How a Courier Made 120x Gains With the Moving Average Method—And Why Discipline Beats Emotion

A delivery worker from Zhejiang province turned 500 USDT into 60,000 USDT within six months—a 120-fold multiplication that eclipsed a decade of wage accumulation. His secret wasn’t luck or insider tips, but a mechanical, rule-based approach to market timing. What strategy made this possible? Let’s examine the 5-day moving average framework that separates consistent winners from emotional traders.

Understanding the 5-Day Moving Average (MA5)

The 5-day moving average is fundamentally simple: a line plotting the average closing price across the past five trading periods. Think of it as a snapshot of collective cost basis during a short-term window. When price gravitates toward this line, it signals either capitulation by weak hands or accumulation by experienced players—depending on context.

Why does MA5 matter more than longer timeframes?

MA10 and MA30 reflect weeks of data and miss explosive breakouts. MA5 captures what’s happening right now in the market. It’s the difference between reacting to yesterday’s news and riding today’s momentum.

To implement this across any charting platform:

  1. Access your candlestick chart
  2. Enable the technical indicators menu
  3. Add a 5-period moving average
  4. Remove competing averages (MA10, MA30, etc.) to avoid signal confusion

The Core Logic: Price vs. Average Cost

Here’s the psychological underpinning: MA5 represents the weighted-average entry price of recent market participants. This creates predictable dynamics:

When in uptrend conditions: If price dips toward MA5 and bounces, buyers are stepping in at previous average cost. This is accumulation, not capitulation—a buying opportunity.

When in downtrend conditions: If price rallies toward MA5 and reverses, sellers are dumping into strength. This is distribution—a signal to reduce exposure or short.

The strategy works because it removes the guesswork. You’re not predicting; you’re observing where the crowd changes behavior.

Three Proven Entry Signals

Signal 1: The Breakout

  • MA5 transitions from declining to flat or rising
  • Price closes above MA5 with volume conviction
  • Action: Initiate long position

Signal 2: The Dip Buy

  • Price remains comfortably above MA5
  • A sudden 2-3% pullback occurs (panic selling)
  • Price stabilizes without breaking MA5
  • Action: Scale in or pyramid upward

Signal 3: The Strengthening Trend

  • MA5 maintains clear upward slope
  • Brief price weakness fails to reach MA5
  • Action: Buy the dip confidently

Three Essential Exit Signals

Signal 1: Divergence Warning

  • Price rises sharply but MA5 flattens or declines
  • Price is outrunning average cost—unsustainable
  • Action: Reduce position size, lock in partial profits

Signal 2: The Break Below

  • MA5 transitions downward
  • Price closes below MA5 on high volume
  • Action: Exit or establish short positions

Signal 3: Range-Bound Trap

  • Price oscillates narrowly above/below MA5
  • Neither buying nor selling pressure dominates
  • Action: Stay in cash; avoid sideways whipsaws

Trading Wisdom Distilled

The rhythm of profitable trading: Buy weakness when the trend is up; sell strength when the trend is down. Avoid choppy consolidation zones where MA5 offers no clear guidance.

On market psychology: The crowd loves extremes. When price soars far above MA5, greed dominates. When price crashes through MA5, panic dominates. The disciplined trader leans against these extremes.

Why this beats discretionary trading: Emotions shift faster than markets. A rule system lets you execute the same decision 100 times without hesitation or doubt.

Ten Alternative Strategies for Different Market Phases

  1. Two-directional trading (scalp both long and short setups)
  2. Core holding (accumulate BTC/ETH, lock away for 12+ months)
  3. Altcoin crash buying (deploy capital only when quality projects collapse 60%+)
  4. Scaled pyramid entry (buy more as price declines, averaging down)
  5. High-velocity trading (buy-sell at 2-3x gains, reinvest profits immediately)
  6. Emerging token method (chase new listings, rotate profits into next moonshot)
  7. Low-cap diversification (small positions across 10+ undervalued coins, await breakouts)
  8. Trend-following DCA (invest fixed amounts on MA5 touches during bull markets)
  9. Supply-shock trading (anticipate burn events, halvings, major ecosystem changes)
  10. Flow analysis (trade on-chain volume and whale accumulation patterns)

The Reality Check: Discipline Is Everything

Making money in crypto isn’t a mystery—people do it consistently. The real barrier is emotional control. A bullish engulfing candle tempts you to go all-in. A sharp drawdown triggers panic selling. Both impulses destroy wealth.

The moving average system is a guardrail. It forces you to think less and execute more. Instead of debating market direction during volatile price action, you follow a predetermined rule. The market rewards this mechanical approach because it keeps you in winning trades and out of losing ones.

A 30-day experiment: Commit to the MA5 framework without modification for one calendar month. Record every signal, every entry, every exit. Most traders discover profitability within this window because they finally have a system.

Final Warning: Intuition Isn’t Wisdom

The market manufactures false signals constantly. A powerful green candle doesn’t mean prices will keep rising—it might be a “bull trap” designed to liquidate aggressive buyers. A devastating red candle doesn’t signal collapse—it might be a “bear trap” shaking out weak shorts before a reversal.

Without a mentor or proven methodology, emotional trading becomes the default. And emotional traders are the food that feeds algorithmic traders and informed insiders.

Your edge isn’t superior prediction. It’s superior discipline. Follow MA5. Ignore your feelings. Let compounding work over months and years. That’s how couriers become millionaires.

BTC-1,63%
ETH-1,32%
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