Confused by complex indicators in short-term trading? You actually don't need to focus on a pile of data; one 7-day line is enough for you to determine the direction.

This line is essentially the average closing price of the last 7 days; you can think of it as the 'average cost line of the short-term market' — if the price is above it, most recent buyers are making money, and the momentum is strong;

If the price is below it, most recent buyers are trapped, and the momentum is weak. Using this line correctly can help you avoid 80% of the detours in buying and selling decisions.

First understand: The 7-day line is not mysticism; it's a 'cost thermometer'

Don't think technical indicators are very profound; the essence of the 7-day line is very simple: it's the average buying cost of all traders in the last 7 days. When the price is above this line, it indicates that most people are not losing, and market sentiment is positive; when the price is below, most people are trapped, and sentiment is likely to be low. It's like using a thermometer to gauge hot and cold; this line can help you quickly see the 'temperature' of the short-term market.

Buy signal: Stand above the 7-day line, 'stabilizing' is the key

Don't rush in just because the price spikes above the 7-day line; focus on whether it can 'stabilize.' There are two situations where you can take action:

① From offline 'steadily stands above' online

If the price has been lingering below the 7-day line, and one day it suddenly rises with significant volume, closing steadily above the line (not just intraday spiking then dropping), this is the first signal. Even more reliable is when the trading volume that day is significantly larger than before — this indicates that there is indeed capital scrambling for chips, not just a false rise, making it more reassuring to enter.

② Bouncing back after 'not breaking the line' while above

If the price is already moving smoothly above the 7-day line, and it dips slightly but doesn't break below the 7-day line before rising again, it's like tripping while running but not falling; it indicates that the upward momentum is still intact, so you can add to your position and proceed with confidence.

Sell signal: Break below the 7-day line, 'if it drops significantly' don't hesitate

Selling and buying are the opposite; the core focus is 'did it drop significantly.' Two situations must run:

① From online 'really breaks down' offline

If the price has been rising well above the line, and one day suddenly drops without recovering above the 7-day line by the close, be alert. Especially if there are particularly many sell orders that day and trading volume suddenly increases — this indicates that capital may be fleeing, and the momentum may weaken; don't hesitate, sell quickly, and don't wait to regret after being deeply trapped.

② A rebound from below that 'gets knocked down upon touching the line'

If the price has been below the line and bounces back, but just touches the 7-day line before being pushed down, you must run. It's like jumping and hitting a wall and falling back down; it indicates there are too many trapped positions above, and selling pressure is too great, making it hard to rise. Don't fantasize about a 'miraculous reversal.'

During a consolidation phase: Jumping up and down? Just lying still is winning

The easiest time to lose is during a consolidation phase: The price jumps up and down around the 7-day line; today it's above, tomorrow it's below, with no clear direction. At this time, don't let your hands itch; entering will just get you cut back and forth -- chasing after rises and selling during drops is purely giving money to the market.
Remember: The optimal strategy during a consolidation phase is 'not to act.' Just like waiting for a traffic light, when there's no clear green light (stabilizing above the line) or red light (breaking below the line), don't rush; wait until the direction is clear before taking action, which is 10 times better than blindly fidgeting.

Summary: The 7-day line is the 'fool's traffic light' for short-term trading

Pay more attention to opportunities online, be more cautious of risks offline, and treat the consolidation phase as 'rest time.' No need to calculate complex formulas or guess the intentions of the main forces; just focus on the price and its relationship with this line:

  • Stabilizing above the line + volume increase = can buy

  • Breaking below the line + volume increase = sell quickly

  • Jumping up and down = Don't act rashly


In short-term trading, don't fear missing opportunities; fear acting rashly. Treat the 7-day line as your 'buy/sell traffic light,' using simple rules to control your actions is much more reliable than relying on gut feelings to chase rises and falls.

Remember: Making money in the crypto world doesn't rely on mysticism; it relies on thoroughly understanding simple techniques and using rules as your confidence. Follow @钱包守护者 for more simple and practical operational skills, letting technology become your confidence for profit~