In the crypto world, many people have experienced this awkward situation—just after buying in, the price plunges, and when they sell in a panic, it immediately surges. Staring at the K-line, feeling anxious, all decisions are based on intuition and luck. Frankly speaking, such trading is gambling. The truly consistent way to make money relies on a reusable trading system.

I have been using the "MACD Three-Strike Method" for 5 years, specifically to capture the main upward waves of mainstream coins. The method is not complicated, but it requires a genuine understanding of what the MACD indicator is telling us.

**Let's start with the three core points about MACD**

MACD alone is not a万能 tool, but completely ignoring it in trading often leads to big losses. The core logic boils down to these three points:

The crossover of the DIF line and DEA line is the basic signal. When DIF crosses above DEA, it’s called a golden cross, indicating a buy signal; conversely, crossing below is a death cross, indicating a sell signal. But note that a golden cross above the zero line is much stronger than one below the zero line, which determines the reliability of the signal.

The red and green bars reflect market momentum. Red bars represent bearish strength, and shortening indicates the downward momentum is weakening; green bars represent bullish strength, and increasing volume means strong upward momentum. The key is to watch whether, after the first increase in green bars, a second increase occurs—this often signals the true start of a main upward wave.

Divergence at the peaks and bottoms is the strongest signal for topping out or bottoming. If the price hits a new high but MACD does not, it’s a bearish divergence, indicating a correction is coming; conversely, if the price hits a new low but MACD does not, it’s a bullish divergence, usually signaling an imminent rebound. The success rate of such signals is quite high.

**Three-Strike Practical Trading Strategies**

First move: a second golden cross above the zero line. When the market completes its first golden cross above zero and rises, then pulls back without breaking below zero, and subsequently forms another golden cross with increasing green bars, this combination is a very strong buy signal. The subsequent rise is usually quite substantial.

Second move: bullish divergence combined with a volume-increasing bullish candle. When the price continues to fall and hits a new low, but the DIF line on MACD does not follow with a new low, forming a divergence. If at this point a volume-increasing bullish candle appears, it indicates funds are absorbing the sell-off, and a rebound is about to start. If caught correctly, this signal often allows you to buy at a good low point.