Short-term Trading Strategy Three and Four (Essential for Profit)

Those who excel in ultra-short-term cryptocurrency trading (usually holding positions for a few minutes to a few hours) have a core demand to capture short-term fluctuations, quickly identify turning points, and control risks. Common technical indicators focus on "high sensitivity and timely signals," mainly including the following categories:

3. Volume Auxiliary Indicators (Verifying the Authenticity of Short-term Market Trends)

- Trading Volume (Volume, observed in small cycles): In ultra-short-term trading, long-term volume is not considered; only the "current candlestick's volume compared to the previous few candlesticks' volume" is observed. For example: when prices rise rapidly, if the trading volume increases simultaneously, it indicates that the short-term buying is genuine, and one can hold temporarily; if prices rise but the trading volume "suddenly shrinks," it indicates a "volume-less top," and one should take profit immediately; similarly, during a decline, if the volume increases, one should stop loss, while if the volume decreases, one can observe whether it stabilizes.

- Volume Ratio: Reflects the ratio of current trading volume to recent average trading volume; ultra-short-term traders often use the "5-minute volume ratio." A volume ratio greater than 1.5 indicates an increase in short-term trading activity, with a high probability of trend continuation; a volume ratio less than 0.8 indicates a decline in activity, and short-term fluctuations may narrow, necessitating a reduction in trading activity.

4. Special Auxiliary Tools (Enhancing Signal Accuracy)

- Intraday Average Price Line: The "real-time trend line" for ultra-short-term trading, in 5-minute or 15-minute intraday charts, when prices are above the average price line and the average price line is turning upward, it indicates short-term bullish dominance; when prices fall below the average price line and the average price line is turning downward, it indicates short-term bearish dominance, which can serve as a reference for quick opening/closing of positions.

- RSI (short-term parameters, such as 6 days): The default 14-day RSI is relatively slow; ultra-short-term trading uses the 6-day RSI, which is more likely to trigger overbought (above 80) or oversold (below 20) signals. Combined with price "divergence" (for example, when prices reach new highs but the RSI does not), it allows for quick judgment of short-term tops to avoid chasing highs. #BNB创新高 #加密市场反弹 #MEME币狂欢 #CPI数据来袭 $BTC $ETH $BNB