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No Trend, No Divergence: The Prerequisite for Identifying Exhaustion

No Trend, No Divergence: The Prerequisite for Identifying Exhaustion

The core principle of this lesson is "No trend, no divergence." Chan Theory strictly classifies all market movements into three states: uptrend, downtrend, and consolidation, determined by comparing successive highs and lows — both rising simultaneously signals an uptrend, both falling signals a downtrend, and a mismatch between them indicates consolidation. Divergence analysis is only meaningful after a clear trend (uptrend or downtrend) has been confirmed; within consolidation, only consolidation-type divergence exists, not trend-based divergence. All analysis must be grounded in a specific chart timeframe, since the same price action can appear as entirely different states across different levels. The validity of highs and lows must be filtered through a moving average system — only those occurring around moving average interactions (convergence, contact, or entanglement of short-term and long-term MAs) carry analytical significance at that level. Traders should choose chart timeframes that match their capital size, temperament, and trading style, and build a coherent trading system accordingly.

Ethereum Stays Steady Above $3,000 Based on Heightened Social Engagement

Ethereum Stays Steady Above $3,000 Based on Heightened Social Engagement

For the past ten days, Ethereum (ETH) has pitched camp above the psychological price of $3,000 based on increased social engagement.

Bitcoin on Exchanges Experience a Sharp 50-Day Drop, Suggesting Diminishing Sell-Side Pressure

Bitcoin on Exchanges Experience a Sharp 50-Day Drop, Suggesting Diminishing Sell-Side Pressure

Bitcoin on crypto exchanges has plunged to a 50-day low, as acknowledged by on-chain metrics provider Santiment.

Bitcoin Continues to Circulate in a Semi-Bullish Territory

Bitcoin Continues to Circulate in a Semi-Bullish Territory

Bitcoin is still in a semi-bullish area, given that circulation continues to be steady, according to on-chain metrics provider Santiment.

Bitcoin Circulation and Active Addresses Holding Steadily Despite Retracement

Bitcoin Circulation and Active Addresses Holding Steadily Despite Retracement

Bitcoin’s active addresses and circulation have not slowed down, despite the present correction because they have remained relatively strong.

Is Bitcoin Getting Ready for a Breakout?

Is Bitcoin Getting Ready for a Breakout?

There seems to be light at the end of the tunnel for a breakout in the Bitcoin market because the multi-month downtrend witnessed on the momentum indicator has broken out to the upside.

Bitcoin Funding Rates Have Calmed Down - Has Greed in the BTC Market been Neutralized?

Bitcoin Funding Rates Have Calmed Down - Has Greed in the BTC Market been Neutralized?

Bitcoin funding rates have slowed down since the leading cryptocurrency scaled to new heights of $69,000.

Bitcoin Net Inflows Records $315 Million in Total in October

Bitcoin Net Inflows Records $315 Million in Total in October

October will be written in Bitcoin’s history books as the month that saw the top cryptocurrency break the record by soaring to the $66,900 level.

Short-Term BTC Holders Experience Slight Profits as Bitcoin-Gold Realized Correlation Turns Negative

Short-Term BTC Holders Experience Slight Profits as Bitcoin-Gold Realized Correlation Turns Negative

Short-term Bitcoin holders have a reason to smile because they are back to profitability.

Bitcoin Touches $21K amid Fed's Interest Rate Hike Hitting a 28-Year High

Bitcoin Touches $21K amid Fed's Interest Rate Hike Hitting a 28-Year High

Bitcoin (BTC) was up by 2.90% in the last 24 hours to hit $21,782 during intraday trading, with news about the Federal Reserve’s interest rate increase of 75 basis points (bps) making airwaves.

Bitcoin Investors Owning Coins Aged Between Two and Five Years Hold Over 22.9% of BTC Supply

Bitcoin Investors Owning Coins Aged Between Two and Five Years Hold Over 22.9% of BTC Supply

As Bitcoin continues consolidating between the $30K and $40K range, BTC investors holding coins aged between two and five years are still confident about their investment.

Bitcoin Slips to $35.7K as Daily Active Addresses Hit a 5-Month High

Bitcoin Slips to $35.7K as Daily Active Addresses Hit a 5-Month High

Bitcoin (BTC) entered the weekend in the red after dropping to the $35.7K level based on a high number of daily active addresses, according to market insight provider Santiment.

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