The indicators I use in short-term trading can provide clear signal points for long short conversions at the 10 minute to 1-hour level. Moreover, it also has high auxiliary value under high-level time conditions. For example, if we switch to a 3-day line: The current 3-day K and trend indicators of BTC have deviated from each other, indicating that the downward momentum in this level is gradually being absorbed. The downward momentum is strongest when the first red dot appears, and then the price consolidates, gradually returning to the central axis and causing divergence. (Figure 1) Similar situations have also occurred between February and April of the 25th year. The first red dot corresponds to K, which deviates the most from the trend line and has the strongest potential energy; Afterwards, the candlestick fluctuated downwards, but the indicator gradually returned to the central axis, while an oversold signal appeared. Afterwards, a trend reversal occurred. The same case also occurred in 2021-2022: The first red dot appears during the occurrence of the 5.19 Black Swan event, and the process followed thereafter is the same: price deviates from the trend line - the indicator gradually returns to the central axis - forms a deviation - the deviation between price and trend line narrows - a strong rebound; (Figure 2) But after the divergence and oversold signal appeared in July 2022, the price was suppressed as it approached the trend line and was unable to effectively break through (BTC $23000) until the FTX explosion triggered a second divergence and a slight oversold signal (BTC $15800). Afterwards, in January 2023, it broke through the trend line and opened a new bull market. In summary, the following two situations may arise: 1. As the price continued to fluctuate, the deviation between the 3-day K and the trend line gradually narrowed, eventually breaking through and opening up a strong rebound market. 2. On the 3rd, K continued to decline after being suppressed by the trend line, and the indicator showed a second divergence+oversold signal, followed by a strong breakthrough market. Considering that the current trend line is still slightly away from the 3-day K, there is currently no possibility of a rapid breakthrough. Meanwhile, since the first divergence has already absorbed most of the downward momentum, even if there is a second divergence, as long as it is not a super black swan event, theoretically the magnitude of the second dip will be relatively limited compared to the previous one. At present, based on the on chain data (emotions and behaviors), there is also a demand for rebound. If combined with the K-line indicator, my personal plan is to start adding positions on the right side when the price approaches the trend line; If there are two oversold+divergence signals, add another one; Until the next occurrence of overbought+top divergence signals, take profit on this portion of the position depending on the situation. The above is only for learning exchange and not for investment advice! ------------------------------------------------- Bitget VIP， Lower rates and more generous benefits