. You could achieve a high winning rate even when you have a few opportunities.
In the above chart, you can see the confirmation of the trend. I have used the 1-minute time frame and 72 periods to judge the trend. In addition, whatever parameters and methods you have used, it is undeniable that you could encounter shocks.
In summary, a 1-minute chart with a moving average is the better tool to determine the strength of a trend. After figuring out the momentum, you can create your order and make a decent income.
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