2026-01-16 17:30:51

There is a saying circulating in the market—buy at divergence, sell at consensus. This phrase makes some sense. When everyone is panicking and voices are diverse, it might actually be the bottom; conversely, when everyone is optimistic and opinions are uniform, be cautious that the ceiling may be approaching.

The longer the consolidation period, the more fierce the breakout once it occurs. You can see situations where the price fluctuates within a narrow range for months, then suddenly the trading volume surges, and the price moves sharply in one direction—this is often the beginning of a major trend.

But don’t be fooled—there’s a "trap" pattern to watch out for. After a rapid price surge, it immediately drops back to the original point, or after a quick decline, it bounces back up. This is a typical contract leverage wipeout. Spot traders are most easily confused by this rhythm; chasing the high can lead to getting caught.

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MEVHunterX

· 7h ago

Are you still talking about divergence and consensus? Sounds good in theory, but who the hell can stay calm in actual operation? Wait, I’m too familiar with this "trap" routine. Last time I almost got caught, now I see shadows on the candlesticks. Consolidation for a long time is indeed fierce, but the problem is how do you know this isn’t a false breakout? Alright, I’ll just stick to spot trading. Leverage really isn’t something humans should mess with. Buy on divergence, sell on consensus—sounds like a post-hoc rationalization.

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SerumSqueezer

· 22h ago

It's the same old story of buying during divergence. It's easy to say, but how many people actually manage to bottom out? Wait, this kind of trap is somewhat understandable. I was just caught in it last time; chasing the high, I got whipped out directly.

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tx_or_didn't_happen

· 22h ago

I think this set of theories sounds reliable, but in actual operation, it's really easy to get caught by the "drawing door" tricks... I was cleaned out once before, and now I tend to think a few seconds longer whenever I see sudden volume spikes.

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BottomMisser

· 22h ago

Haha, it's the same theory again, but the key is to distinguish whether it's a breakout or just a false move... I'm the one who got fooled and confused. What you said is correct, but in real trading, it's easy to fall into traps. Judging divergence and consensus is still a matter of hindsight. The current problem is that there are too many leveraged positions, and even spot trading is prone to fluctuations. It's hard to stay steady. Actually, it's just two words... I can't understand.

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MevTears

· 22h ago

Damn, this "Hua Men" trick is really clever. I was wiped out by it last time, chasing high and ending up bloodied.

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MechanicalMartel

· 22h ago

It's that same old "buy on divergence, sell on convergence" again, I'm so tired of hearing it that my ears are calloused, but if it were really that simple, everyone would be rich by now. This move by Huamen is brilliant; the contract leverage relies on this to harvest small spot traders. When chasing highs, you're often already caught in a trap.

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