The ups and downs of the crypto world over ten years: a journey of wealth evolution from luck to technology.

In the crypto world, there was a time when luck dictated the direction of wealth. However, as the industry continues to develop and become more widespread, what truly tests investors today is solid technology and mature strategies. As someone who has been deeply involved in the crypto world for over a decade, I am willing to share my personal ups and downs as well as the practical experience I have accumulated, hoping to light a lamp for everyone on their investment journey.

1. The Ups and Downs of Life in the Crypto World: A Four-Part Series

(1) Entering the crypto world: Wealth explosion under the blessing of luck

With 8000 yuan in hand, I stepped into the crypto world, just as the bull market wave came sweeping in. Driven by the market frenzy, my assets rapidly inflated like a snowball, and within a short period, I surprisingly gained over 10 million. At that time, it was almost entirely by luck that I boarded the wealth express, and this sudden success also laid the groundwork for the subsequent setbacks.

(2) Blind Confidence: The Painful Lesson from Peak to Debt

Holding tens of millions in funds, yet due to an over-reliance on luck and a lack of mature investment strategies, I became lost in the ever-changing market. Blindly operating, chasing highs and cutting losses, I ended up not only losing all my principal but also incurring a debt of 8 million. This disastrous defeat made me deeply realize that relying solely on luck is difficult to maintain a foothold in the crypto world.

(3) Bottoming Rebound: A Dual Boost of Technology and Luck

With a capital of 200,000, I re-entered the market and began to delve into trading techniques. For two years, I slept only 3 hours a day, created hundreds of charts, and repeatedly studied various market patterns, going through tens of thousands of trading practices. With the combined effect of luck and skill, I achieved a turnaround from 200,000 to 20 million, which allowed me to truly understand the importance of technical analysis in crypto world trading.

(4) Steady Progress: Wealth Accumulation through Technology

Now, with a solid technical foundation and a mature trading system, my assets have exceeded 20 million. In the future, I will continue to deepen my technical skills and patiently await the next bull market, steadily advancing toward the goal of 100 million in assets. During this stage, technology has become my core weapon in the crypto world.

2. Three core steps of trading in the crypto world

(1) Step One: Accurately Grasp the Trend

Determining the trend of the market is the cornerstone of trading. The market can only be in three states: bullish, sideways, or bearish. It is recommended to focus on charts with a period of 4 hours or more (such as 4-hour charts, daily charts, and weekly charts; I personally prefer the 4-hour chart). When the trend is upward, decisively go long; when the trend is downward, choose to go short; if it is in a sideways consolidation phase, to reduce risk, it is advisable not to enter the market.

(2) Step Two: Lock in Key Positions

Regardless of whether the market rises or falls, it presents a stair-step movement like a bouncing ball. Accurately finding the price jump points and drop points, which are the key support and resistance levels, is crucial for seizing trading opportunities. For more information on how to accurately locate these key levels, you can refer to the related articles I published earlier.

(3) Step Three: Capture Entry Signals

After locking in the trend on a large time frame chart, it is necessary to switch to a smaller time frame chart to look for specific trading signals. Investors do not need to be greedy; mastering one or two trading strategies that suit them is sufficient. At the same time, quickly formulating a complete trading strategy is crucial. A well-rounded trading strategy includes the following elements:

1. Target: Specify the type of virtual currency for the transaction;
2. Position: Reasonably plan the holding ratio;
3. Direction: Determine whether to go long or short;
4. Entry Point: Clearly specify the entry price.
5. Stop Loss: Set the loss exit point;
6. Take profit: Plan the timing for exiting with profit;
7. Countermeasures: Develop plans to respond to emergencies;
8. Backup: Plan the operation after the transaction ends.

Here, I would like to share the famous TLS technical analysis method, which is Trend + Key Position + Signal = Successful Trading. Before each trade, strictly follow the process to formulate a strategy, and persist in the long term. This not only effectively controls risks but also allows one to continuously discover personal shortcomings in practice and gradually improve trading skills.

3. Practical Tools: Analysis of Triangle Patterns in 22 Chart Shapes

Among the 22 chart patterns I have studied in depth, the triangle pattern is a highly valuable continuation pattern in practical trading. It consists of 6 turning points and is mainly divided into symmetrical triangles, ascending triangles, and descending triangles. Its formation process fully reflects the psychological game between the bulls and bears in the market. Below are trading strategies for two common triangle patterns:

(1) Ascending Triangle

This pattern usually appears in an upward trend, with the upper side being horizontal and the lower side slanting upwards. Based on the principle of "buy low and sell high," there are three excellent entry opportunities in the ascending triangle pattern:

1. Entry at the turning point: Buy at point a on the 6th turning point, with the stop loss set below point a;
2. Breakthrough entry: Buy at point b when the price breaks the pattern, set the stop loss below point b;
3. Pullback entry point: Enter the market when the price pulls back to the low point c, with the stop loss set below point c.
In general, the minimum target is the parallel line connecting the first turning point and the opposite turning point, at the intersection with the trend.

(2) Descending Triangle

The descending triangle is commonly found in a downtrend, with the upper side sloping downwards and the lower side horizontal. The trading strategy is as follows: enter a sell position at the 6th turning point, point a, with a stop loss set above point a, in order to seize the profit opportunity in the downtrend.

I am Wan Bing, focusing on the crypto field for ten years. If you are equally obsessed with trading technology and eager to enhance your investment skills in the crypto world, feel free to follow me. Here, you will gain the freshest insights and the most practical trading techniques in the crypto world. Let's work together to steadily advance on the investment path in the crypto world!
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