Top divergence is like the yellow light on a car's dashboard – it doesn't necessarily mean you need to hit the brakes, but you should ease off the accelerator and fasten your seatbelt. Here are a few practical actions for when the "light comes on":

First, check the level

1h/4h divergence = overtaking too aggressively, take a break;

Divergence above the daily level = engine overheating, it's best to pull over and check.

The higher the level, the more you need to adjust your position accordingly.

Check the volume

Divergence + increased volume hitting the peak but not breaking the previous high → sell signal;

Divergence + decreased volume holding steady → just a change of hands, don't rush to reverse.

Adjust your position, not liquidate

Reduce high leverage and chasing positions first, keep the base position. This way, if a real drop occurs, your losses will be lighter, and if it really washes out and goes up, you'll still have ammunition to add.

Set “ammunition pits”

Look for the last 4h-daily level dense trading area to place buy orders – divergences often push the price to that point before bouncing back. Squatting in advance makes adding positions more comfortable.

Give yourself two trigger lines

Stop-loss line: break below key moving averages or support, exit remaining positions directly;

Add position line: wash into the chip area + volume warming up, dare to re-enter long.

When triggered, execute without hesitation.

Remember the trend priority

When the major trend is upward, top divergence is mostly for high-level turnover;

When the major trend is downward, top divergence is often the last escape wave.

First judge the trend, then decide whether the "yellow light" means to brake or merge.