1. Core mantra for trend judgment
Golden cross signal above the zero axis is a dividing line for long and short When operating above the zero axis, each golden cross is a strong signal, indicating that the coin price is expected to break through previous highs and start a new rising cycle.
Death cross below the zero axis warns of being in a weak zone below the zero axis, and the death cross indicates that bears dominate, often accompanied by the coin price reaching a new low in the stage, requiring vigilance against continued downward risks.
2. Long and short trend operation strategies
Low-level golden cross rebound nature The first golden cross below the zero axis is a technical rebound, do not blindly chase the rise, wait for an effective breakthrough and confirmation of trend reversal before intervening.
High-level golden cross main rising market A second golden cross above the zero axis establishes a strong bullish trend, and one can sell high and buy low along the moving average system until the top divergence signal appears before considering exiting.
3. Volume divergence trading rules
High-level shrinking red peak signal (sell small) After the coin price continues to rise, if the peak of the red bar fails to make a new high but instead shrinks, forming a "top divergence," it is necessary to decisively reduce positions to avoid pullback risk.
Low-level shrinking green bottom signal (buy small) In a downtrend, if the peaks of the green bars gradually narrow, indicating that bearish energy is exhausted, and a "bottom divergence" appears, one can gradually lay out positions to capture rebound opportunities.
4. Strategies for coping with extreme markets
High-level shrinking head rapid rise take profit After a short-term surge, if the MACD is far from the zero axis and the red bars shrink rapidly, it indicates serious overbought conditions, and one should timely take profits to avoid profit erosion.
Low-level golden cross rapid drop reversal occurs after a deep pullback away from the zero axis, usually a strong reversal signal; if a second golden cross is accompanied by increased trading volume, it often triggers a main rising wave market.
5. Techniques for identifying washout markets
Golden pit double cross bullish trend normal pullback, after a MACD death cross, a rapid golden cross within 7 trading days, and the green bars continue to shrink (forming a "golden pit"), this signals that the main force has completed the washout, and one can actively increase positions.
Key points for practical operation:
Zero axis defines long and short: Long above, short below, breaking the zero axis is the key to trend reversal.
Divergence strength judgment: Changes in the length of the bars reflect energy exhaustion, and the more divergence occurrences, the more reliable the signal.
Cycle resonance effect: Same direction signals at daily and weekly levels have a much higher win rate than single cycles.
Position management is crucial: Light positions for low-level signals to test and error, confirming breakthroughs before increasing positions, and decisively stop-loss for high-level signals.
(Note: The above rules must be combined with trading volume, K-line patterns, and overall market sentiment for comprehensive judgment. Cryptocurrency contract trading involves high risks, and it is recommended to use in conjunction with position management strategies.)
