After the stablecoin bill is released, how can you most simply and accurately catch the bottom and follow the trend? The TD indicator can fully meet your needs! Simple, intuitive, and suitable for most traders to get started.
1. What is TD?
The TD indicator is the simplest technical analysis tool. It is used to capture potential reversal points in market prices, assisting investors in making buy and sell decisions. The TD indicator primarily identifies cyclical fluctuations in the market and possible trend turning points, providing traders with clear buy or sell signals.
Thus, it is a left-side trading indicator that identifies trend reversals in advance, and it has advantages in the cryptocurrency market:
Trend reversals are clearer: In the cryptocurrency market, short-term price fluctuations are frequent, for example, the volatility of BTC, ETH, etc., makes it easier to generate "TD9" trading signals;
Suitable for beginners: The TD indicator is intuitive and easy to understand; by judging red and green signals, it can assist in trading;
Combines with grid strategies: The TD indicator is also suitable for use with automated strategies, such as the TD9 bottom-fishing strategy in programmatic trading.
In other words: TD9 bottom-fishing is not a "complex technical game," but rather visualizes market price changes into a "counting game," allowing every investor to easily understand and apply it.
2. Principles of the TD Indicator Strategy
1. Accurately identify the phase bottom of the trend, rejecting subjective speculation
The TD9 bottom-fishing strategy is based on specific counting rules, using quantitative analysis of the relationship between price fluctuations and trend continuation to find potential bottom signals from the market's real behavior:
● Core advantage: The TD9 count relies entirely on price data, unaffected by market sentiment or individual cognition, avoiding erroneous decisions caused by excessive subjective judgment.
● Unique mechanism: When the market experiences a continuous decline (meeting the TD9 counting rules), it indicates that the market is entering a state of "gradually weakening selling pressure"; the 9th candlestick in this state often signals that the market is approaching a phase bottom, and a larger rebound opportunity may be brewing.
In short: TD9 bottom-fishing is not about blindly capturing "any low point," but rather about finding bottom conditions that are gradually maturing and have a high success rate for low point signals.
2. "Early warning" of trend reversals, not waiting for the perfect bottom but often winning at the bottom
Unlike many indicators that provide lagging feedback in reversal markets, the TD9 countdown rule emphasizes capturing key moments of early bottom reversals:
● TD9 buy signal captures rebound logic: Momentum weakening: The TD9 countdown means that for nine consecutive periods, the price has been gradually declining, but the rate of decline is slowing;
○ Shorts have been exhausted: At this point, the previous concentrated selling has nearly run its course, and the bearish energy is depleted.
○ Huge upside potential: Although the market has not yet formed a clear upward trend, the "stagnation" indicates that buying pressure is about to take the initiative.
The TD9 signal captures hidden reversal opportunities that are often difficult for the average person to detect, thus achieving a trading strategy of "early ambush, seizing the initiative"!
3. Particularly suitable for high-volatility markets, such as cryptocurrency and forex trading
The TD9 bottom-fishing strategy is especially effective in high-volatility markets (such as Bitcoin BTC, Ethereum ETH):
● The cryptocurrency market is highly volatile, with prices frequently entering oversold conditions in short cycles; the TD9 signal can quickly identify these oversold opportunities;
● For investors pursuing "buy low, sell high," TD9 provides a clear low point entry logic, allowing them to fully utilize the characteristics of sharp price fluctuations in the crypto market.
4. The compounding effect of TD9 bottom-fishing is immensely valuable
The TD9 bottom-fishing strategy brings every trade back to the realm of "maximizing the risk-reward ratio"; even if the single profit is limited, its high win rate accumulates over the long term, resulting in astonishing compounding.
● Small losses await big gains;
● Capturing market rebounds with disciplined strategies;
● Multiple precise trades accumulate small gains into significant profits, ultimately achieving long-term stable profitability.
3. TD9 Bottom-Fishing Long Signal Effect
Figure 1 OKX-BTCUSDT perpetual contract 4-hour cycle signal effect
4. TD9 Bottom-Fishing Long Strategy Backtest Effect
Figure 2 OKX-BTCUSDT perpetual contract 4-hour cycle backtest effect
Backtest highlights: Yield reached 98.76%, win rate 59.65%
5. Indicator Source Code
// @version=2
// Calculate TD signal
[td] = td(close);
// Define overbought and oversold conditions
overbought = td == 9; // TD9 overbought
oversold = td == -9; // TD9 oversold
// Create alerts
alertcondition(overbought, title='TD9 Overbought', direction='sell');
alertcondition(oversold, title='TD9 Oversold', direction='buy');
// Plot signals on the chart
plotText(overbought, title='TD9 Overbought', text='Overbought', color='red', refSeries=high, placement='top');
plotText(oversold, title='TD9 Oversold', text='Oversold', color='green', refSeries=low, placement='bottom');
// Trading strategy
// Sell/close long
exitLong(overbought, price='market', amount=1);
// Buy/open long
enterLong(oversold, price='market', amount=1);
6. Conclusion
In trend trading, "catching the bottom" has always been one of the most desired skills for investors. However, not only is it difficult to seize the right timing for bottom-fishing, but most market declines may also be accompanied by panic and continued downward trends. The TD9 bottom-fishing strategy, with its unique counting logic and high probability reversal confirmation signals, truly provides investors with a scientific, rational, and highly practical bottom-fishing tool, hailed as the "secret weapon" for capturing trend lows.
The TD9 bottom-fishing strategy is not just a technical analysis tool; it is also a scientific trading philosophy. It quantifies market behavior, accurately identifies trend bottoms, and emphasizes risk control, providing traders with clear decision-making criteria in complex markets. Whether you are a beginner or a professional trader, it will be a powerful weapon for achieving your profit goals.
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