The simplest systems are often the hardest to stick to.

When I first started trading cryptocurrencies, I thought I needed some complicated model to make money. It wasn't until I saw a grassroots expert's trading record—that used only the most basic moving averages and candlestick combinations—that I realized I could turn six-figure capital into nearly eight figures. At that moment, I understood: truly effective methods are always simple.

Today, I’ll break down this system for everyone. Honestly, this approach wins because it’s simple and easy to understand; the challenge lies in whether you can truly stick to it. It’s purely based on the combination of moving averages and candlesticks, developed through years of practical exploration.

**Moving Averages: The Key to Seeing the Trend Clearly**

Moving averages are like a mirror of the market trend. They filter out noise, allowing you to see the direction clearly. The parameters I use differ from textbook examples—after repeated testing, I found that the 7-day, 14-day, and 21-day combination is most responsive to short-term price movements and doesn’t generate false signals too often.

When the three moving averages are aligned in a bullish order (7 > 14 > 21), an uptrend is established; if they are in a bearish order (7 < 14 < 21), a downtrend is forming. The most frustrating situation is when all three moving averages are tangled together—this indicates market consolidation. The wisest choice at this point is to stay silent and observe until the trend becomes clear before taking action.

Where is the true value of moving averages? In identifying the trend and then sticking to it. I’ve seen too many traders, after finally catching a wave, get scared when the price pulls back and miss the opportunity to double their gains. During an uptrend, prices will definitely retrace—that’s normal. But as long as the bullish arrangement of the moving averages remains, the trend isn’t over; hold on to your position.

**Candlesticks: The Tool for Precise Entry**

Candlesticks tell you the direction, but when to enter depends on recognizing candlestick patterns.