A stable way to make profits from virtual currency - band operation (three band operation methods)

Virtual currency swing operation is a technical strategy that makes profits through trend trading. Common band operation methods include: Moving average crossover method: determine the trend based on the crossover of short-term and long-term moving averages. Relative Strength Index Method: Determine the degree of overbought or oversold in the market based on the RSI value. Moving Average Deviation Rate Method: Determine market trends based on the distance between the price and the moving average and standard deviation.

How to make stable profits from virtual currency: Swing operation

Swing operation is a technical trading strategy that captures the price swings in the virtual currency market through trend trading and makes profits from it. The following introduces three common band operation methods:

1. Moving average crossover method

Use the crossover between moving averages (MA) in different periods to determine trend changes. When the short-term moving average (such as the 5-day moving average) crosses the long-term moving average (such as the 20-day moving average), it indicates that the trend has turned upward and you can buy. On the contrary, when the short-term moving average crosses below the long-term moving average, it indicates that the trend has turned short and you can sell.

2. Relative Strength Index (RSI) method

RSI is a momentum indicator that reflects the strength of price changes. The RSI value ranges from 0 to 100. When the RSI value is above 70, it indicates that the market is overbought and there is a risk of a correction; when the RSI value is below 30, it indicates that the market is oversold and there is the possibility of a rebound. Swing operators can sell on highs or buy on lows when the RSI value reaches extremes.

3. Bollinger Band (BB) method

BB contains three lines: a moving average (usually the 20-day moving average) and two standard deviations. When the price is close to the upper track (MA+2σ), it indicates that the market is overbought, and swing operators can consider selling; when the price is close to the lower track (MA-2σ), it indicates that the market is oversold, and swing operators can consider buying.

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