Dear trading frens, do you find it very difficult to read Candlesticks? In fact, what institutions and Large Investors focus on is often the simplest things – just two MA lines. Buy on golden cross pattern, sell on death cross, this theory anyone can mention. The problem is, nine out of ten people use it incorrectly, and the root cause is only one: they don’t understand the true function of moving averages.

Moving averages are not predictive tools. They cannot tell you whether the future will rise or fall. They only do one thing - confirm that a trend has formed. This may not sound special, but that is the significance of lag. When the 5-day line crosses the 20-day line to form a golden cross pattern, the market may have already risen significantly. By the time the death cross appears, losses may have already accumulated. Sounds like a loss? Actually, if you think about it the other way, this "slow half beat" is its core value. It helps filter out market noise, allowing you to only follow confirmed trends, without guessing where the tops and bottoms are. Especially when the market is highly volatile, this seemingly simple "dual moving average strategy" often outperforms those flashy complex models.

Commonly used combination schemes:
5-day matches 20-day - responsive, suitable for players who frequently engage in short-term operations.
10 days paired with 50 days - a more stable approach that can filter out many false signals, making it the first choice for medium-term positions.

But that's just how heartbreaking reality is. Waiting for the trend to be completely established before entering the market is indeed safer, but you've already missed the most exciting part of the market. And once the market reverses rapidly, the moving averages react slowly, and your stop-loss might become a bit awkward.

What should we do? There needs to be a more stable operational framework. This is also why more and more mature traders are starting to lay a solid foundation with infrastructure like stablecoins. Trend trading emphasizes following the trend, but you have to survive long enough and stand firm enough to truly benefit from this market wave.