Trading Notes: When "Drawing Gates" Becomes the Norm, How Should We View Indicators and News?

In the crypto market, we often see ETH suddenly surge violently and then quickly fall back to its original position. This "up and down drawing gates" operation confuses many traders who rely on indicators for trading. Today, let's deeply discuss the game logic between indicators and news.
1. News is the "动力" (driving force), Indicators are the "路径" (path)
Many traders find that during major news events (such as expectations of macro policy changes in early 2026), oscillators like RSI and KDJ become completely ineffective.
• Indicator dulling: When extreme market conditions erupt, J values may hover above 100 or below 0 for a long time, which is called indicator dulling.
• Core logic: News determines the direction and speed of the water flow (动力), while technical indicators only record the traces of the water flow (路径). When the动力 is very strong, the path can be forcibly widened or changed.
2. Emphasize "Structure," Light on "Indicators"
In extreme drawing gate markets, MACD golden or death crosses often lag behind, reducing their reference value. At this point, price structure is the only lifeline:
• Key structural levels: Observe ETH's recent performance, the strong support around 2,863.86, and the resistance formed by the 15-minute rebound high at 3,067.86. These physical levels are more real than any indicator.
• Bollinger Bands anchoring: On the 4-hour chart, the lower band (LB: 2,904.26) has provided critical support. When the price deviates too far from the structure, it will eventually revert to the middle band of Bollinger Bands (such as 2,955.40 on the 1-hour level).
3. The essence of "Drawing Gates": Liquidity Harvesting and Double Harvest
Why draw gates? Because the main force is using news to create a "liquidity vacuum."
• Bidirectional hunting: Raising prices to hit stop-losses of short positions, and smashing down to liquidate leveraged long positions.
• Operational strategy: In such markets, "left-side orders" (placing limit orders at key support/resistance levels in advance) are much safer than "market chasing orders." Because market orders can have huge slippage during volatile times and are easily chased at the top or bottom of the gate.
4. Practical Advice: How to Set Small Stop-Losses?
Based on the current market, keep it simple. Don't overthink it. You can do this:
• Short idea: Focus on the resistance near the 15-minute Bollinger Band upper band at 3,071.99. Set stop-loss above the 3,100 level.
• Long idea: Focus on the strong support at 2,863.86 from the previous bottom rebound. Set stop-loss around 2,850.
Summary: Market sentiment changes rapidly; news determines the height of the trend, while structural analysis determines your safety margin. Instead of chasing after the trend after it starts, wait quietly at key levels for the prey.
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