After ten years of trading cryptocurrencies, what I am most grateful for is that after the third liquidation, I truly understood MACD divergence. That was a lifesaver I bought with over three million as tuition.
In December 2017, BTC was approaching its historical high of twenty thousand dollars, and the whole network was in a frenzy. However, I noticed something strange on the four-hour chart: the price kept surging, but the MACD red energy bars were getting shorter.
At two in the morning, I stared at the top divergence screenshot of ETH from three years ago for a long time, and eventually closed all long positions. A week later, the market halved, and countless contract accounts vanished into thin air.
What really allowed me to systematically apply divergence was the "Black Thursday" in March 2020. At that time, the market was in extreme panic, but I found that BTC's weekly chart showed a bottom divergence: the price hit a new low for the year, but the green energy bars were more than thirty percent higher than the previous low point.
I quietly monitored a few whale addresses on-chain and found they were continuously accumulating. So, I gradually built my position, and later when Defi Summer exploded, my account value quadrupled.
These years I have summarized two iron rules:
Multi-cycle verification
A daily bottom divergence is just a signal; I must wait for a second golden cross on the four-hour chart, and the trading volume must increase more than three times before taking action.
Divergence failure mechanism
If the price consolidates for more than five cycles without a significant increase in the energy bars, it indicates that the main force is observing; at that point, it is better to miss out than to make a mistake.
The most thrilling moment was during the Dogecoin frenzy in 2021. At that time, Musk kept calling for buying, and the price soared to 0.7 dollars, but the MACD energy bars were not even half of the previous high. While the community was clamoring to "hit 1 dollar", I liquidated my position, and three days later, the coin price dropped by sixty percent.
Many people treat MACD as an ordinary indicator, but those who have truly experienced bull and bear markets know it is a thermometer for market sentiment. Top divergence is the fingerprint left by the main force when pushing the price up to sell, while bottom divergence is the white mist they exhale while quietly accumulating.
Now I only do three things every day: scan the weekly divergence signals of the top fifty coins, monitor large on-chain movements, and wait for the hitting point of multi-cycle resonance. This restraint allowed me to not only avoid losses in the bear market of 2022 but also profit by 60% from the bottom divergence layout of SOL.
Market sense is learned from losses, but the system is realized through understanding. MACD divergence taught me not only the technique but also how to coexist with human greed.
In the past, I was wandering alone in the dark; now the light is in my hands.
The light is always on; will you follow? @币来财888
In December 2017, BTC was approaching its historical high of twenty thousand dollars, and the whole network was in a frenzy. However, I noticed something strange on the four-hour chart: the price kept surging, but the MACD red energy bars were getting shorter.
At two in the morning, I stared at the top divergence screenshot of ETH from three years ago for a long time, and eventually closed all long positions. A week later, the market halved, and countless contract accounts vanished into thin air.
What really allowed me to systematically apply divergence was the "Black Thursday" in March 2020. At that time, the market was in extreme panic, but I found that BTC's weekly chart showed a bottom divergence: the price hit a new low for the year, but the green energy bars were more than thirty percent higher than the previous low point.
I quietly monitored a few whale addresses on-chain and found they were continuously accumulating. So, I gradually built my position, and later when Defi Summer exploded, my account value quadrupled.
These years I have summarized two iron rules:
Multi-cycle verification
A daily bottom divergence is just a signal; I must wait for a second golden cross on the four-hour chart, and the trading volume must increase more than three times before taking action.
Divergence failure mechanism
If the price consolidates for more than five cycles without a significant increase in the energy bars, it indicates that the main force is observing; at that point, it is better to miss out than to make a mistake.
The most thrilling moment was during the Dogecoin frenzy in 2021. At that time, Musk kept calling for buying, and the price soared to 0.7 dollars, but the MACD energy bars were not even half of the previous high. While the community was clamoring to "hit 1 dollar", I liquidated my position, and three days later, the coin price dropped by sixty percent.
Many people treat MACD as an ordinary indicator, but those who have truly experienced bull and bear markets know it is a thermometer for market sentiment. Top divergence is the fingerprint left by the main force when pushing the price up to sell, while bottom divergence is the white mist they exhale while quietly accumulating.
Now I only do three things every day: scan the weekly divergence signals of the top fifty coins, monitor large on-chain movements, and wait for the hitting point of multi-cycle resonance. This restraint allowed me to not only avoid losses in the bear market of 2022 but also profit by 60% from the bottom divergence layout of SOL.
Market sense is learned from losses, but the system is realized through understanding. MACD divergence taught me not only the technique but also how to coexist with human greed.
In the past, I was wandering alone in the dark; now the light is in my hands.
The light is always on; will you follow? @币来财888
