Encryption asset swing trading strategy: a systematic operational framework from 1000U to 100,000U

This article breaks down a swing trading method with low fault tolerance and high stability. The core logic revolves around "trend selection - precise entry - disciplined profit-taking and stop-loss". By utilizing multi-period resonance and clear rules, it reduces operational randomness and enhances profit certainty.

1. Target screening: three-layer filtering to lock in high-potential currencies.

The screening process must go through three layers of verification: "price increase - pullback - trend" to exclude weak and high-risk coins. The specific steps are as follows:

1. First layer: initial screening of short-term price increase
Include cryptocurrencies that have ranked among the top gainers in the past 11 trading days, while excluding those that have experienced consecutive declines in the last 3 trading days—this is primarily to avoid the risk of a pullback after "capital profit exit," and to lock in cryptocurrencies that still have short-term investor interest.
2. Second layer: Monthly line trend defines direction
Open the monthly candlestick chart of the target asset and keep only the cryptocurrencies where the MACD indicator forms a golden cross. A monthly golden cross indicates a shift in the medium to long-term trend from weak to strong, providing a "trend safety cushion" for subsequent swing trading and avoiding operations against the major trend.
3. Third Level: Daily Support to Find Buy Points
Focus on the daily level, using the 60-day moving average as the key support level. An effective entry signal is only considered when the coin price pulls back near the 60-day moving average, accompanied by an increase in trading volume (forming a "high-volume candlestick")—the volume pullback verifies the strength of the support, avoiding the false signal of "low-volume breakdown."

2. Trade Execution: Entry Rules and Position Management

1. Entry Timing
Only execute heavy entry operations when the three conditions of "monthly MACD golden cross + daily pullback to the 60-day moving average + increase in volume" are met. Do not enter if any condition is not satisfied, eliminating subjective judgment interference.
2. Take Profit Strategy (Stepwise Locking of Profits)
Use "tiered take profit" to avoid missing out on profits due to greed, specific rules:
- When the swing trading increase reaches 30%, reduce 1/3 of the position;
- When the swing trading increase reaches 50%, reduce the position by 1/3;
- Hold the remaining 1/3 position with the trend, using the 60-day moving average as the final take profit/stop loss reference.
3. Stop-loss discipline (core of capital protection)
Establish an "extreme situation stop-loss rule": if the coin price directly falls below the 60-day moving average on the daily chart the day after entering the market, regardless of the loss magnitude, immediately liquidate the position and do not harbor any hopes of recovery.
Although the probability of a breakout on the daily chart is low under the background of a monthly golden cross, "preserving capital" is the primary principle in cryptocurrency trading; if the subsequent target meets the conditions of "retracement to the 60-day moving average + increased volume," it can be re-entered.