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Looking at this wave of market, the clear signal to go short is already evident. The MACD death cross above the zero line is imminent, coupled with secondary divergence in momentum and high-level stagnation, all pointing to a strong bearish signal.
To confirm the death cross, look for these three points:
1. DIF's turning point crossing below, passing the DEA above the zero line
2. Formation of bearish engulfing or shooting star patterns in 1 to 4-hour K-lines
3. Volume-driven decline combined with pattern resonance for double confirmation
The real key is how to manage risk. If you're more aggressive, place your stop-loss 1%-1.5% above the previous high, with losses not exceeding 2%. For a more conservative approach, set your stop-loss 2% above the support level of the double lines. Most importantly, if there's a sharp decline without rebound, exit decisively—don't hesitate.