【ACX Short Selling Warning: Just because it has risen a lot doesn't mean you should short, waiting for signals is more important than gambling】
A bloody lesson:
Just because it has risen a lot is never a reason to short. That's emotion, not logic.
RSI 85% only tells you "it has taken a breath," but does not tell you "it has stopped breathing."
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1. Why is “shorting just because it has risen a lot” a suicidal act?
• Indicators can deceive: An RSI of 85% in a strong market can stay high without falling for a week; this is called "indicator dulling," specifically treating all the stubborn bears.
• Emotion is dynamite: Retail investors are all looking at RSI 85%, thinking "it's time to short," which is exactly what the main force looks forward to—using a violent surge to trigger all short stop-losses, then turning around and crashing down.
• Volatility is a sickle: For such small coins, rises and falls depend entirely on the feelings of the operators. What you think is a "high point" may just be the starting point for the next wave of rises.
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2. What are the “exact short-selling signals”?
Wait for these three signals to appear simultaneously before taking action:
1. Technical confirmation:
◦ 4-hour K-line closing price drops below MA20.
◦ After RSI 85%, a top divergence appears (new high in price, RSI not reaching a new high).
2. Sector confirmation:
◦ Cross-chain leader ZRO leads the decline, and the sector collectively "stalls."
3. Volume confirmation:
◦ During a crash, the volume increases, and during a rebound, the volume decreases, indicating that funds are offloading.
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3. If you must "take a gamble," remember three life-saving rules:
• Position is life: No single trade should exceed 1% of total capital; this is gambling, not investing.
• Stop-loss is the soul: Set stop-loss before opening a position, never hold onto a position.
• Time is a ghost: If not profitable within the day, close the position; don’t spend the night with uncertainty.
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Final piece of advice:
In the world of ACX, rises are consensus, and declines are conspiracy. What you think is a "shorting opportunity" is likely a "bait trap" set by the operators at the door.
It's better to wait for the trend to emerge by itself than to be a "counter-trender" in the trend—because the ones who die are usually the first batch.
A bloody lesson:
Just because it has risen a lot is never a reason to short. That's emotion, not logic.
RSI 85% only tells you "it has taken a breath," but does not tell you "it has stopped breathing."
------
1. Why is “shorting just because it has risen a lot” a suicidal act?
• Indicators can deceive: An RSI of 85% in a strong market can stay high without falling for a week; this is called "indicator dulling," specifically treating all the stubborn bears.
• Emotion is dynamite: Retail investors are all looking at RSI 85%, thinking "it's time to short," which is exactly what the main force looks forward to—using a violent surge to trigger all short stop-losses, then turning around and crashing down.
• Volatility is a sickle: For such small coins, rises and falls depend entirely on the feelings of the operators. What you think is a "high point" may just be the starting point for the next wave of rises.
------
2. What are the “exact short-selling signals”?
Wait for these three signals to appear simultaneously before taking action:
1. Technical confirmation:
◦ 4-hour K-line closing price drops below MA20.
◦ After RSI 85%, a top divergence appears (new high in price, RSI not reaching a new high).
2. Sector confirmation:
◦ Cross-chain leader ZRO leads the decline, and the sector collectively "stalls."
3. Volume confirmation:
◦ During a crash, the volume increases, and during a rebound, the volume decreases, indicating that funds are offloading.
------
3. If you must "take a gamble," remember three life-saving rules:
• Position is life: No single trade should exceed 1% of total capital; this is gambling, not investing.
• Stop-loss is the soul: Set stop-loss before opening a position, never hold onto a position.
• Time is a ghost: If not profitable within the day, close the position; don’t spend the night with uncertainty.
------
Final piece of advice:
In the world of ACX, rises are consensus, and declines are conspiracy. What you think is a "shorting opportunity" is likely a "bait trap" set by the operators at the door.
It's better to wait for the trend to emerge by itself than to be a "counter-trender" in the trend—because the ones who die are usually the first batch.