In the increasingly volatile market of Solana, the key to achieving robust operations lies in constructing a multi-dimensional, mutually validating technical analysis framework rather than relying on a single indicator.
Resonance Analysis of Trend and Momentum Indicators:
Convergence and Divergence of Moving Averages (MA):
Buy Signal: When the short-term MA (such as MA7) crosses above the mid-term MA (such as MA25), forming a 'golden cross', and all moving averages are in a bullish arrangement diverging upwards, it indicates the establishment of an uptrend, and buying can be considered when the price stabilizes near the moving averages.
Sell Signal: When the short-term MA crosses below the mid-term MA forming a 'death cross', and the moving averages are in a bearish arrangement diverging downwards, it indicates the formation of a downtrend, and selling or risk avoidance should be considered.
MACD (Moving Average Convergence Divergence):
Buying Point: The DIF line (fast line) crosses above the DEA line (slow line) forming a golden cross, and the MACD histogram turns positive. More importantly, pay attention to bottom divergence (price makes a new low while the MACD indicator does not make a new low), which is usually a strong indication of trend reversal.
Selling Point: The DIF line breaks down through the DEA line forming a death cross, and the MACD histogram turns negative. Watch for top divergence (price makes a new high while the MACD indicator does not make a new high), which is a warning of potential pullback.
RSI (Relative Strength Index):
Buying Point: RSI drops below 30 (oversold area) and shows an upward turn or bottom divergence (price makes a new low, but RSI does not).
Selling Point: RSI rises above 70 (overbought area) and shows a downward turn or top divergence (price makes a new high, but RSI does not).
Volume-Price Relationship and Support-Resistance Confirmation:
Volume Analysis: A healthy uptrend should be accompanied by increasing volume, while a downtrend should be accompanied by declining volume. If there is a divergence between price and volume during an uptrend (price makes a new high but volume does not increase effectively), caution is warranted.
Breakthrough and Pullback of Key Support/Resistance Levels: When the price effectively breaks through an important resistance level (such as previous highs or trend lines), it is usually a buy signal. If there is a pullback confirming support after the breakout, the buying opportunity is more robust. Conversely, breaking below key support levels is a sell signal.
Volatility Channel Indicator:
Bollinger Bands:
Buying Point: The price drops near the lower Bollinger Band and shows a candlestick reversal pattern (such as a hammer or morning star), combined with buy signals from other indicators.
Selling Point: The price reaches near the upper Bollinger Band and shows a bearish candlestick pattern (such as a shooting star or dark cloud cover), combined with sell signals from other indicators.
Bollinger Band Contraction and Expansion: A narrowing Bollinger Band indicates a decrease in market volatility, potentially brewing a significant directional choice; the expansion of the Bollinger Band confirms the formation of a trend.
The core to achieving robust operations lies in: multi-indicator resonance confirmation. For example, when the MA forms a golden cross, MACD shows a golden cross, RSI rebounds from the oversold area, and volume increases simultaneously, the reliability of such buy signals will be significantly enhanced. Additionally, strictly adhering to trading discipline, effective capital management, setting stop-loss and take-profit levels, and avoiding emotional decision-making are essential factors for coping with highly volatile markets and achieving long-term stable profits.
