From Delivery Worker to Crypto Trader: The Short-Term Moving Average Strategy That Turned 500 U into 60,000 U

The Real Story Behind the Numbers

A delivery worker from Zhejiang province made headlines by transforming 500 U (approximately 3,000 yuan) into 60,000 U (roughly 400,000 yuan) within six months—a staggering 120-fold return that surpassed a decade of earnings from package delivery. This isn’t a fantasy; it’s a case study in disciplined technical analysis. The strategy behind this remarkable gain? A deceptively simple but highly effective approach centered on the short-term moving average line.

Understanding the 5-Day Moving Average (MA5)

The 5-day moving average is fundamentally a line that connects the mean transaction prices recorded over the preceding five days. This technical indicator serves as a mirror of near-term market psychology and represents the collective average acquisition cost of market participants over that period.

Why does this matter? Because MA5 acts as a dynamic support or resistance level—it tells you where the market consensus currently stands on valuation.

How to Set Up MA5 on Your Trading Chart

  1. Navigate to the candlestick chart interface
  2. Locate and click the ‘Indicators’ option
  3. Search for and select ‘MA (Moving Average)’
  4. Configure to display only MA5, removing other averages (MA10, MA30, etc.) to minimize chart clutter
  5. Observe how price action interacts with this single line

The cleaner your chart, the clearer your trading decisions.

The Core Logic: What MA5 Actually Signals

When you understand what MA5 represents—the average holding cost over five days—the trading implications become crystal clear:

During an uptrend scenario: When price dips back toward or touches the MA5 line, this represents an accumulation zone. Market participants who entered near the 5-day average are sitting on small gains or break-even positions, creating a natural floor. This is your cue to add exposure or initiate long positions.

During a downtrend scenario: When price bounces back up to test the MA5 line, smart traders recognize this as a point of resistance where previous buyers might exit. This bounce presents an opportunity to reduce holdings or establish short positions.

The principle is timeless: Simplicity often outperforms complexity in trading. The most elegant solutions are rarely the elaborate ones.

Practical Application: Three Buy Scenarios and Two Sell Scenarios

When to Enter (Long Opportunities)

Entry Pattern 1: Breakout Through the Moving Average

  • The MA5 transitions from downward-sloping to horizontal or begins rising
  • Price closes decisively above MA5 and stabilizes above it
  • Action: Initiate or increase long position

Entry Pattern 2: Pullback Without Breaking Support

  • Price trades above MA5 in a generally higher range
  • Temporary weakness pulls price near MA5 but holds above it
  • Price quickly recovers without breaking below
  • Action: Add to existing position or maintain exposure

Entry Pattern 3: Dip-Buying in Strong Uptrends

  • MA5 maintains a persistent upward slope
  • Price temporarily retreats but doesn’t decisively break MA5
  • Subsequent candle(s) show recovery
  • Action: Buy the temporary weakness with conviction

When to Exit (Distribution Opportunities)

Exit Signal 1: Divergence Warning

  • Price advances significantly away from MA5, creating widening distance
  • RSI or momentum indicators begin to flatten or decline
  • Action: Reduce position size or take partial profits

Exit Signal 2: Breakdown and Failure to Hold

  • MA5 rolls over to flat or downward trajectory
  • Price breaks decisively below MA5
  • Recovery attempts fail to recapture MA5
  • Action: Exit position or go short

Strategic Mnemonics for Quick Decision-Making

📌 Never chase spikes at the top; never panic-sell at the bottom; never fight sideways consolidations

📌 The rhythm of profits: buy weakness, sell strength

📌 When highs are building a base before another thrust—exit and preserve capital. When lows are compressed and fresh lows print—accumulate with both hands

Ten Alternative Profit Strategies for Different Market Regimes

Beyond the MA5 approach, the crypto market rewards adaptability:

  1. Bidirectional Trading – Profit in both bull and bear markets by trading long and short
  2. Core Holding Strategy – Allocate to BTC/ETH exclusively, commit to 12+ month hold periods
  3. Bull Market Crash-Buying – Target quality altcoins in free-fall during bull phases only
  4. Scaled Entry Method – Buy in tranches, increasing size as prices decline
  5. Profit Reinvestment Cycle – Sell highs, redeploy gains into fresh positions
  6. New Listing Rotation – Cycle through emerging tokens, targeting 3-5x exits before moving on
  7. Penny Coin Portfolio – Diversify across low-priced assets, hold for explosive moves
  8. Volatility Capture – Time entries during panic events, exits during euphoria
  9. Trend-Following – Trade only in the direction of higher timeframe trends
  10. Risk-Layered Accumulation – Build positions gradually, never all-in on any single trade

The Psychological Edge: From Impulse to System

The hardest part of crypto trading isn’t understanding charts—it’s controlling your own mind.

Greed whispers: “The chart looks unstoppable, go all-in now.”

Fear shouts: “The red candles are huge, sell everything immediately.”

The MA5 strategy eliminates these voices. By anchoring decisions to objective price levels rather than emotional temperature, you replace reactive behavior with planned execution.

The real test: Take this method, commit fully to it for 30 days without deviation. Log every trade. Compare your disciplined results to your previous impulsive trading. The data will speak.

Final Perspective

Markets are designed to extract money from those who trade on feeling. They reward those who trade on principle.

Don’t let one giant green candle seduce you into over-leveraging; don’t let one giant red candle panic you into capitulation. The market manufactures illusions every single day. Emotional traders become victims. Systematic traders become winners.

If market direction seems unclear and you lack conviction, pause. Don’t force trades. The best trades are the ones where price behavior confirms your strategy, not the other way around.

The difference between recurring losses and recurring profits isn’t talent—it’s discipline. Start with MA5. Master it. Then expand.

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This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
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