One Picture to Understand | 12 Types of Top-Taking Patterns (Part 1) (Content borrowed from the above money treasure)
Traders who can take the top are the ultimate winners.
Taking the top means constantly waiting for opportunities, not being washed out by waves of short-term rises and falls.
In addition to technical aspects, there are also these signals to reference for taking the top:
1️⃣ Market sentiment is overheated
Retail FOMO, Twitter heat explosion, the screen is full of "buy it, buy it."
💡 Indicator reference: Fear & Greed Index close to 90+
2️⃣ Abnormal capital flow
Large holders transferring coins to exchanges, trading volume increases, but the price can't rise, likely preparing to sell.
💡 Indicator reference: On-chain BTC inflow increases, OBV divergence
3️⃣ Macroeconomic signals
US stocks and gold at high levels, liquidity tightening, funds may withdraw first.
💡 Indicator reference: DXY, 10-year US Treasury yield, VIX
4️⃣ Excessive leverage
High perpetual funding rates, surge in borrowing, once a correction occurs, forced liquidations may lead to a chain decline.
💡 Indicator reference: Binance funding rate, TVL
5️⃣ Fundamentals do not keep up
Price reaches new highs, but on-chain activity and user growth do not synchronize, mostly speculation.
💡 Indicator reference: Daily active addresses, on-chain transaction volume
💡 Taking the top is not just about looking at charts, but also requires a comprehensive view of sentiment, capital, macroeconomics, and fundamentals.
The next article will continue discussing the remaining 7 types of top-taking patterns 🔥