How to Use the Stochastic Relative Strength Index (StochRSI) in Trading: A Complete Beginner's Guide
<div data-page-id="VuKLd32Cdot2lIxG2A4uxe8xs3O" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-doxusipLHi7zjI7zgzg0RDNPgsc"><strong>Key takeaways</strong></h2><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-doxusCT2MzSB5byzYdB4YQzqzgf" data-list="bullet"><div><span style="font-size: 16px;">The Stochastic Relative Strength Index (StochRSI) is a highly sensitive momentum indicator that applies the stochastic oscillator formula to RSI values.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxus7OldjnWzxOOnZCWgxJVkDf" data-list="bullet"><div><span style="font-size: 16px;">The indicator moves between 0 and 100. Readings above 80 indicate overbought conditions, while readings below 20 indicate oversold conditions.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxuskqVNpZs1BDsLJPFXNKxXWg" data-list="bullet"><div><span style="font-size: 16px;">Crossovers between the fast and slow lines are a key way to identify potential buy and sell opportunities.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxus6wpaz2MLH9ZTpMcmRVrKId" data-list="bullet"><div><span style="font-size: 16px;">Different trading timeframes may require different parameter settings to balance signal frequency and accuracy.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxus8wXjfdNgCUNJD9fc7cBLFh" data-list="bullet"><div><span style="font-size: 16px;">You can add StochRSI directly to the chart on MEXC and use it alongside other tools to confirm signals.</span></div></li></ul><div style="text-align:left" class="ace-line ace-line old-record-id-doxusxLn8q230J67tynWnropEfh"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxus9Fxao0bxU16SSOh5hJvPmg"><strong>1. What is the Stochastic Relative Strength Index?</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusxQsQw0sMOrsGANGjTGkSSe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusZHA9HAgkgLkvcBZm3ODU8I"><span style="font-size: 16px;">The Stochastic Relative Strength Index (StochRSI) does not measure price directly. Instead, it applies the stochastic oscillator formula to Relative Strength Index (RSI) values, which is why it is often described as an "indicator of an indicator."</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusioazhVo8cWaUSApsmXGU4d"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus9xnYXopYmmlm3kbWZsAzLf"><span style="font-size: 16px;">StochRSI is calculated by subtracting the lowest RSI value over the past 14 periods from the current RSI value, then dividing the result by the difference between the highest and lowest RSI values over the same period. The result moves between 0 and 100, allowing the indicator to respond quickly to changes in market momentum.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusKq4SMmFirMGTYHd31aLhth"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusC55fCvxvIxA6g1ztaRNIXg"><span style="font-size: 16px;">StochRSI has two lines. The fast line, or K line, tracks the current value and reacts quickly to market changes. The slow line, or D line, is usually a three-period moving average of the fast line. It is smoother and helps filter out noise and confirm signals.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusQBmB0cYHK20noetdrFjo9d"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"85768a4e-bec5-4af2-9f3d-3b2757b9dd48","height":699,"width":1170,"currHeight":699,"currWidth":1170,"natrualHeight":699,"natrualWidth":1170,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FK8Vbb1RShoNjjsxus9vuXLyIs1b%2F%3Fpreview_type%3D16","file_token":"K8Vbb1RShoNjjsxus9vuXLyIs1b","image_type":"image/jpeg","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlgI0tp4mLQqy6IjbS5416wJf"><img src="https://l7jipx1bfq.larksuite.com/space/api/box/stream/download/asynccode/?code=ZWMwNjA2NjFmNmU0OTk5OTE1Yjg0NzBiNDNmOGNlOWVfNlRUSlBRZEl0OUZHV2dWVVY4MGM1eFA5QzhzUUJKQW5fVG9rZW46SzhWYmIxUlNob05qanN4dXM5dnVYTHlJczFiXzE3ODgyNjk5MzA6MTc4ODI3MzUzMF9WNA&add_watermark=true&scene_type=CCM" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJLOFZiYjFSU2hvTmpqc3h1czl2dVhMeUlzMWIiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGdJMHRwNG1MUXF5NklqYlM1NDE2d0pmIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9LOFZiYjFSU2hvTmpqc3h1czl2dVhMeUlzMWIvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/K8Vbb1RShoNjjsxus9vuXLyIs1b/?mount_node_token=doxlgI0tp4mLQqy6IjbS5416wJf&mount_point=docx_image" data-width="1170" data-height="699" data-lark-image-uri="drivetoken://K8Vbb1RShoNjjsxus9vuXLyIs1b" data-lark-image-width="1170" data-lark-image-height="699" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxust8Yj49OFbv38BmriYXsfcc"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxus2UZs1hI6ZQEQH6xNTjuDBc"><strong>2. StochRSI parameter settings</strong></h2><div class="ace-line ace-line old-record-id-doxusCKjU53KcIEbVrEihzplW7g"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxus8QKDJmzxXl4p7If3eCEEKd"><span style="font-size: 16px;">2.1 Default settings</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusVANPFxLJ9RnGUOq5uSCIXd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusrIPvJJSP9FaRwVYKwhSbPd"><span style="font-size: 16px;">The standard configuration uses an RSI Period of 14, a Stochastic Period of 14, Smooth K of 3, and Smooth D of 3. The default overbought and oversold thresholds are 80 and 20, respectively.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusJtzte4aWWshowUfG3h2JJg"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusT96gZESBpGnavNyPoZbnTg"><span style="font-size: 16px;">2.2 Intraday trading settings for 5-minute and 15-minute charts</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusDWwdTSxtCIIYXQJR7NLWsg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusjEzwuHtd5xilXUfbRQbXzd"><span style="font-size: 16px;">For intraday trading on 5-minute or 15-minute charts, the default 14, 3, 3 settings are generally a practical starting point. Focus on highly liquid major trading pairs. Because signals appear frequently and may contain more noise, use a strict trend filter before acting on them.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusGciVc2vGbegkM0hBXtEJOh"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusXG2KLMWqlCUivWi4FHHN5e"><span style="font-size: 16px;">2.3 Swing trading settings</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusQ4v3egMocaTbCCdLw0c5qf"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusfJtvlCrm1WAfo7s7UCWfWd"><span style="font-size: 16px;">For swing trading on the daily chart, consider increasing the period to 21 and the smoothing settings to 5. Slower settings can reduce false signals in choppy markets.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusiIoOtWgHHaDv6MpvmKhfEh"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"fc657db5-bc7c-47ce-b9da-0ec42a1df7e3","height":554,"width":1174,"currHeight":554,"currWidth":1174,"natrualHeight":554,"natrualWidth":1174,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FA9URb31HYoUN0GxCfVduGCCDsZf%2F%3Fpreview_type%3D16","file_token":"A9URb31HYoUN0GxCfVduGCCDsZf","image_type":"image/jpeg","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlgaD8JQCeOrwNXUrXKUGq7eb"><img src="https://l7jipx1bfq.larksuite.com/space/api/box/stream/download/asynccode/?code=ZDZlNzM3ZDAzMmFhOTRhNmE4YTNmZGMzODMzOGJmNjhfbWJGZHRiMGV6RGVNa3FIbkR4Yk5CSThCZlJnaFhBRTFfVG9rZW46QTlVUmIzMUhZb1VOMEd4Q2ZWZHVHQ0NEc1pmXzE3ODgyNjk5MzA6MTc4ODI3MzUzMF9WNA&add_watermark=true&scene_type=CCM" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJBOVVSYjMxSFlvVU4wR3hDZlZkdUdDQ0RzWmYiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGdhRDhKUUNlT3J3TlhVclhLVUdxN2ViIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9BOVVSYjMxSFlvVU4wR3hDZlZkdUdDQ0RzWmYvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/A9URb31HYoUN0GxCfVduGCCDsZf/?mount_node_token=doxlgaD8JQCeOrwNXUrXKUGq7eb&mount_point=docx_image" data-width="1174" data-height="554" data-lark-image-uri="drivetoken://A9URb31HYoUN0GxCfVduGCCDsZf" data-lark-image-width="1174" data-lark-image-height="554" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusC7GQMvLjR8t3lHyuZ8Vcxh"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxus4SDQB3d3adbaMA0qPDWBRf"><strong>3. How to interpret StochRSI signals</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusfT9S4Xjmr4BSUycXTYmtud"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxus6zUZkArmQPUiDMnop98qQf"><span style="font-size: 16px;">3.1 Overbought and oversold conditions</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusbdtXwGT3SyDfoQBK9AG29f"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusW9GGMFRExtIvbwnTYRVyRg"><span style="font-size: 16px;">A reading above 80 indicates that the market is overbought and may be due for a pullback. A reading below 20 indicates that the market is oversold and may rebound. However, during a strong trend, StochRSI can remain in an extreme zone for an extended period. Overbought does not mean that the price will immediately fall, and oversold does not mean that it will immediately rise.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusoh7vpu9oH73PSNZZ65ljje"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusmCmEi3PCj4MBssyNPFE3Rh"><span style="font-size: 16px;">3.2 Buy and sell signals</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxuspIVwKnEztj24pfwPP8z4Xg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusjfEEHdZSgRgeiQcgrKqjKg"><span style="font-size: 16px;"><strong>Buy signal:</strong> When StochRSI is below 20 in the oversold zone and the fast line crosses above the slow line, bearish momentum may be weakening.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusIY9RJypimbkb9dI5Xnjn1e"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus2IAjXlBnOzSb6OMszTVx7d"><span style="font-size: 16px;"><strong>Sell signal:</strong> When StochRSI is above 80 in the overbought zone and the fast line crosses below the slow line, bullish momentum may be losing strength.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusY7wC8KdeYFNGR0QJ846KBd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusxEmRZ5Ue5r44dzf12R9RRc"><span style="font-size: 16px;">The first crossover within an extreme zone is often the most reliable. Crossovers in the middle of the range generally require confirmation from other tools.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusztk5sEBRS5DMk6lcDvjLmf"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusH2diXkJIUAOUHcK1RkAwBe"><span style="font-size: 16px;">3.3 Divergence signals</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusarQYqRXM7SuSWWG5plr3nb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusujBankI4KfRXshvciehndh"><span style="font-size: 16px;">A bullish divergence occurs when the price makes a lower low while StochRSI forms a higher low, suggesting a possible upward reversal. A bearish divergence occurs when the price makes a higher high while StochRSI forms a lower high, suggesting that upward momentum may be weakening. Divergences on the daily chart generally carry more weight.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusMo5LwthQkv8AoL1N82NvSb"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusgVVuV8vfsu8Zll5rUwEskg"><strong>4. How to use StochRSI for trading on MEXC</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusnbxeV2H3qR9lLb1PZ2G6td"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusuXGfQ6ZpZDs5CeT3AlXIUg"><span style="font-size: 16px;">You can add StochRSI to the <a data-lark-is-custom="true" href="https://www.mexc.com/futures/BTC_USDT">Futures</a> chart on MEXC. The following workflow is provided for educational purposes:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusqYKCibLwqxD6SzK2nZN7Jd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusTrExSTiHmy04f82MgBNBCc"><span style="font-size: 16px;"><strong>1) Identify the trend direction.</strong> Add a 50-period <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-exponential-moving-average-indicator-in-trading-416907527621799936">Exponential Moving Average (EMA)</a> as a trend reference. When the price is above the EMA, the market environment is generally bullish. When the price is below the EMA, it is generally bearish.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusajo3IqSGwjmkefndoLnToe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusy5dTXT7OrWO5P6MsoEXa2e"><span style="font-size: 16px;"><strong>2) Identify the signal pattern.</strong> In an uptrend, a bullish crossover—where the fast line crosses above the slow line after StochRSI enters the oversold zone—may indicate renewed momentum. In a downtrend, a bearish crossover in the overbought zone may indicate weakening momentum.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuswkyYt4twjHcDOxz9gFOnSb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusk5J3m9fNNJXKQL5EplP1Fd"><span style="font-size: 16px;"><strong>3) Confirm with multiple tools.</strong> No single indicator is reliable in every market condition. Combine StochRSI with support and resistance levels, trading volume, and candlestick patterns to build a more complete analysis.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusnGVZyd2A0CdX188Zf23eA1"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusYfm5T2soAViKPACc1bQOZc"><span style="font-size: 16px;">Beginners may want to start with small positions while learning how the indicator behaves in live market conditions. Over time, you can develop an analysis framework that suits your own trading approach.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusD3sUrI1IiD8F1dE8bNjXQc"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" class="ace-line ace-line old-record-id-doxus77GAgsqBzYpNfUG0E2vRCe"><span style="font-size: 16px;">*BTN-<strong>Futures Trading</strong>&BTNURL=<u><a data-lark-is-custom="true" href="https://www.mexc.com/futures/BTC_USDT">https://www.mexc.com/futures/BTC_USDT</a></u>*</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusLmozfgDSzIYXAuYjRqK2YL"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"93233b27-53fc-4204-80c6-542c83d4af0d","height":549,"width":1174,"currHeight":549,"currWidth":1174,"natrualHeight":549,"natrualWidth":1174,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FGTwhbyl23oDD4tx15tburG5dszf%2F%3Fpreview_type%3D16","file_token":"GTwhbyl23oDD4tx15tburG5dszf","image_type":"image/jpeg","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlgbW6No0NwNvtbPpDNjcctId"><img src="https://l7jipx1bfq.larksuite.com/space/api/box/stream/download/asynccode/?code=YjMzMTcxYzUxOTk0NGYxYTZhY2E3YTFmM2NmMTlkZWRfSjNjeHlRejFDdzI4RFl4aGpRNlNXZjZTcWYzdWRKWjZfVG9rZW46R1R3aGJ5bDIzb0RENHR4MTV0YnVyRzVkc3pmXzE3ODgyNjk5MzA6MTc4ODI3MzUzMF9WNA&add_watermark=true&scene_type=CCM" data-single-block="true" data-snapshot="eyJ0eXBlIjoiaW1hZ2UiLCJwYXJlbnRfaWQiOiJWdUtMZDMyQ2RvdDJsSXhHMkE0dXhlOHhzM08iLCJjb21tZW50cyI6W10sInJldmlzaW9ucyI6W10sImxvY2tlZCI6ZmFsc2UsImhpZGRlbiI6ZmFsc2UsImF1dGhvciI6Ijc2MDMyMTcwNjc1MzMxNDM0NzYiLCJhbGlnbiI6IiIsImltYWdlIjp7InRva2VuIjoiR1R3aGJ5bDIzb0RENHR4MTV0YnVyRzVkc3pmIiwibWltZVR5cGUiOiJpbWFnZS9qcGVnIiwic2l6ZSI6MSwic2NhbGUiOjEsIndpZHRoIjoxMTc0LCJoZWlnaHQiOjU0OSwibmFtZSI6IkFkZC1TdG9jaFJTSS1vbi1NRVhDLnBuZyIsImNyb3AiOlswLDAsMCwwXSwicm90YXRpb24iOjAsImNhcHRpb24iOnsidGV4dCI6eyJhcG9vbCI6eyJuZXh0TnVtIjowLCJudW1Ub0F0dHJpYiI6e319LCJpbml0aWFsQXR0cmlidXRlZFRleHRzIjp7ImF0dHJpYnMiOnsiMCI6InwxKzE2In0sInRleHQiOnsiMCI6IkhvdyB0byBhZGQgYW5kIGNvbmZpZ3VyZSBTdG9jaFJTSSBvbiBNRVhDXG4ifX19fX0sImFyZWFfY29tbWVudHMiOm51bGx9" data-suite="eyJmaWxlVG9rZW4iOiJHVHdoYnlsMjNvREQ0dHgxNXRidXJHNWRzemYiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGdiVzZObzBOd052dGJQcEROamNjdElkIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9HVHdoYnlsMjNvREQ0dHgxNXRidXJHNWRzemYvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/GTwhbyl23oDD4tx15tburG5dszf/?mount_node_token=doxlgbW6No0NwNvtbPpDNjcctId&mount_point=docx_image" data-width="1174" data-height="549" data-lark-image-uri="drivetoken://GTwhbyl23oDD4tx15tburG5dszf" data-lark-image-width="1174" data-lark-image-height="549" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxussfZrtNTwC5m6pWZrJmfr3e"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusutGdHZWexqVPKyveHgC3zb"><strong>5. StochRSI vs. RSI: What is the difference?</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusTMhlNJCt42FhGwmXPTZg1b"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusZktkvU0innnTdOKKYfKEMe"><span style="font-size: 16px;">The <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-relative-strength-index-rsi-in-trading-425570029981283328">Relative Strength Index (RSI)</a> is calculated directly from price data. It is smoother and is commonly used to assess overall trend strength. StochRSI is calculated from RSI values, which makes it more sensitive and produces more frequent signals. This sensitivity can help traders identify short-term reversals, but it can also result in more false signals.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusQfarnbIJfSz7TQGcq3dqpd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxustIxWBRsVBBs8FEUHvSaIOe"><span style="font-size: 16px;">The two indicators can be used together: RSI can help confirm the broader market direction, while StochRSI can help identify more precise short-term entry opportunities.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusbAXwrRjeUYs7PxTZ5qPfTb"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxus00daIsJpeSxfLefER4hqBh"><strong>6. Common StochRSI mistakes and limitations</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusz2fxgbNmzO59KeQewO85If"><span style="font-size: 16px;"><br></span></div><div><span style="font-size: 16px;"><span style="font-size: 16px;">1）Do not use Sto</span>chRSI in isolation. Confirm its signals with trendlines, <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-moving-average-of-volume-in-trading-421863713722995712" style="">volume</a>, or moving averages.</span></div><div><span style="font-size: 16px;">2）Avoid trying to pick a bottom or top against a strong trend.</span></div><div><span style="font-size: 16px;">3）Frequent signals can lead to overtrading, so focus on higher-quality setups.</span></div><div><span style="font-size: 16px;">4）StochRSI reflect<span style="font-size: 16px;">s momentum changes that have already occurred. It cannot predict the future, and every signal can fail.</span></span></div><p><br></p><div style="text-align:left" class="ace-line ace-line old-record-id-doxuszXw4EwiQAnbJ4taGSYymGe"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusjqHj3QvgC2NpBITzReqK4g"><strong>7. StochRSI FAQs</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxus2DfAVLWeHDY1IvhGt7wubd"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxus3afFhpiVIqdqiWCR4i2bLb"><span style="font-size: 16px;">7.1 How do you use the StochRSI indicator?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusIRhXHIbQXohM3kyKMGLKce"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus9pCobTYWncRLFquUu9Bphd"><span style="font-size: 16px;">After adding StochRSI to a chart, focus on the 80 and 20 levels. In the oversold zone, a fast-line crossover above the slow line may serve as a buy reference. In the overbought zone, a fast-line crossover below the slow line may serve as a sell reference. Always consider the broader trend direction before acting.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusoMgh9RmNrcStvGRTk8r7be"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxus0qrX0QkN4ucL1Yf2mgBwZb"><span style="font-size: 16px;">7.2 What are the best StochRSI settings for a 5-minute chart?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusiZi9uLxsH43rdtTczdP0kN"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus2C82WtkQuJnbx2Jokq61Ve"><span style="font-size: 16px;">The standard 14, 3, 3 settings with overbought and oversold thresholds of 80 and 20 are a practical starting point. Prioritize highly liquid trading pairs to reduce noise.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusBSK3RgGe9NBYpMfdMngmih"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusCq0yJyjxvkYzrTm0ulfqZf"><span style="font-size: 16px;">7.3 Which StochRSI settings work for a 15-minute chart?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxuskcgjzzCXJ0Nv1XvXYAxGJb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusYMG33u7bzosQA6nCtWw9Sb"><span style="font-size: 16px;">You can also begin with the default 14, 3, 3 settings. If signals appear too frequently, consider increasing the period to filter out some market noise.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusT3wxRrNr5wjXtXzzpdo2ag"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusJtfDzIyC1Me5fyenJmwm3d"><span style="font-size: 16px;">7.4 What is a StochRSI buy signal?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusXULP2JFZWGoie8ubhObJRd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusSqPtsX3U2BMOrwgC1Zr09g"><span style="font-size: 16px;">A common buy signal occurs when StochRSI is below 20 and the fast line crosses above the slow line, especially when the signal aligns with an uptrend on a higher timeframe.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusyVXstzCueNC2Jc6oR9Xztf"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxuskTlbgyoUrqsLQzNqruOH9d"><span style="font-size: 16px;">7.5 Can RSI and StochRSI be used together?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusR0PmNlpYYWZXG2yPfX0jkO"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusGlbwnVVpvAJb2U6ZR7vQEo"><span style="font-size: 16px;">Yes. RSI can help confirm trend strength and the broader market direction, while StochRSI can help identify more precise short-term entry opportunities. Used together, they can provide stronger signal confirmation.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuscSErsnJyydsN94IYhoPZ77"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusA7uMBLi6n977m6cOMPslPg"><span style="font-size: 16px;">7.6 How should StochRSI be set up for intraday trading?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxuswLIwXPMi7dB5bZ78AUvicg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusYWoON5G3g1ggUi7VWyRPBd"><span style="font-size: 16px;">For intraday trading, you can use the 14, 3, 3 settings and add a 50-period moving average as a trend filter. Consider only extreme-zone crossovers that align with the prevailing trend.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusIs1mQYhGnV3R6R3MfxBtZf"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusfSZMSxfMAYMT1z97NycY0g"><span style="font-size: 16px;">7.7 What does it mean when StochRSI stays above 80 for a long time?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusbrGbwcnSMr3v7RXN85JQQc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusUrdj584PtpfAt28fVC6Pqh"><span style="font-size: 16px;">This often indicates a strong uptrend rather than an imminent reversal. Do not short the market solely because StochRSI is elevated. Wait for the fast line to cross below the slow line and look for a confirmed breakdown in price structure.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusWbUnMqjLyezDSUPmmpCoUb"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusevzY8SlCRFNyslDZyX1jUc"><span style="font-size: 16px;">Recommended reading:</span></h3><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxus31CDQ78Jhdvj0LyqDTcs1d" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-momentum-indicator-mtm-in-trading-451905738648294400" style="font-size: 16px;">How to Use the Momentum Indicator (MTM) in Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusfPA2XoP6PT73Ss4CRwe7oR" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-displaced-moving-average-dma-in-trading-447820795253059584" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Displaced Moving Average (DMA) in Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusOmcMywq4EVr2gr9NZcBLCd" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-psychological-line-psy-indicator-in-trading-443492945687418880" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Psychological Line (PSY) Indicator in Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxus5ckufYve0AdDOHNf7XFjlg" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-volume-ratio-vr-indicator-in-trading-443362198292994048" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Volume Ratio (VR) Indicator in Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxus95O6T3Lpp6aXbHulIGLmVf" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-commodity-channel-index-cci-in-trading-436075700375966720" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Commodity Channel Index (CCI) in Trading</a></div></li></ul><div style="text-align:left" class="ace-line ace-line old-record-id-doxusfr7lhVi2LXHNLQwLYPaVwg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus624Z8GI0ADqGmS0NhtAhlh"><span style="font-size: 16px;"><strong>Risk disclaimer:</strong> Technical indicators are calculated from historical data and are provided for reference only. They cannot guarantee future market performance. Digital asset markets are highly volatile and involve risk. Make decisions carefully based on your own risk tolerance, and do not trade solely by following others.</span></div></div>
How to Use the Momentum Indicator (MTM) in Trading: A Complete Beginner's Guide
<div data-page-id="YV7ed3rmJopsRfxRw6du5PXLsvb" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-3 ace-line old-record-id-QM4ldMAH6ozF5KxVmYsuFdIms4c"><strong>Key Takeaways:</strong></h2><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-Y3iQdtsbzodE4mxYEoeu3jvjsbd" data-list="bullet"><div><span style="font-size: 16px;">The Momentum Indicator measures the speed and strength of price movements rather than the price level itself.</span></div></li><li class="ace-line ace-line old-record-id-CO9cdF4IXooqfUx54q0ugotNshd" data-list="bullet"><div><span style="font-size: 16px;">Zero line crossovers, divergence signals, and overbought and oversold conditions are the three primary ways to interpret momentum.</span></div></li><li class="ace-line ace-line old-record-id-Ti7MdqZ4IoyU50xitbOuFeNdsob" data-list="bullet"><div><span style="font-size: 16px;">Common momentum indicators include the Relative Strength Index, Moving Average Convergence Divergence, Rate of Change, and Stochastic Oscillator.</span></div></li><li class="ace-line ace-line old-record-id-HwYOdqyxxoQfEMxB0fMuq5NdsWb" data-list="bullet"><div><span style="font-size: 16px;">Users can easily add the Momentum Indicator to the candlestick chart on MEXC and customize its parameters to support their trading decisions.</span></div></li></ul><div class="ace-line ace-line old-record-id-WiMSdyHxloB0rtxg7qBualQusmb"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-Rd35dotIooP0jKxADrVu7V83sWf"><strong>1. What Is the Momentum Indicator?</strong></h2><div class="ace-line ace-line old-record-id-OTgSdQSYGocMpCxJIc7uyASoscf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-DauKdn7iDoyJxBxhpGcuE80Fs2e"><span style="font-size: 16px;">The Momentum Indicator, or MTM, is one of the most widely used tools in technical analysis. It measures how quickly an asset's price changes over a specific period.</span></div><div class="ace-line ace-line old-record-id-AApkdqYpGoTtwlxsDlBuZUsus7b"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-TrB7dM3ivonAhBx9pXMuinphsBv"><span style="font-size: 16px;">The principle behind momentum is similar to inertia in physics. Once a price trend is in motion, it often continues in the same direction until a significant market force causes it to slow down or reverse.</span></div><div class="ace-line ace-line old-record-id-LdFXdNUr7okcEixt34DuSDo7sWe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Al8ldEqjHorMkJx0Sbeu1jsSsTf"><span style="font-size: 16px;">Unlike analysis methods that focus primarily on price levels, the Momentum Indicator shows whether a price movement is accelerating or losing speed. Strong momentum may support the continuation of a trend, while weakening momentum may indicate that a pullback or reversal is approaching.</span></div><div class="ace-line ace-line old-record-id-WNYIdpgbnoYucExq8FUuRUz5sYg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-AMBrdLZhxo0y9HxyyDkubi2HsAg"><span style="font-size: 16px;">The indicator can therefore help traders assess whether a trend remains strong enough to follow and identify when it may be approaching its final stage.</span></div><div class="ace-line ace-line old-record-id-YNXydumcioseDMxtoHpus7JdsZb"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{"items":[{"uuid":"5f9f1609-1783-4e05-9bd4-6738fef16eed","height":1472,"width":2938,"currHeight":1472,"currWidth":2938,"natrualHeight":1472,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FWE57bW05No2ub5xuxCzu9CaUsZf%2F%3Fpreview_type%3D16","file_token":"WE57bW05No2ub5xuxCzu9CaUsZf","image_type":"image/png","size":302549,"comments":[]}]}" class="image-uploaded gallery old-record-id-YDfDdVhmGoQAZUxC9GOufVZ0sOg"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F202609012131529551O68FpeT1aXMvN.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJXRTU3YlcwNU5vMnViNXh1eEN6dTlDYVVzWmYiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiWURmRGRWaG1Hb1FBWlV4QzlHT3VmVlowc09nIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9XRTU3YlcwNU5vMnViNXh1eEN6dTlDYVVzWmYvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/WE57bW05No2ub5xuxCzu9CaUsZf/?mount_node_token=YDfDdVhmGoQAZUxC9GOufVZ0sOg&mount_point=docx_image" data-width="2938" data-height="1472" data-lark-image-uri="drivetoken://WE57bW05No2ub5xuxCzu9CaUsZf" data-lark-image-width="2938" data-lark-image-height="1472" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-HcZad0lzPorjxkxkNTpuU4iuseh"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-DgqTdDH5Rosv2DxEBdHuzBdhsaf"><strong>2. How to Use the Momentum Indicator: Three Core Methods</strong></h2><div class="ace-line ace-line old-record-id-LEa5dBYvlo2sDYxbUMtuORZysfd"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-NcLBdEHrSolHXGxWoatuwX1Osio"><span style="font-size: 16px;">2.1 Zero Line Crossover Signals</span></h3><div class="ace-line ace-line old-record-id-SFi5dMT34o7ZAax5Fllu5CvZs6e"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Rc8udJ7AFoGyCBxVSBxu0K0qslf"><span style="font-size: 16px;">When the momentum line crosses above the zero line, it indicates that upward momentum is increasing. In an established uptrend, traders may use this as a bullish reference signal.</span></div><div class="ace-line ace-line old-record-id-DKu0dDtd2ouWBmxXBZKuf3b5sLb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-NcGGdCm80oCT7lxe4iqu6MPNsud"><span style="font-size: 16px;">When the momentum line crosses below the zero line, it suggests that downward momentum is strengthening. In an established downtrend, traders may interpret this as a bearish reference signal.</span></div><div class="ace-line ace-line old-record-id-PVf7dZP3ooxKMSxMysmuar91sSd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-W433dKPd5oMRYIx6zHQuXC52sKb"><span style="font-size: 16px;">Crossover signals that align with the broader market trend are generally more reliable than signals that move against it.</span></div><div class="ace-line ace-line old-record-id-EsQLdRjd6ohsI7xeGBUuf2Wus4g"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-WsrWdlaxhoFldWxnosbukn9DsFw"><span style="font-size: 16px;">2.2 Divergence Signals</span></h3><div class="ace-line ace-line old-record-id-IvFVdPGUHod6qGxxWBMu9hGCshh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Hhdsdo8FtoLUITx3zw4uJja4sHg"><span style="font-size: 16px;">Divergence is one of the most valuable signals provided by the Momentum Indicator.</span></div><div class="ace-line ace-line old-record-id-Nv9odRuzxojHZUxsJpyuEgXVsQe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Hx3uddWsRorf5wxJOB2ugG3tsrh"><span style="font-size: 16px;"><strong>Bearish divergence:</strong> The price reaches a new high, but the Momentum Indicator fails to reach a corresponding new high. This suggests that upward momentum is weakening and that the price may pull back.</span></div><div class="ace-line ace-line old-record-id-Cvocde2PnoWLlWxn6rNuJUpAssc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-FF8BdWXqdoca93x2ksXu8wLpsSd"><span style="font-size: 16px;"><strong>Bullish divergence:</strong> The price reaches a new low while the Momentum Indicator begins to rise. This indicates that selling pressure may be weakening and that the price could rebound.</span></div><div class="ace-line ace-line old-record-id-Y7tVd5xgfokT8wx0FDiuuujNsyh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Cu1DdQF9gouWImxpfX9uMI6zs1d"><span style="font-size: 16px;">Divergence does not guarantee that a reversal will occur, but it can provide an early warning that the current trend is losing strength.</span></div><div class="ace-line ace-line old-record-id-NoYWdwRfNoL6UoxRmV4uZz6bsSb"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-TgS4d0uOco5GJRx4xHauUueqsmg"><span style="font-size: 16px;">2.3 Overbought and Oversold Conditions</span></h3><div class="ace-line ace-line old-record-id-Y7KYdRPpToeecPx7GpNuo60XsFd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-TJ1ydsFdxoxtjjxAnWLu5yoKsDg"><span style="font-size: 16px;">The standard Momentum Indicator does not have fixed upper or lower boundaries. Traders must therefore identify potential overbought and oversold levels by reviewing the historical behavior of each asset.</span></div><div class="ace-line ace-line old-record-id-VxiXdFF8eoR7ZwxJoV7uk4S8sWG"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-ETBZd7CqIo3lQHx2EEEuMy8osQh"><span style="font-size: 16px;">Bounded oscillators, such as the <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-relative-strength-index-rsi-in-trading-425570029981283328">Relative Strength Index</a>, provide standardized reference ranges and may be easier for beginners to interpret.</span></div><div class="ace-line ace-line old-record-id-P0n2dWP71oDKWzxnxxvu5QBEsSQ"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-VkhYdMnNFoqJmTx30hauxye1sCg"><strong>3. Momentum Indicator Parameter Settings</strong></h2><div class="ace-line ace-line old-record-id-GyzXdV8LJoVVA7xrPnAuwtvNsDb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-W0eIdbgbHox3yExP1fbujmRMsUg"><span style="font-size: 16px;">The most commonly used default period for the Momentum Indicator is 12.</span></div><div class="ace-line ace-line old-record-id-N6b3dMMOdo8xx1xa3bJuIUmbsHd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-DtTwdZqB0osCgkxewmYuOIl4snf"><span style="font-size: 16px;">A shorter period makes the indicator more responsive to recent price movements, but it may also generate more market noise and false signals. A longer period produces a smoother indicator line but responds more slowly to changes in market conditions.</span></div><div class="ace-line ace-line old-record-id-KOmZdtssIoRQwyxgMshuQZ3hsbf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-TLxXdPX9foXGZJxGn7FuA7vds5e"><span style="font-size: 16px;">Short-term traders may consider using a shorter period to increase sensitivity. Medium-term and long-term traders may prefer a longer period to filter out short-term price fluctuations.</span></div><div class="ace-line ace-line old-record-id-Wheudbr0zowB7Ox0J8NuJI09spz"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Iyb5dlCSco1t9ExnHBZupL9SsKb"><span style="font-size: 16px;">On <a data-lark-is-custom="true" href="https://www.mexc.com/">MEXC</a>, users can adjust the Momentum Indicator parameters according to their trading style and compare signals across multiple timeframes.</span></div><div class="ace-line ace-line old-record-id-R5qOd4J65oyJCRxJdwsuE0Alsjf"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" class="ace-line ace-line old-record-id-FfZvd96tdoZo9gxzaHGulh6WsFc"><span style="font-size: 16px;">*BTN-<strong>Spot Trading</strong>&BTNURL=<u><a data-lark-is-custom="true" href="https://www.mexc.com/exchange/BTC_USDT">https://www.mexc.com/exchange/BTC_USDT</a></u>*</span></div><div class="ace-line ace-line old-record-id-AaNndowXuoBBodxP4jIuXWQLsQf"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{"items":[{"uuid":"ae2d6310-15ca-4943-8d60-e2b5b760c10d","height":1394,"width":2932,"currHeight":1394,"currWidth":2932,"natrualHeight":1394,"natrualWidth":2932,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FLd2TbV6v7oeiRXxLicbuoT7Bsfe%2F%3Fpreview_type%3D16","file_token":"Ld2TbV6v7oeiRXxLicbuoT7Bsfe","image_type":"image/png","size":458954,"comments":[]}]}" class="image-uploaded gallery old-record-id-AnmddoIp3ovw9vxS3AIu3bpusmh"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260901213153141WFTPXc35dBbAcW.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJMZDJUYlY2djdvZWlSWHhMaWNidW9UN0JzZmUiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiQW5tZGRvSXAzb3Z3OXZ4UzNBSXUzYnB1c21oIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9MZDJUYlY2djdvZWlSWHhMaWNidW9UN0JzZmUvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/Ld2TbV6v7oeiRXxLicbuoT7Bsfe/?mount_node_token=AnmddoIp3ovw9vxS3AIu3bpusmh&mount_point=docx_image" data-width="2932" data-height="1394" data-lark-image-uri="drivetoken://Ld2TbV6v7oeiRXxLicbuoT7Bsfe" data-lark-image-width="2932" data-lark-image-height="1394" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-HCvkdETOfoV1FQxoKWdu6x6msSg"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-FAhzdzIGQoyCkSxggBeu07GPsKb"><strong>4. Considerations When Using the Momentum Indicator</strong></h2><div class="ace-line ace-line old-record-id-GPNvd9ySNo8J0TxiHjfuvYAIsnf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-FpwcdhKa6oZ0wFxRv5Yut0BOsXb"><span style="font-size: 16px;"><strong>1）</strong><strong>Avoid relying on a single indicator.</strong> The Momentum Indicator measures the speed of price movements but cannot independently identify the broader trend or important price levels. Traders should combine it with tools such as <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-moving-average-indicators-in-trading-416905955663768576">moving averages</a> and support and resistance levels.</span></div><div class="ace-line ace-line old-record-id-FwHHdcb8Zo3uMrxelw4ue1QXsRd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-ThQpdFVQIoKCQHxkCsQuFsPts1n"><span style="font-size: 16px;"><strong>2）</strong><strong>Consider the market environment.</strong> The Momentum Indicator may produce frequent false signals in sideways or range-bound markets. Momentum signals also tend to be more reliable in rising markets than in declining markets.</span></div><div class="ace-line ace-line old-record-id-GLqCd9BVfomPUlxqoMQu2zLbsEc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-O35WdfTANoWyUsxT6UmuUm7ysPc"><span style="font-size: 16px;"><strong>3）</strong><strong>Apply appropriate risk management.</strong> Technical indicators are analytical tools, and every signal should be supported by appropriate position sizing and stop-loss rules. When trading on MEXC, users can take advantage of the platform's <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/mexc-futures-take-profit-and-stop-loss-faq-350096811661177856">take-profit and stop-loss</a> features to manage risk.</span></div><div class="ace-line ace-line old-record-id-I7C7dVeA6ogpt6xnChOuBbJnsCb"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-QMlodUur5oK9gUxcFPQuEuQRsxc"><strong>5. Common Momentum Indicators</strong></h2><div class="ace-line ace-line old-record-id-T9jydvK0ToH2mqxGUdkunp0tsmg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Zzv0doEAMoHsfKxk0cPuO07tsVb"><span style="font-size: 16px;">Momentum indicators are a broad category of technical analysis tools. In addition to the standard MTM indicator, the following indicators are also widely used:</span></div><div class="ace-line ace-line old-record-id-FF0pdLdMVoUOaCx932muoApnsAe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-A0KqdzOoaog9eVxSxtMuYlQ6sCd"><span style="font-size: 16px;"><strong>Relative Strength Index (RSI):</strong> RSI moves between 0 and 100 and measures the speed and magnitude of price changes. It is commonly used to identify overbought conditions above 70 and oversold conditions below 30.</span></div><div class="ace-line ace-line old-record-id-Gj5XdInk5oqiXcxBxyiujRfxsgc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-GIrUdGB4soxLeLxOPPDuYPmGsac"><span style="font-size: 16px;"><strong><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-macd-indicator-in-trading-426304203100942336">Moving Average Convergence Divergence (MACD)</a></strong>: MACD uses the relationship between moving averages to reflect both trend direction and momentum. Crossovers between the MACD line and the signal line are commonly used as trading reference signals.</span></div><div class="ace-line ace-line old-record-id-GFIgdN75Wo99fMxPO9EuOGqpswd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-BoXYdi7VBofNjex0tDgux5tusQe"><span style="font-size: 16px;"><strong><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-stochastic-oscillator-in-trading-427169948248728576">Stochastic Oscillator (KDJ)</a></strong>: This indicator measures the current closing price’s relative position within a selected price range. Traders commonly use it to assess potential short-term price movements.</span></div><div class="ace-line ace-line old-record-id-R1RRdvQkmoVE1nxUuHMuyGV7soc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-IPqOdd1OUoqALVxbsUruYt4Jsve"><span style="font-size: 16px;"><strong>Rate of Change (ROC):</strong> ROC moves above and below a zero line and measures the percentage change between the current price and the price from a previous period.</span></div><div class="ace-line ace-line old-record-id-ACrWdRxZQoD8MFxNio2uc5dpsvc"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-BA4RdzzjmoVF84xpnctuuUfzsPc"><strong>6. Momentum Indicator FAQ</strong></h2><div class="ace-line ace-line old-record-id-MN6ldoeseosTcwxaM9Yu7utUsDe"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-Xnn2dGt83ob60TxnI2quV5VXsty"><span style="font-size: 16px;">6.1 How should I set the Momentum Indicator parameters?</span></h3><div class="ace-line ace-line old-record-id-WnQedKMHzoOP5wxo5JsuEuAFsGe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-GU27dKdztoBXKyxeYJUufc10sVg"><span style="font-size: 16px;">The default period is usually 12. Short-term traders may use a shorter period for greater sensitivity, while medium-term and long-term traders may use a longer period to reduce market noise.</span></div><div class="ace-line ace-line old-record-id-TPVgdHUo5o3w5NxI1K5uY3wwsEh"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-BPAGd5Y2Eow1pnxhc1qu5lm4sBh"><span style="font-size: 16px;">6.2 Which momentum indicator is the most accurate?</span></h3><div class="ace-line ace-line old-record-id-FXIadUVBZoSvnSxumgYuso3nsWe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-YblcdObp3oijbbxYcWpu84fnsnd"><span style="font-size: 16px;">No momentum indicator is universally the most accurate. MACD is often considered a comprehensive tool for analyzing both trends and momentum, while RSI is particularly useful for identifying overbought and oversold conditions. Performance depends on the market environment and how the indicator is applied.</span></div><div class="ace-line ace-line old-record-id-WX1qdOT1soD02AxlK1uuEfj1sYg"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-WQubdifXJoVpgsxpoVCucKMgsfd"><span style="font-size: 16px;">6.3 What are the most common momentum indicators?</span></h3><div class="ace-line ace-line old-record-id-MpKZd7g0joCABbxyC7cufdvYsZe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-RFmPd4rlMoIfARx2JbYufc0xsyg"><span style="font-size: 16px;">Common momentum indicators include the standard Momentum Indicator, Relative Strength Index, Moving Average Convergence Divergence, Rate of Change, and Stochastic Oscillator.</span></div><div class="ace-line ace-line old-record-id-UFWQdE2Svoo9RFxm8EjuUktusOg"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-ImXTdgxkGorM7lxddmnuQDtQsbb"><span style="font-size: 16px;">6.4 Does momentum trading really work?</span></h3><div class="ace-line ace-line old-record-id-AyD2dmfdTobk4FxvJB0u16PzsTe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Tr8VdM2YzotPn0xJTOgubECZscc"><span style="font-size: 16px;">Momentum strategies have historically performed well in markets with clear trends. However, they may generate unreliable signals in sideways markets. Their effectiveness depends on appropriate signal filtering, market analysis, and risk management.</span></div><div class="ace-line ace-line old-record-id-SfMxdHayEoV7BXxSteauOL5Psx3"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-FoX4dyzi1oAApXxbiK5uReNgsef"><span style="font-size: 16px;">6.5 Is the Momentum Indicator useful?</span></h3><div class="ace-line ace-line old-record-id-LP6ddfpVxo7spmxcCmIulqFDsVd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-MPlNdLck0oGXKoxB7VDuGwPZsqh"><span style="font-size: 16px;">The Momentum Indicator is a practical tool for evaluating trend strength. However, it has limitations, including the absence of fixed boundaries and less reliable signals in range-bound markets. Traders should use it together with other analytical tools.</span></div><div class="ace-line ace-line old-record-id-ATpQdhkw1oIwJAxKbfkujXUzsBc"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-I4Hidd2cwog7QHxIEEOuKa14svb"><span style="font-size: 16px;">6.6 How do I use the Momentum Indicator on MEXC?</span></h3><div class="ace-line ace-line old-record-id-EdNLdKlysofUiixgNUFuiNLssNe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-ASf6dgYdloUHqRxhZjEubWx1sCh"><span style="font-size: 16px;">Open the candlestick chart on the MEXC <a data-lark-is-custom="true" href="https://www.mexc.com/zh-MY/exchange/BTC_USDT">Spot</a> or <a data-lark-is-custom="true" href="https://www.mexc.com/zh-MY/futures/BTC_USDT">Futures</a> trading page. Search for the Momentum Indicator in the indicators menu, add it to the chart, and customize its parameters according to your trading strategy.</span></div><div class="ace-line ace-line old-record-id-Y6lfdbsKwoeQCQxiB8FuXwJzswg"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{"items":[{"uuid":"e38cd613-e1bf-4209-b868-2b4e0b3ff385","height":1404,"width":2934,"currHeight":1404,"currWidth":2934,"natrualHeight":1404,"natrualWidth":2934,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FRP82bZaHuocBuJxK4Jcuh1pYs7e%2F%3Fpreview_type%3D16","file_token":"RP82bZaHuocBuJxK4Jcuh1pYs7e","image_type":"image/png","size":469234,"comments":[]}]}" class="image-uploaded gallery old-record-id-TLjudh9G2o3zVhxXOY3ula7fsGh"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260901213153143FoWBAcmKTjfQdh.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJSUDgyYlphSHVvY0J1SnhLNEpjdWgxcFlzN2UiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiVExqdWRoOUcybzN6Vmh4WE9ZM3VsYTdmc0doIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9SUDgyYlphSHVvY0J1SnhLNEpjdWgxcFlzN2UvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/RP82bZaHuocBuJxK4Jcuh1pYs7e/?mount_node_token=TLjudh9G2o3zVhxXOY3ula7fsGh&mount_point=docx_image" data-width="2934" data-height="1404" data-lark-image-uri="drivetoken://RP82bZaHuocBuJxK4Jcuh1pYs7e" data-lark-image-width="2934" data-lark-image-height="1404" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-XLgYdbuaWoHJdkxSmqWuSw8QsWb"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-ZlpndmItpoTaiRxEl8QuwSp3sZg"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-UXzFdws4vosYgWxEmWMu1MRls8g" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-directional-movement-index-dmi-in-trading-437460810149061632" style="font-size: 16px;">How to Use the Directional Movement Index (DMI) in Trading: A Complete Beginner's Guide</a></div></li><li class="ace-line ace-line old-record-id-IkbgdZs1hoRxECx4N2Luh1KfsWh" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-on-balance-volume-in-trading-451161858902562816" data-lark-is-custom="true" style="font-size: 16px;">How to Use On-Balance Volume in Trading: A Complete Beginner's Guide</a></div></li><li class="ace-line ace-line old-record-id-ZOwfdc1CiorQRux1YcEuM8tSs1c" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-triple-exponential-average-trix-in-trading-451158981274473472" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Triple Exponential Average (TRIX) in Trading: A Complete Beginner's Guide</a></div></li><li class="ace-line ace-line old-record-id-OB5DdK7s3oDaDZxW632ulxUMscf" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-displaced-moving-average-dma-in-trading-447820795253059584" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Displaced Moving Average (DMA) in Trading: A Complete Beginner's Guide</a></div></li><li class="ace-line ace-line old-record-id-JjpiddVEio7A1excqwQuMJMvsje" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-commodity-channel-index-cci-in-trading-436075700375966720" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Commodity Channel Index (CCI) in Trading: A Complete Beginner's Guide</a></div></li></ul><div class="ace-line ace-line old-record-id-Hie0ddwxto29s8x6TZ5uX8q4s5d"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-GStCdQnbDogbpoxLI48uN5q8suf"><span style="font-size: 16px;"><strong>Risk Disclaimer: </strong>Technical indicators are calculated using historical data and are provided for reference only. They cannot guarantee future market performance. Digital asset markets are highly volatile, and trading involves risk. Make decisions carefully based on your own risk tolerance and avoid following market trends blindly.</span></div><div class="ace-line ace-line old-record-id-Q0Ecd6mo8oHfECxMQn9uPFsUsHd"><span style="font-size: 16px;"><br></span></div></div>
How to Use On-Balance Volume in Trading: A Complete Beginner's Guide
<div data-page-id="YL2td6USIo41RbxApBRuuKOZsib" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-PgxkdhEkAoU4itxosQcucA6BsCh"><strong>Key Takeaways:</strong></h2><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-PslKdNGNioaBgNxLTPqudg8Xs7g" data-list="bullet"><div><span style="font-size: 16px;">The On-Balance Volume indicator is a momentum-based technical indicator introduced by Joe Granville in 1963. It uses cumulative changes in trading volume to help anticipate price movements.</span></div></li><li class="ace-line ace-line old-record-id-ZWskdTS5No1UjAxPrRyul8rpsv9" data-list="bullet"><div><span style="font-size: 16px;">OBV is based on the principle that volume precedes price, allowing traders to identify potential trend changes before they appear in price action.</span></div></li><li class="ace-line ace-line old-record-id-UTxUd7sHFoU5y4xgatOueWAisae" data-list="bullet"><div><span style="font-size: 16px;">OBV can be interpreted in three main ways: trend confirmation, divergence signals, and breakout validation.</span></div></li><li class="ace-line ace-line old-record-id-JDJCdVrZIojX1sxh7NwudyU0std" data-list="bullet"><div><span style="font-size: 16px;">Three practical OBV strategies include divergence reversals, moving average confirmation, and accumulation detection during consolidation.</span></div></li><li class="ace-line ace-line old-record-id-PQpHdA0mxofQzJx6HPDucr3VsTh" data-list="bullet"><div><span style="font-size: 16px;">Users can add OBV to the candlestick chart on MEXC and combine it with other tools for more comprehensive analysis.</span></div></li></ul><div class="ace-line ace-line old-record-id-QQ71dOQ17o0GuDxlDQiuSD6ks8f"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-Tr8td7VuVoCcf1xtixUu0kRosbg"><strong>1. What Is On-Balance Volume?</strong></h2><div class="ace-line ace-line old-record-id-MLxtdk6CjoZCMBxhAPkuEJszsab"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-HLSGdkiJIow8zUxb9bWuXDxxs5d"><span style="font-size: 16px;">On-Balance Volume, or OBV, is an indicator used to measure buying and selling pressure in the market. It was introduced by financial analyst Joe Granville in his 1963 book, <em>Granville's New Key to Stock Market Profits</em>, and was one of the earliest technical tools designed to track positive and negative volume flow.</span></div><div class="ace-line ace-line old-record-id-HgQVd4fHnouFppxr5ZPuWNCCsUh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-W0h7dMfPAoyfcSxntabupUPSsy7"><span style="font-size: 16px;">The central principle behind OBV is that volume precedes price. Granville believed that trading volume is a major force driving financial markets and that changes in volume often appear before corresponding changes in price when large investors begin entering or exiting the market. By observing the direction of OBV, traders may identify potential trend changes earlier.</span></div><div class="ace-line ace-line old-record-id-MV9MdOJZ6oSw46xcIdXuDx9xsUf"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{"items":[{"uuid":"1f178d00-f065-4476-9f20-f5d040ac5fdc","height":1476,"width":2938,"currHeight":1476,"currWidth":2938,"natrualHeight":1476,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FRaOQb3x4qoa2F5xtbebuu35fsid%2F%3Fpreview_type%3D16","file_token":"RaOQb3x4qoa2F5xtbebuu35fsid","image_type":"image/png","size":256873,"comments":[]}]}" class="image-uploaded gallery old-record-id-VDGhdlt3yo5vUYxUsjQun4nesag"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260831212836979fI7Jd0jwTRLvsR.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJSYU9RYjN4NHFvYTJGNXh0YmVidXUzNWZzaWQiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiVkRHaGRsdDN5bzV2VVl4VXNqUXVuNG5lc2FnIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9SYU9RYjN4NHFvYTJGNXh0YmVidXUzNWZzaWQvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/RaOQb3x4qoa2F5xtbebuu35fsid/?mount_node_token=VDGhdlt3yo5vUYxUsjQun4nesag&mount_point=docx_image" data-width="2938" data-height="1476" data-lark-image-uri="drivetoken://RaOQb3x4qoa2F5xtbebuu35fsid" data-lark-image-width="2938" data-lark-image-height="1476" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-NFFQdeakcoU0o3xSSCku0HjssHe"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-RiQ2dk3dQoKBeqxrCR7u7Yw0sib"><strong>2. How to Interpret On-Balance Volume</strong></h2><div class="ace-line ace-line old-record-id-DbaDdu1Lmo2kcXxh4qmuhH5TsPg"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-R2ObdiJD0oN46WxbXn8udysEsBf"><span style="font-size: 16px;">2.1 Trend Confirmation</span></h3><div class="ace-line ace-line old-record-id-Z6wkdxID4oZuelxyngkuKzfcsLh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-F7tzdvvSeoXD27xiAF2uGLSOsHe"><span style="font-size: 16px;">The most basic use of OBV is to confirm the strength of an existing trend. When the price forms higher highs and OBV also rises, the uptrend is supported by genuine buying pressure and may be more likely to continue. Conversely, when both the price and OBV move lower, OBV confirms the strength of the downtrend.</span></div><div class="ace-line ace-line old-record-id-CWvHdQYy5oEd1lxvcR0uZKHJsBh"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-J6ucdfVxMoc9fDxLIVSuHlEUsIh"><span style="font-size: 16px;">2.2 Divergence Signals</span></h3><div class="ace-line ace-line old-record-id-EWYud39mAo8L3Yxtt1Curyaus9f"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-KSgmdIyfbo5nr9xEC29uCYBxsHg"><span style="font-size: 16px;">Divergence is one of the most important OBV signals. It occurs when the price and the indicator move in different directions:</span></div><div class="ace-line ace-line old-record-id-Isp0dST9nobjBlxCzETuJVcwsUg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-PgiIdqNqJotvrJxqvAHuHFXZsed"><span style="font-size: 16px;"><strong>Bullish divergence:</strong> The price forms a lower low while OBV forms a higher low. This suggests that selling pressure is weakening even though the price continues to decline, potentially signaling an upward reversal.</span></div><div class="ace-line ace-line old-record-id-Q3eudxtu5oos6nxpKxiunTSasok"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-TzdndOExnomGRUxKKasu4AGpsmh"><span style="font-size: 16px;"><strong>Bearish divergence:</strong> The price forms a higher high while OBV forms a lower high. This indicates that buying pressure may be weakening and that the uptrend could lose momentum or reverse.</span></div><div class="ace-line ace-line old-record-id-KUE2dvj2JojSTsxBGFNuzYeQsle"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-TRKvdoWFjoIoiUxvJNEuYplGs9c"><span style="font-size: 16px;">2.3 Breakout Validation</span></h3><div class="ace-line ace-line old-record-id-KcIzdDBREolu5CxRF8curUlcsjh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-LpFPdtv2Lom2RjxQbfqu6NYxsIe"><span style="font-size: 16px;">When the price breaks through a key support or resistance level, traders can use OBV to assess the strength of the breakout. If OBV simultaneously breaks above a previous high or below a previous low, the price breakout may be more credible. If OBV fails to confirm the move, the breakout may lack conviction, and traders should proceed cautiously.</span></div><div class="ace-line ace-line old-record-id-Ook6d9Qzao5XxixINiIuA3sHsJb"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-V1jadzhGqoso4Wx7e0ZumWevsLf"><strong>3. On-Balance Volume Trading Strategies</strong></h2><div class="ace-line ace-line old-record-id-Hg9md6tiDofiL3x1gMYuNnRyssd"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-L7emd9Quho9TMvxqgGtu7nV2seg"><span style="font-size: 16px;">3.1 Classic Divergence Reversal Strategy</span></h3><div class="ace-line ace-line old-record-id-UY4GdJAS1oLlHfx6rdEudHSrsKg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-YWvKdMex4o2c33xgYF1usECFsUc"><span style="font-size: 16px;">Mark significant price highs and lows together with the corresponding swing points on OBV. When a clear divergence appears, wait for confirmation from the price structure before entering a trade. Confirmation may include a break above a recent swing high or below a recent swing low. A stop-loss order can be placed beyond the nearest local high or low.</span></div><div class="ace-line ace-line old-record-id-Gj53dH2YioQproxl8Mjuw4plsub"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-PgU1d68q7oFg2Kx3ZXDu0lOlssh"><span style="font-size: 16px;">3.2 Combining OBV With a Moving Average</span></h3><div class="ace-line ace-line old-record-id-SWkEd4MyaoKg3GxVoVruwbc6spb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-FRKLdcXVdoW8pTxh0kxuv4U1shb"><span style="font-size: 16px;">Combining OBV with a <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-moving-average-indicators-in-trading-416905955663768576">moving average</a> can help filter out false signals. When OBV is above its moving average and both are trending upward, traders may prioritize long setups. When OBV is below its moving average and both are trending downward, traders may prioritize short setups. This combination can improve signal quality.</span></div><div class="ace-line ace-line old-record-id-ZgzKdjdLuoEUDCxponHuxfWFsDh"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-RJiFdW61WoYotKx8WFourubdsec"><span style="font-size: 16px;">3.3 Identifying Accumulation During Consolidation</span></h3><div class="ace-line ace-line old-record-id-NtqVdF3d2oxrBaxwxi1usqqHsde"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-NaZUd3ePyo69YoxRlkGu0KxYs6b"><span style="font-size: 16px;">When the price remains within a narrow consolidation range while OBV continues to rise, it may indicate that large investors are accumulating positions. Traders may consider entering after the price makes a confirmed breakout above the upper boundary of the range.</span></div><div class="ace-line ace-line old-record-id-BZtPd2WojoyLPExPJTsuy11VsQG"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-OgMGd1PaEoXHe8xI4gJuqFRQseg"><span style="font-size: 16px;">Before applying these strategies with real funds on <a data-lark-is-custom="true" href="https://www.mexc.com/">MEXC</a>, beginners should test them with small positions and use multiple <a data-lark-is-custom="true" href="https://www.mexc.com/support/futures-trading/technical-indicators">technical indicators</a> for confirmation.</span></div><div class="ace-line ace-line old-record-id-Nh5adqG4NoSLF4xWh1buVSUYsgg"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-YpuFdXFamolabYxjHr6ukCwDskb"><strong>4. Advantages and Limitations of On-Balance Volume</strong></h2><div class="ace-line ace-line old-record-id-ROvzdj6LQoJbHPxR8fuua4ews7e"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-UNKOdGda7oLpLWxWzEuusagAspH"><span style="font-size: 16px;"><strong>Advantages:</strong> OBV is simple to calculate and interpret. It provides several types of signals, including trend confirmation, divergence, and breakout validation. It also has relatively little lag, may occasionally act as a leading indicator, and does not repaint historical signals.</span></div><div class="ace-line ace-line old-record-id-OHXhdNxUtoUl1FxPwXjuU1jhsKb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-SedFduSXvoMAjkx8aWku1FYisQh"><span style="font-size: 16px;"><strong>Limitations:</strong> Sudden volume spikes caused by breaking news may distort the indicator and generate false signals. Price noise on shorter timeframes may reduce signal reliability. OBV does not account for the magnitude of price changes and may be less effective in sideways or range-bound markets.</span></div><div class="ace-line ace-line old-record-id-Rtlvd72WsoRxN2xzRSHuQqc9sjd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-OrtYdHrjIoXovUxpQwCu9BMdsse"><span style="font-size: 16px;">Professional traders commonly recommend using OBV on timeframes of 15 minutes or longer and combining it with other tools, such as the <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-relative-strength-index-rsi-in-trading-425570029981283328">Relative Strength Index</a> and moving averages. Traders should not rely on OBV alone when making trading decisions.</span></div><div class="ace-line ace-line old-record-id-FQSFd2uUwo1u1ZxJ7ibubrT5sKd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-Efy4debuaojtUYx69Ctu7GoLsUe"><strong>5. How to Use On-Balance Volume on MEXC</strong></h2><div class="ace-line ace-line old-record-id-TQCDdd2zvoS2uvxliDRuUt4usKd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-YWkyd3kgSoeahixXspFuWbt3sKe"><span style="font-size: 16px;">1）Add OBV to the candlestick chart on <a data-lark-is-custom="true" href="https://www.mexc.com/">MEXC</a> and begin with major digital assets that have relatively high liquidity.</span></div><div class="ace-line ace-line old-record-id-IrDZddrj9oUAJOxaI5Nu24YIsIc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-IycedHwuDoXGOYxjob9ujgs3sTh"><span style="font-size: 16px;">2）Start with longer timeframes, such as the four-hour or daily chart, and learn to identify trend confirmation and divergence signals.</span></div><div class="ace-line ace-line old-record-id-Xy1gdjl7xo5wp7xeEAZu0rkZsqd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-NttsdylCRoFTF0xszIsulH2ksCf"><span style="font-size: 16px;">3）Establish clear entry, stop-loss, and take-profit rules instead of trading based on intuition.</span></div><div class="ace-line ace-line old-record-id-Eys5dimAxoTI0CxbuKxuFTe1sAh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-AipmdpHHMoJ1Frx29KGuVwJcsvb"><span style="font-size: 16px;">4）Apply appropriate risk management and confirm every OBV signal with other technical tools.</span></div><div class="ace-line ace-line old-record-id-ZNHddCCL5oh4Gnxd3ujuUWlDsRf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-B8qFd9lfconGNgxKssxuYBJssGg"><span style="font-size: 16px;">Go to MEXC Website → <strong>Spot</strong>/<strong><a data-lark-is-custom="true" href="https://www.mexc.com/futures/BTC_USDT">Futures</a></strong> → <strong>Indicators</strong> → <strong>OBV</strong></span></div><div class="ace-line ace-line old-record-id-ITqcdUPSAoXcNmxmKDouteRcshE"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{"items":[{"uuid":"5b8d3041-b32c-4644-956e-905c26bf26b4","height":1398,"width":2934,"currHeight":1398,"currWidth":2934,"natrualHeight":1398,"natrualWidth":2934,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FMBcxb4T3joLn6Bxp7IRuy5s8spb%2F%3Fpreview_type%3D16","file_token":"MBcxb4T3joLn6Bxp7IRuy5s8spb","image_type":"image/png","size":459855,"comments":[]}]}" class="image-uploaded gallery old-record-id-NOgqdze7boubajxug7zughdLs7n"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260831212836992GxqXxjUYR6pNHv.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJNQmN4YjRUM2pvTG42QnhwN0lSdXk1czhzcGIiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiTk9ncWR6ZTdib3ViYWp4dWc3enVnaGRMczduIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9NQmN4YjRUM2pvTG42QnhwN0lSdXk1czhzcGIvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/MBcxb4T3joLn6Bxp7IRuy5s8spb/?mount_node_token=NOgqdze7boubajxug7zughdLs7n&mount_point=docx_image" data-width="2934" data-height="1398" data-lark-image-uri="drivetoken://MBcxb4T3joLn6Bxp7IRuy5s8spb" data-lark-image-width="2934" data-lark-image-height="1398" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-X0kOdKJ4noOPv9xhUU4uYBuUsXd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-SxuUdCRR9ox7kJxQXgvupeuusOi"><strong>6. On-Balance Volume FAQ</strong></h2><div class="ace-line ace-line old-record-id-AGJQdYfGxop0XKxHr0Uu3mtKsJf"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-DZkzdTJB3oVZzexy3vlu3xpysde"><strong style="font-size: 16px;">6.1 What is the on-balance volume indicator?</strong></h3><div class="ace-line ace-line old-record-id-ASh9dPQLToD8Vsx6kqnuQzNpsjb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-MQ3hduR8gofYcQxVQEFuMch8s2d"><span style="font-size: 16px;">OBV measures buying and selling pressure by adding trading volume when the price rises and subtracting it when the price falls. Traders use its direction to help anticipate potential price movements.</span></div><div class="ace-line ace-line old-record-id-E1ERdAwcso3mNJxWfGYuQ6VwsHb"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-MSAPdkF6po2Dhnx5hFauNJLpsrh"><strong style="font-size: 16px;">6.2 How do you use OBV in trading?</strong></h3><div class="ace-line ace-line old-record-id-JKGad8aocor6ALxwR4yuos4nsng"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-R6DmdHaFhoxoXwxKnd3uN0Hoscd"><span style="font-size: 16px;">OBV has three primary uses: comparing its direction with the price to confirm a trend, identifying divergence between the price and OBV to anticipate possible reversals, and using OBV to validate breakouts of key price levels.</span></div><div class="ace-line ace-line old-record-id-KIG8dZj92ouTPKx7YjAuLPRjsxe"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-OuyDd15YEo8qYVxyvNYuMPDDsCg"><strong style="font-size: 16px;">6.3 What is the difference between OBV and trading volume?</strong></h3><div class="ace-line ace-line old-record-id-OtdVdbFwuovlcuxfW3pur6dosoc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-VwGldSyQYo5WoOxGnUAu2144srf"><span style="font-size: 16px;">Standard <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-moving-average-of-volume-in-trading-421863713722995712">trading volume</a> shows the level of trading activity during each period. OBV accumulates volume based on whether the price rises or falls, helping traders assess the broader direction of buying and selling pressure.</span></div><div class="ace-line ace-line old-record-id-KqI3dzNL7oPzZdxjZ28uEv8IsJe"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-T5A1dgmeCoJo2CxAGe6unOeksxg"><strong style="font-size: 16px;">6.4 Is OBV suitable for day trading?</strong></h3><div class="ace-line ace-line old-record-id-N63ndRkONoFR0vx8BujuOa4zscg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Y3fad4gbeo2mQ3xQX8yuvOZLsOf"><span style="font-size: 16px;">OBV can be used for day trading. However, shorter timeframes contain more market noise and may produce more false signals. Day traders may consider using timeframes of 15 minutes or longer and combining OBV with other indicators to filter signals.</span></div><div class="ace-line ace-line old-record-id-EWEEdhIbIoPBQsxE7vsuUX42swA"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-Xw39d2bbKovD50xnqICuOonmsvc"><strong style="font-size: 16px;">6.5 What is OBV divergence?</strong></h3><div class="ace-line ace-line old-record-id-Jk10dhvdyoQuVcx9BUUu468Ns6c"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-JFYYdz4Y2oT6ygx3DD6unh2vsig"><span style="font-size: 16px;">OBV divergence occurs when the price and the indicator move in different directions. A lower low in price accompanied by a higher low in OBV is bullish divergence and may signal a rebound. A higher high in price accompanied by a lower high in OBV is bearish divergence and may signal a pullback.</span></div><div class="ace-line ace-line old-record-id-OgTUdBSGhoKZsVxTjHauxLuOsfh"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-A0hrdBcUyobPhBxakiouv0mFsUd"><strong style="font-size: 16px;">6.6 Can OBV be used as a standalone trading signal?</strong></h3><div class="ace-line ace-line old-record-id-Jls9dILd8ooBvMxdzKuub0Q5sef"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-FGTLds4lzoCDEjxEj4XuPRawsbc"><span style="font-size: 16px;">It is not recommended. OBV signals should be confirmed with other technical analysis tools. Traders can combine OBV with price structure, moving averages, and other indicators to improve the reliability of their decisions.</span></div><div class="ace-line ace-line old-record-id-D1y9dPGXqodbB7x2qmwuDuqSs0b"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-N4dDdFosPoO3KHxgnQIuizs4sZJ"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-Ct1rduI1uo5Rx8xsAIKup07ps5u" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-displaced-moving-average-dma-in-trading-447820795253059584" style="font-size: 16px;">How to Use the Displaced Moving Average (DMA) in Trading: A Complete Beginner's Guide</a></div></li><li class="ace-line ace-line old-record-id-VoCFd1RKboYR6zxLccOuUBUOsle" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-triple-exponential-average-trix-in-trading-451158981274473472" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Triple Exponential Average in Trading: A Complete Beginner's Guide</a></div></li><li class="ace-line ace-line old-record-id-Niuwdpn37ovghwxuX6ZuICdwsEb" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-commodity-channel-index-cci-in-trading-436075700375966720" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Commodity Channel Index (CCI) in Trading: A Complete Beginner's Guide</a></div></li><li class="ace-line ace-line old-record-id-GQSgdnjOaobaz5xfFCfuaf2RsLb" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-bias-ratio-bias-in-trading-432486920192694272" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Bias Ratio (BIAS) in Trading: A Complete Beginner's Guide</a></div></li><li class="ace-line ace-line old-record-id-CblCdi0aDo4foyxjiTtudvymsAf" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-psychological-line-psy-indicator-in-trading-443492945687418880" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Psychological Line (PSY) Indicator in Trading: A Complete Beginner's Guide</a></div></li></ul><div class="ace-line ace-line old-record-id-H0IzdIMipoVdw5xe5jduxwLEs1u"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-U3T8d5UDFoRZyPxIuEluvQJZs47"><span style="font-size: 16px;"><strong>Risk Disclaimer: </strong>Technical indicators are calculated using historical data and are provided for reference only. They cannot guarantee future market performance. Digital asset markets are highly volatile, and trading involves risk. Make decisions carefully based on your own risk tolerance and avoid following market trends blindly.</span></div><div class="ace-line ace-line old-record-id-QOUXdjpApoPva8xkvcZuv4Mjskc"><span style="font-size: 16px;"><br></span></div></div>
How to Use the Triple Exponential Average (TRIX) in Trading: A Complete Beginner's Guide
<div data-page-id="ZD8ndukvVowBiRxYb7BubewhsZh" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-doxusC8w4qjdXotuz1D8wxAXRCc"><strong>Content Overview</strong></h2><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-doxus0utFFYXg1pN2DzdBDxpmNb" data-list="bullet"><div><span style="font-size: 16px;">The Triple Exponential Average (TRIX) uses triple exponential smoothing to filter out market noise and help identify trend direction.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusH9UBiwU4xBBPanCFiCFdLh" data-list="bullet"><div><span style="font-size: 16px;">TRIX oscillates around the zero line. Positive values indicate bullish momentum, while negative values indicate bearish momentum.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusCnL8PC8AvfLhfvAs7pU3Uh" data-list="bullet"><div><span style="font-size: 16px;">Common TRIX trading signals include zero-line crossovers, signal-line crossovers, and divergence.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusEbEVm97BGulH3jBq4tOktd" data-list="bullet"><div><span style="font-size: 16px;">The indicator period can be adjusted to suit different trading styles, with shorter periods suited to short-term trading and longer periods suited to swing trading.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxuspYUKhI2WoJrGU5Ug9xOH9g" data-list="bullet"><div><span style="font-size: 16px;">Users can add TRIX to the charting tools on MEXC and combine it with other analytical tools to support trading decisions.</span></div></li></ul><div style="text-align:left" class="ace-line ace-line old-record-id-doxusFuJ5lUs9XNiiVBudHEnIEh"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusw5SNbbdXVk6MgZswBmgyTb"><strong>1. What Is the Triple Exponential Average?</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusPMNqWIEa4wsLaud7lGe4eb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusW53PW9N0OqbC05RgyZwRah"><span style="font-size: 16px;">The Triple Exponential Average (TRIX), developed by Jack Hutson in the 1980s, is a widely used technical analysis indicator. It calculates the percentage rate of change of a triple-smoothed exponential moving average, filtering out short-term price fluctuations and insignificant noise to show the market's primary trend more clearly.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusOxaxfUYxV0oUWLeuEiRqPd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusbeEx2RE9TPIjmiAq8g52qS"><span style="font-size: 16px;">The indicator is based on three rounds of smoothing. First, an Exponential Moving Average is calculated using closing prices. The result is then smoothed a second and third time. This multilayered smoothing significantly reduces the impact of minor fluctuations, allowing traders to focus on more meaningful trend changes. Similar to the <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-macd-indicator-in-trading-426304203100942336">Moving Average Convergence Divergence</a>, TRIX can help assess overbought and oversold conditions and generate potential buy and sell signals.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusA8D8OEP46IaFZH6Iv12Ile"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"e1844bbd-4735-410f-ac24-c10380b2cf51","height":1478,"width":2938,"currHeight":1478,"currWidth":2938,"natrualHeight":1478,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FBqR6br6jyobxImxAzp6uwIUCsUf%2F%3Fpreview_type%3D16","file_token":"BqR6br6jyobxImxAzp6uwIUCsUf","image_type":"image/jpeg","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlgt6lo7h9IsMYh04N50F7jbd"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260831212305258VoLma6cyhRAJeB.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJCcVI2YnI2anlvYnhJbXhBenA2dXdJVUNzVWYiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGd0NmxvN2g5SXNNWWgwNE41MEY3amJkIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9CcVI2YnI2anlvYnhJbXhBenA2dXdJVUNzVWYvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/BqR6br6jyobxImxAzp6uwIUCsUf/?mount_node_token=doxlgt6lo7h9IsMYh04N50F7jbd&mount_point=docx_image" data-width="2938" data-height="1478" data-lark-image-uri="drivetoken://BqR6br6jyobxImxAzp6uwIUCsUf" data-lark-image-width="2938" data-lark-image-height="1478" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuslHWtMidvDFn4XzfUpSFN5e"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusdnjE1hVaVTydq3DHOVEpzc"><strong>2. How to Use the Triple Exponential Average in Trading</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusvEM9mT61J6OuQMN3eoy2rh"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusML4AZVBVzh2n1gzYRJAnYe"><span style="font-size: 16px;">2.1 Zero-line crossover signals</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusLTh6vlsjF19GCYMay39hBe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus0vWJSpFvDHeOMNOKVNjUqg"><span style="font-size: 16px;">When the TRIX line crosses above the zero line, momentum shifts from negative to positive, which may indicate the beginning of an uptrend. Traders may consider looking for potential buying opportunities. When the TRIX line crosses below the zero line, momentum is weakening, and traders may consider reducing their positions or looking for potential selling opportunities.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusSZDLZj34glGcu4B05qBsGf"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusZzWXNZRix8dfKHt4frNCec"><span style="font-size: 16px;">2.2 Signal-line crossover signals</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusjvxTzr0dArSZoU8w0RdXyf"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxussSX6DYdaGLvEtpRA8Z6fhh"><span style="font-size: 16px;">Traders often overlay a signal line on TRIX, typically a 9-period Exponential Moving Average of the indicator itself. A crossover above the signal line is generally considered bullish, while a crossover below it is considered bearish.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxustfxBnNXOlWekFq1oVSTApf"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusnIDvliGbwwRdg0SaKvDxkg"><span style="font-size: 16px;">This method can be used in both trending and range-bound markets. In a range-bound market, it may help confirm support and resistance areas. In a trending market, it may help confirm that a pullback has ended and the primary trend is resuming.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusNihGShVE0sFfzYQzfQBVCc"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxus4sAJ7pLM9OMJx1LpnzxFzg"><span style="font-size: 16px;">2.3 Divergence signals</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusFH7Y16zIRiy6pCKHhC9tph"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusT4w6xStJ8Or1TGk4ni6eXd"><span style="font-size: 16px;">Divergence is an important tool for identifying potential trend reversals. When price forms a lower low while TRIX forms a higher low, a bullish divergence occurs, suggesting that bearish momentum may be fading and price could reverse upward. When price forms a higher high while TRIX forms a lower high, a bearish divergence occurs, suggesting that the uptrend may be weakening.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusisxPrYOKTpWAkyFbjxy0Ig"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusgOCxypgB270QhaEmK9uSce"><strong>3. Advantages and Limitations of the TRIX Indicator</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusTi92DRHSfJ6CejqR6Ywmzc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusQJ5dNphe8YFeDOgnrCCBHb"><strong style="font-size: 16px;">Advantages:</strong></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusc16aTf6m6FmPL5IXx3geWh"><span style="font-size: 16px;"><br></span></div><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusmG42U5ajJiGCd4DTKBOGxe" data-list="bullet"><div><span style="font-size: 16px;">Triple smoothing effectively filters out noise and produces clearer signals.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusJhJlNJH9KWoONAeHg04Mje" data-list="bullet"><div><span style="font-size: 16px;">Divergence can help provide early warning of potential trend reversals.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusOnsBnEubKS33QvNqBwCmFd" data-list="bullet"><div><span style="font-size: 16px;">Flexible parameters can be adapted to different time frames and trading styles.</span></div></li></ul><div style="text-align:left" class="ace-line ace-line old-record-id-doxusnLuMy3LP4biqLpAksVy9bd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusopSIqpYM3QiXLEv3S3Itzb"><strong style="font-size: 16px;">Limitations:</strong></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus6AWxL0WKj5WRGDQxqatSpd"><span style="font-size: 16px;"><br></span></div><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxus1ZG2Vwn8fQgDKOL0amd8id" data-list="bullet"><div><span style="font-size: 16px;">As a lagging indicator based on moving averages, TRIX may produce delayed signals during rapid market reversals.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxuseRCujt3HsvBHHbunKvuK0c" data-list="bullet"><div><span style="font-size: 16px;">It can generate false signals in range-bound markets.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusEHEJ2to2orohfxpYSivryh" data-list="bullet"><div><span style="font-size: 16px;">Parameter selection involves a degree of subjectivity.</span></div></li></ul><div style="text-align:left" class="ace-line ace-line old-record-id-doxushxztaNqyPkgUJByQFv4Ydg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusAy5Ktp5dnyCqeM6Fa2zvHg"><span style="font-size: 16px;">It is recommended to combine TRIX with other analytical methods, such as the <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-relative-strength-index-rsi-in-trading-425570029981283328">Relative Strength Index</a>, <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-moving-average-of-volume-in-trading-421863713722995712">volume indicators</a>, and support and resistance levels. Traders should also set strict stop-loss orders and manage position risk carefully.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxust8SZJz5LsX8oVDYXT9y8Lb"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxuskS11RwqBWIOL7ZhCSV8zYg"><strong>4. How to Use TRIX on MEXC</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxus5pfT2Kywaee18MGTCWD2Nd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusRWyvT5XXWZYIQVjRsZflNh"><span style="font-size: 16px;">MEXC offers comprehensive charting tools, allowing users to customize TRIX settings and combine it with other technical indicators.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusBNTNvNtTnXxB78kJ4AceCe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusRsJjL5kG1ddFX4HILr4Fcc"><span style="font-size: 16px;">Navigation: MEXC website → Spot/<a data-lark-is-custom="true" href="https://www.mexc.com/futures/BTC_USDT">Futures</a> → Indicators → TRIX</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuszZJrCmdNkIeOqfqdjGxLne"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusAghalow3mhTx1j1RzfEKMk"><span style="font-size: 16px;">Whether trading <a data-lark-is-custom="true" href="https://www.mexc.com/exchange/BTC_USDT">Spot</a> or Futures, combining zero-line crossovers, signal-line crossovers, and divergence signals may help users assess entry and exit timing more systematically. Beginners are encouraged to start with small amounts and gradually develop a trading system that suits their needs.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusj3CcdGWblHBx99rlYeNwIe"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"0b787f1e-0adb-416a-8e02-995140190727","height":1400,"width":2936,"currHeight":1400,"currWidth":2936,"natrualHeight":1400,"natrualWidth":2936,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FDrj7bszTcoWZHLxxSWJuqx2GsEg%2F%3Fpreview_type%3D16","file_token":"Drj7bszTcoWZHLxxSWJuqx2GsEg","image_type":"image/jpeg","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlgGuuyYslBYH4owN5iRr8X0e"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260831212307488vr07bsOEvqcxou.png" data-single-block="true" data-snapshot="eyJ0eXBlIjoiaW1hZ2UiLCJwYXJlbnRfaWQiOiJaRDhuZHVrdlZvd0JpUnhZYjdCdWJld2hzWmgiLCJjb21tZW50cyI6W10sInJldmlzaW9ucyI6W10sImxvY2tlZCI6ZmFsc2UsImhpZGRlbiI6ZmFsc2UsImF1dGhvciI6Ijc2MDMyMTcwNjc1MzMxNDM0NzYiLCJhbGlnbiI6IiIsImltYWdlIjp7InRva2VuIjoiRHJqN2JzelRjb1daSEx4eFNXSnVxeDJHc0VnIiwibWltZVR5cGUiOiJpbWFnZS9qcGVnIiwic2l6ZSI6MSwic2NhbGUiOjEsIndpZHRoIjoyOTM2LCJoZWlnaHQiOjE0MDAsIm5hbWUiOiJpbWFnZS5wbmciLCJjcm9wIjpbMCwwLDAsMF0sInJvdGF0aW9uIjowLCJjYXB0aW9uIjp7InRleHQiOnsiYXBvb2wiOnsibmV4dE51bSI6MCwibnVtVG9BdHRyaWIiOm51bGx9LCJpbml0aWFsQXR0cmlidXRlZFRleHRzIjp7ImF0dHJpYnMiOm51bGwsInRleHQiOm51bGx9fX19LCJhcmVhX2NvbW1lbnRzIjpudWxsfQ==" data-suite="eyJmaWxlVG9rZW4iOiJEcmo3YnN6VGNvV1pITHh4U1dKdXF4MkdzRWciLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGdHdXV5WXNsQllING93TjVpUnI4WDBlIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9Ecmo3YnN6VGNvV1pITHh4U1dKdXF4MkdzRWcvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/Drj7bszTcoWZHLxxSWJuqx2GsEg/?mount_node_token=doxlgGuuyYslBYH4owN5iRr8X0e&mount_point=docx_image" data-width="2936" data-height="1400" data-lark-image-uri="drivetoken://Drj7bszTcoWZHLxxSWJuqx2GsEg" data-lark-image-width="2936" data-lark-image-height="1400" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusWXTPDV0V5GCVCR5LPo27ib"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxuspxouq5QzLn7QjN2TL04ngQ"><strong>5. Triple Exponential Average FAQ</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHWut8Q7q29jsHmFKdWcPJc"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxuseh5Nw8oIT8XZjVkr6LqaAb"><strong style="font-size: 16px;">5.1 What is the Triple Exponential Average?</strong></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusJz8zDms6mfhDDH0ThsMC4e"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus9BMy4uwMv2Pt79JkBk978C"><span style="font-size: 16px;">TRIX is an oscillator that applies exponential smoothing to price data three times and measures the rate of change of the triple-smoothed average. It is used to identify trend direction and potential reversal points.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusop8qSyvO2IA4Xpnl0MOIZf"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusR1Ue3LNlPKrxTn2y7Bejsc"><strong style="font-size: 16px;">5.2 How do you use the TRIX indicator?</strong></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusqr8tAIEziPOloSgH8ExqXJ"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuscJZNeBkSuZN95afU3fOyZb"><span style="font-size: 16px;">Focus on three main signal types: TRIX crossing the zero line to identify trend direction; TRIX crossing its signal line to confirm potential buy or sell timing; and divergence between TRIX and price to warn of a potential trend reversal.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus5GSF6FKetA9BxGVGPKHiF7"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxus7SX9jARM80tgmpCjFhZN8d"><strong style="font-size: 16px;">5.3 What is the difference between TRIX and the Triple Exponential Moving Average?</strong></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusvihrfbcFwli3VTAwtzQrWs"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusSjqtKKXURRigTuwLDwzeqh"><span style="font-size: 16px;">TRIX shows the percentage rate of change of a triple-smoothed average and oscillates around the zero line. The Triple Exponential Moving Average is plotted over the price chart and is used to track price trends. The two indicators use related calculation logic but serve different purposes.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus78J7EMPmSFXkt5yvdSz0Gd"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusEznnsomSnapih6ZdIZW1Ic"><strong style="font-size: 16px;">5.4 How do you read a TRIX chart?</strong></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusU0K1vey1yQtEi7bP02KRzd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusUKGvYFYNWbuyfGJ1LX79Fb"><span style="font-size: 16px;">When TRIX is above the zero line and rising, bullish momentum is strengthening. When it is below the zero line and falling, bearish momentum is strengthening. Changes in the slope of the line can reflect the strength of the trend.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusEHpKhHVIjODQFWnAk6JKXd"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusRhC4CbyZCowZwmpTpEtIob"><strong style="font-size: 16px;">5.5 Is TRIX suitable for beginners?</strong></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHSNG4WcvfzoxQHSg5fhbwb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusAmDvlsUzmYWd3gNsuUplmO"><span style="font-size: 16px;">Yes. TRIX uses clear and intuitive signal rules, but beginners should be aware of its lag and the risk of false signals in range-bound markets. It is recommended to confirm signals with other indicators on MEXC and apply appropriate risk management.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus5CCFiVu8fPYdezj0QzL33f"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusVXB4kAssZc2SRdLnoQ8W1f"><span style="font-size: 16px;">With its strong noise-filtering capabilities, TRIX is a practical tool for assessing trend and momentum. By understanding zero-line crossovers, signal-line crossovers, and divergence, and combining them with suitable parameter settings and risk controls, beginners can incorporate TRIX into their trading strategies more effectively.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusUtkWgZN8MPOzOn5FDvkAae"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusOoSjt7dk2l434fwFDDluad"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusV64qGF5rsCUFyHsLgL3nmc" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-psychological-line-psy-indicator-in-trading-443492945687418880" style="font-size: 16px;">How to Use the Psychological Line (PSY) Indicator in Trading: A Complete Beginner's Guide</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxushQ7l0nryA0bOKPEax4MqAh" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-directional-movement-index-dmi-in-trading-437460810149061632" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Directional Movement Index (DMI) in Trading: A Complete Beginner's Guide</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusZf5yqCiU6Q0hYEnaeDMuRh" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-brar-indicator-in-trading-436020492866343936" data-lark-is-custom="true" style="font-size: 16px;">How to Use the BRAR Indicator in Trading: A Complete Beginner's Guide</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxus9JlxEx37gzXEkmiOeIx1ub" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-commodity-channel-index-cci-in-trading-436075700375966720" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Commodity Channel Index (CCI) in Trading: A Complete Beginner's Guide</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusdCcICrtRkzDVDQBWWni5hq" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-cr-energy-index-in-trading-441192234786152448" data-lark-is-custom="true" style="font-size: 16px;">How to Use the CR Energy Index in Trading: A Complete Beginner's Guide</a></div></li></ul><div style="text-align:left" class="ace-line ace-line old-record-id-doxusv44PJ9c6J066v4kIbUkcUh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusvxC3slSSWy6REm4uRCNPIb"><span style="font-size: 16px;"><strong>Risk Warning: </strong>Technical indicators are based on historical data and do not guarantee future performance. Digital assets are highly volatile. Trade cautiously based on your risk tolerance and avoid blindly following market trends.</span></div></div>
How to Open Futures Positions Using Spot and Flexible Savings Assets
<div data-page-id="SAr8dImKHo4v3zxb86eunSoZsvc" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-OoA5dDNAEoDhX0xJDmlu8BLgs4f"><strong>1. Opening Futures Positions Using Spot and Flexible Savings Assets</strong></h2><div class="ace-line ace-line old-record-id-doxusLXYgnrVrstkD7QT9H2h6Pf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Kjg9dKtFtomU1uxSJqMunLDysKe"><span style="font-size: 16px;">When opening a Futures position, this feature allows users to automatically use assets from their Spot account or Flexible Savings account as margin if the available balance in the Futures account is insufficient. This allows the system to meet the margin requirements and place the order to open the position.</span></div><div class="ace-line ace-line old-record-id-PNQPdSh5zotHNHxAJGourNgzsLg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-DHlMdeVN6oyXgvxDZCSuE9ahsOd"><span style="font-size: 16px;">After this feature is enabled, the system will automatically perform actions such as Flexible Savings redemption and asset transfers during order placement, without requiring manual action from the user. This greatly simplifies fund allocation. For users who are used to keeping funds in Spot accounts or Flexible Savings to earn returns, this feature allows them to keep funds flexibly allocated while still responding quickly to Futures trading opportunities.</span></div><div class="ace-line ace-line old-record-id-DkIJdBVF9oIl9gxTWAguuTHUstc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-TkDdd04DJonmajxHdHlu537UsUd"><span style="font-size: 16px;">At present, only assets staked in Flexible Savings are supported for opening Futures positions on the web platform. Support for using Spot assets to open Futures positions, as well as support on the mobile app, will be launched soon.</span></div><div class="ace-line ace-line old-record-id-doxusHP2AlcFELLiW4Np5LFqsTO"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-Cr8Pd1S3YobLZDxDmsXulCVSsvc"><strong>2. Requirements for Using Spot and Flexible Savings Assets to Open Futures Positions</strong></h2><div class="ace-line ace-line old-record-id-doxusiF1NGVzazyxzr0t4233Wje"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-E5pFdchlDoYbSUxPPGmuz4oisVd"><span style="font-size: 16px;">Before using this feature, please make sure the following conditions are met:</span></div><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-P1xmdaMbJoRN3LxOWfhu8cJeskb" data-list="bullet"><div><span style="font-size: 16px;">Your Spot account or Flexible Savings account holds available assets.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-UvgodNaqJocHMTxW2yhuZPvfsmf" data-list="bullet"><div><span style="font-size: 16px;">On the Futures trading page, you manually select the <strong>available accounts</strong> under <strong>Available</strong>.</span></div></li></ul><div class="ace-line ace-line old-record-id-Z20PdWstwo6LZGxTEuJuf09YsUg"><span style="font-size: 16px;">Please note that this feature is not supported in multi-asset margin mode. Planned orders and trailing stop orders also do not support opening Futures positions using Spot or Flexible Savings assets at this time.</span></div><div class="ace-line ace-line old-record-id-doxusaV1B2402SajYIGxU96FBcO"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-AIp6duSAuomx54xXpquuw9F8s0d"><strong>3. How to Enable Spot and Flexible Savings Assets for Futures Trading</strong></h2><div class="ace-line ace-line old-record-id-doxusPzekBNfJw24NyKeukiqKve"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-NwDvdXvgBo3j9exy5gYuWgpxs7d"><span style="font-size: 16px;">Step 1: Enter the Futures Trading Page</span></h3><div class="ace-line ace-line old-record-id-Irj3dg4srokm7cx1rETujNGssFf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-CLOzdk2stoypDPxzhCOuyDpesMd"><span style="font-size: 16px;">Log in to your MEXC account and go to the <a data-lark-is-custom="true" href="https://www.mexc.com/futures/BTC_USDT">Futures trading</a> page.</span></div><div class="ace-line ace-line old-record-id-doxusBnvfMwVnWfIYizBw0KDiJd"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-Qwh0dCdZMoDyNVxjW5ruTNI5sLg"><span style="font-size: 16px;">Step 2: Find the Available Funds Section</span></h3><div class="ace-line ace-line old-record-id-LejKdporiodE6exOm01uTF4esNb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-IgrxduXKCo1P0Sx97A0ulheVs7b"><span style="font-size: 16px;">In the order placement area, find the <strong>Available</strong> button. This section is used to select which accounts can be used for the current position opening.</span></div><div class="ace-line ace-line old-record-id-H6rAdeXkaobj9Rx2maAuxs8ZseP"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{"items":[{"uuid":"327718c3-9ea4-41ff-afbc-9e815f6f0a27","height":1474,"width":2938,"currHeight":1474,"currWidth":2938,"natrualHeight":1474,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FIAzFbBNe3oMcSSxYepquBGqVsQb%2F%3Fpreview_type%3D16","file_token":"IAzFbBNe3oMcSSxYepquBGqVsQb","image_type":"image/png","size":813866,"comments":[]}]}" class="image-uploaded gallery old-record-id-Xs5ad4WcLog8L8xVeZMu1nc8smo"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260828134602494uivx8dFKTEH99Z.png" data-single-block="true" data-snapshot="eyJ0eXBlIjoiaW1hZ2UiLCJjaGlsZHJlbiI6W10sImNvbW1lbnRzIjpbXSwicmV2aXNpb25zIjpbXSwiYXV0aG9yIjoiNzIzNjIxNTgxNjA4NDA3ODU5NyIsImltYWdlIjp7InNyYyI6IiIsInRva2VuIjoiSUF6RmJCTmUzb01jU1N4WWVwcXVCR3FWc1FiIiwibWltZVR5cGUiOiJpbWFnZS9wbmciLCJzaXplIjo4MTM4NjYsIm5hbWUiOiJpbWFnZS5wbmciLCJzY2FsZSI6MSwid2lkdGgiOjI5MzgsImhlaWdodCI6MTQ3NCwiYWxpZ24iOiJjZW50ZXIifSwiYWxpZ24iOiJjZW50ZXIiLCJhcmVhX2NvbW1lbnRzIjp7fSwicGFyZW50X2lkIjoiU0FyOGRJbUtIbzR2M3p4Yjg2ZXVuU29ac3ZjIn0=" data-suite="eyJmaWxlVG9rZW4iOiJJQXpGYkJOZTNvTWNTU3hZZXBxdUJHcVZzUWIiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiWHM1YWQ0V2NMb2c4TDh4VmVaTXUxbmM4c21vIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9JQXpGYkJOZTNvTWNTU3hZZXBxdUJHcVZzUWIvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/IAzFbBNe3oMcSSxYepquBGqVsQb/?mount_node_token=Xs5ad4WcLog8L8xVeZMu1nc8smo&mount_point=docx_image" data-width="2938" data-height="1474" data-lark-image-uri="drivetoken://IAzFbBNe3oMcSSxYepquBGqVsQb" data-lark-image-width="2938" data-lark-image-height="1474" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-doxusHoJgrpjixTw84jLi5vYtDd"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-V5QgdNGjJoJSX5xHn7ludKCzs7b"><span style="font-size: 16px;">Step 3: Select the Accounts You Want to Use</span></h3><div class="ace-line ace-line old-record-id-ZeHVdNwzDo0c7Hx2bcQuPca1sZg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-JGjfdkJw1oLEUXxY216uJhrUssd"><span style="font-size: 16px;">Click <strong>Available</strong> to view the selectable options. The Futures account is selected by default. You can also select the Spot account or the Flexible Savings account, or select both at the same time. After selection, assets from these accounts will be included as available funds for opening the position.</span></div><div class="ace-line ace-line old-record-id-doxusncC1jJFxmTSIe9y8TQkLDc"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-BjSsdE5kUok993xFLd1uPct4s2x"><span style="font-size: 16px;">Step 4: Submit Futures Order</span></h3><div class="ace-line ace-line old-record-id-IxiEdek4Ro0jWexQON6uDom3slb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-HyTUdlTAVoJyXBxZ2nEu9q25s7e"><span style="font-size: 16px;">After selecting the accounts, enter the price and quantity as usual in the order panel and submit the order. If the Futures account balance is insufficient, the system will automatically use assets from the selected accounts to meet the margin requirements.</span></div><div class="ace-line ace-line old-record-id-doxuscNZXQQ38G1Xx6MAAjwVpIh"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-JzXJd7ywVoLaRSxQ5q1uzII9sgc"><strong>4. How the Feature Works in Different Situations</strong></h2><div class="ace-line ace-line old-record-id-doxusFNZBKs0ZmQfxuO8etyM0ef"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-E0XHd8ITDoXSkFxe35JuKCbcsnd"><span style="font-size: 16px;">4.1 When the Futures Account Has Sufficient Funds</span></h3><div class="ace-line ace-line old-record-id-doxus5S8ILvfzLok459CASdZkMh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Q1andi20qoApZBx8518uozmfsrh"><span style="font-size: 16px;">If the funds required for the order are less than or equal to the available balance in the Futures account, the system will use the Futures account balance directly to open the position. No redemption or transfer will occur. Even if you have selected the Spot account or Flexible Savings account, the system will always prioritize using funds from the Futures account.</span></div><div class="ace-line ace-line old-record-id-doxusJ24A1BotMpvdQ9RRusSbQQ"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-PhkgdvJ8Vo27RRxM3SFuOLBXsSh"><span style="font-size: 16px;">4.2 When the Futures Account Has Insufficient Funds</span></h3><div class="ace-line ace-line old-record-id-doxus7ZmLX7XV7MQnO9a4RuFf5R"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-KOjWd18MToCZ1ZxZiPMunlursZf"><span style="font-size: 16px;">If the funds required for the order exceed the available balance in the Futures account, the system will automatically use assets from the other accounts you selected. The system first calculates the required amount. If the Flexible Savings account is selected, the system will automatically redeem assets. If the Spot account is selected, the system will automatically transfer assets. After the margin requirements are met, the system will continue placing the order to open the position.</span></div><div class="ace-line ace-line old-record-id-doxusqTuGKi2hG4JBXpXlWIbv7e"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-PN6Rd7dtBoPQQdxaFRFuPRLmsRe"><span style="font-size: 16px;">4.3 Example</span></h3><div class="ace-line ace-line old-record-id-doxuslsdm2ZpjslnlZOEyhbhsUh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-PL1OdFI1yo14gFxSM4durDq2sQg"><span style="font-size: 16px;">Assume your Futures account has an available balance of 100 USDT, and opening the position requires 150 USDT in margin. If you have selected the Spot account or Flexible Savings account, the system will automatically use 50 USDT from the selected account. After redemption or transfer is completed, the position will be opened.</span></div><div class="ace-line ace-line old-record-id-doxusg8wNqUE0uScgdxfKl3e0cg"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-Tet8dB7PxoQzC8xeU2cuwGiPsOe"><strong>5. Adding Margin to Isolated Positions Using Spot and Flexible Savings Assets</strong></h2><div class="ace-line ace-line old-record-id-doxustZhnJBw2py70zWHFouYmab"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-UrObdu2LPo6MafxIDnTugqzRswg"><span style="font-size: 16px;">In addition to opening positions, this feature also supports adding margin to isolated positions. When you need to add margin to an existing position to reduce liquidation risk, you can directly use assets from your Spot account or Flexible Savings account without manually redeeming or transferring assets.</span></div><div class="ace-line ace-line old-record-id-BGZjdcED3oyGOAxfzcAuRrZYstc"><span style="font-size: 16px;">To do this, select the isolated position you want to adjust in the order area and click the pencil icon next to <strong>Margin</strong>. In the <strong>Modify Margin</strong> window, click <strong>Max Addable</strong>, select the account to use, enter the amount, and confirm to complete the process.</span></div><div class="ace-line ace-line old-record-id-doxuskz0yn5VVxqnkaow0B8ve3b"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-RmKrdVr18o2UBQxE1DkutVHzs7A"><strong>6. Notes</strong></h2><div class="ace-line ace-line old-record-id-doxusLniaPd0IDhgfrIl4N4I8Ah"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-FkXldd5o9o9EZPxYMzTu4vdAsZe"><span style="font-size: 16px;">When using this feature, please note the following: After selecting additional accounts, if the funds required for the order exceed the available balance in the Futures account, the system will automatically perform redemption and transfer actions. Selecting additional accounts does not necessarily increase your available balance immediately. Assets may not meet redemption or transfer conditions, may be subject to limits, or may fail due to system processing issues. This feature only applies to opening positions and adding margin. Liquidation or automatic margin addition for isolated positions will not affect your Spot assets or Flexible Savings assets. If redemption or transfer fails during order placement, the order will fail. Assets will not be automatically returned to the original account, and no re-staking will occur.</span></div><div class="ace-line ace-line old-record-id-doxuswRgmJo3H1bDYVek8acc5Kd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-GRCTdk0aMoiwKExCKwGuDrGxskc"><strong>7. Users Suitable for This Feature</strong></h2><div class="ace-line ace-line old-record-id-doxusyyLIVvZ1BdNBjmnqMrn3dc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-DVpzdjoeVoyshJxIi2BuO6SysTc"><span style="font-size: 16px;">This feature is particularly suitable for:</span></div><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-FDySdufdCoEnsmxsbqBu2n6Gssc" data-list="bullet"><div><span style="font-size: 16px;">Users who prefer to keep funds in Spot accounts or Flexible Savings to earn interest, while still being able to open positions quickly when trading opportunities arise.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-JgwLdUeWGoIp2pxhBLZupwK3skg" data-list="bullet"><div><span style="font-size: 16px;">Users who frequently need to add margin to isolated positions and want to reduce manual steps.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-BCO8dEtpGoB5Lex1ZXUuizngs6f" data-list="bullet"><div><span style="font-size: 16px;">Users who want to keep funds flexibly allocated and avoid holding large idle balances in the Futures account.</span></div></li></ul><div class="ace-line ace-line old-record-id-doxusxZVhmOzcQCt9Io48TVGfH8"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Nle3dWOsxoJHztxLrBBu6dB5sYg"><span style="font-size: 16px;"><strong>Risk Notice: </strong>Crypto asset prices are highly volatile. This article is provided for feature usage instructions only and does not constitute any investment advice. Please proceed with caution after fully understanding the risks of Futures trading.</span></div><div class="ace-line ace-line old-record-id-doxusVALqjf8XRQfLORNNbOY5Qb"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-OUcFd29eMoZsR0xQgyVuVnOBsPg"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-P5IkdfuFUo1ZkFxTkGmufY6Psze" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/using-spot-and-flexible-savings-assets-to-open-futures-positions-faq-298069270054317056" style="font-size: 16px;">Using Spot and Flexible Savings Assets to Open Futures Positions FAQ</a></div></li><li class="ace-line ace-line old-record-id-GE7ndS1iholzeQx7hFduAVguscg" data-list="bullet"><div><a href="https://www.mexc.com/support/article/mexc-futures-calculation-guide-312060306409668608" data-lark-is-custom="true" style="font-size: 16px;">MEXC Futures Calculation Guide: Fees, Unrealized PNL, and Closing Profit Explained</a></div></li><li class="ace-line ace-line old-record-id-Xv8Dd0L36oPMtXxj99ruunrxsMd" data-list="bullet"><div><a href="https://www.mexc.com/support/article/usage-instructions-for-futures-bonus-position-airdrop-and-vouchers-360054857791" data-lark-is-custom="true" style="font-size: 16px;">Usage Instructions for Futures Bonus, Position Airdrop, and Vouchers</a></div></li><li class="ace-line ace-line old-record-id-VBuvdYloqoQC18xlu5zutoVBssg" data-list="bullet"><div><a href="https://www.mexc.com/support/article/mexc-futures-funding-rate-305432020820705280" data-lark-is-custom="true" style="font-size: 16px;">MEXC Futures Funding Rate: Calculation Methods and How to View Funding Rates</a></div></li><li class="ace-line ace-line old-record-id-MwiMdjD0ToXViNxhCMxuSrQOswI" data-list="bullet"><div><a href="https://www.mexc.com/support/article/mexc-futures-loss-coverage-faq-353767290712346624" data-lark-is-custom="true" style="font-size: 16px;">MEXC Futures Loss Coverage FAQ</a></div></li></ul><div class="ace-line ace-line old-record-id-KiB3d1KGeoURbQxu9geuE296suf"><br></div></div>
How to Use PNL Margin on MEXC？
<div data-page-id="Yl9PdEmEEof2aRxCiHHuU3a1sXc" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-VoxwdC8AuoMO6yxqcFkuAmUzs8n"><strong>1. What Is PNL Margin?</strong></h2><div class="ace-line ace-line old-record-id-doxusvJVFNxVILthQLTqcNN9UZg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-C8bzdA2AXosKsRxg8U9unCmSsVf"><span style="font-size: 16px;">PNL Margin, also referred to as a rolling position strategy, is a trading method where unrealized profits from open futures positions are used as margin to open or increase additional positions. Instead of closing a profitable position to realize gains, traders leverage unrealized profits to expand their exposure, effectively growing their position size without adding new capital.</span></div><div class="ace-line ace-line old-record-id-doxusCSMQvyy4lte9hZpvAjW3vK"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-X3htdMgJroSYUmxD0hzuKFFesdg"><span style="font-size: 16px;">This approach is commonly used in high-leverage environments and is most effective during strong, strong directional markets. By continuously allocating unrealized profits into the same trade direction, traders aim to accelerate position growth. When executed correctly in a sustained trend, this creates a compounding or "snowball" effect, where both the position size and potential returns increase rapidly. Each successful scale-in amplifies overall exposure and return potential.</span></div><div class="ace-line ace-line old-record-id-doxushkondOR5ui0SXXj9jomXbb"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-U7O5d8lp3o9xgJxoA6juOfwmsHd"><strong>2. PNL Margin Process in Futures Trading</strong></h2><div class="ace-line ace-line old-record-id-P4FUd8dseotNFzxAfbPuiD0MsQW"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-XEsVdDK76okxljxbP8JuJb12sKe"><span style="font-size: 16px;">The typical workflow is as follows: A trader first opens a futures position using initial capital. Once the position becomes profitable, instead of realizing the gains, both the principal and unrealized profits are used as margin to increase exposure. When executed successfully in sequence, this compounding approach can accelerate account growth at an exponential pace. </span></div><div class="ace-line ace-line old-record-id-N7s4dGT5QoiJ7ux28X3ulMVxsYe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-KDoCdOg7hoyBDKxIVVjuJpYOsmd"><span style="font-size: 16px;">To illustrate, let's assume a trader starts with 10,000 USDT. When the price of BTC reaches 40,000 USDT, the trader opens a 10x leveraged long position, creating an initial position size of 100,000 USDT (≈ 2.5 BTC). From there, the trader adopts a PNL Margin strategy and performed two rollovers:</span></div><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-O0A4d6kAkoXp2Px6J6Oue3lns6d" data-list="bullet"><div><span style="font-size: 16px;"><strong>First Rollover:</strong> When BTC rises to 44,000 USDT (+10%), the 10,000 USDT unrealized profit is added as new margin, expanding the position size to 200,000 USDT (≈ 4.5 BTC).</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-R7CUdyVbpo5SAaxdYfJuPZA6s1c" data-list="bullet"><div><span style="font-size: 16px;"><strong>Second Rollover:</strong> BTC then climbs to 47,960 USDT (+9%), generating an unrealized profit of 18,000 USDT. This profit is again used as margin, further expanding the position size to 380,000 USDT (≈ 7.9 BTC).</span></div></li></ul><div class="ace-line ace-line old-record-id-AdBxdYGrQo3TmHxXivLut6ObsLf"><span style="font-size: 16px;">The step-by-step process is illustrated in the table below: </span></div><div class="ace-line ace-line old-record-id-J7eadGgz4oPcaQxUJoVuiciosFd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-MaJ2dh8gcojFUexgK9UutkfXswh"><span style="font-size: 16px;"><strong>Rollover with </strong><strong>PNL</strong><strong> Margin </strong></span></div><div><table class="ace-table" data-ace-table-col-widths="100;100;100;100;100;100;219;100" style="border:none;border-collapse:collapse;table-layout:fixed;width:500px;"><colgroup><col width="100"><col width="100"><col width="100"><col width="100"><col width="100"><col width="100"><col width="219"><col width="100"></colgroup><tbody><tr style="height:39px;"><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-VkzJdOLm8oBn6GxoeQmu4ZSQs6f"><strong style="font-size: 16px;">Step </strong></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-R6WJdaHcNoZb7TxGQGMujDz0sDb"><strong style="font-size: 16px;">BTC Price (USDT)</strong></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-UWY1dxRv8oU2HwxXwIfuPkbWscg"><strong style="font-size: 16px;">Price Change</strong></div><div class="ace-line ace-line old-record-id-LSMxdelUNokD8hxHCsbudsMZs9b"><span style="font-size: 16px;"><br></span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-OJkLdTllOoEaTmxeaU5uqhpYsme"><strong style="font-size: 16px;">Position Size</strong></div><div class="ace-line ace-line old-record-id-UfxCdEHvNoIH4ExW7Q9uRIvYsNc"><strong style="font-size: 16px;">(USDT)</strong></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-T97DdUqjCo6RfCx1b8BuIWAJsLb"><strong style="font-size: 16px;">Unrealized Profit </strong></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-TiztdlbOBoUDcHxCKGquh7VHstg"><span style="font-size: 16px;"><strong>Account Equity</strong><strong> (USDT)</strong></span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-TyoDdGbERo4pecxdccZuQn0Isge"><strong style="font-size: 16px;">Action </strong></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-PkVjdTQ4Lopk8Lx7vEPuXKJCsle"><span style="font-size: 16px;"><strong>Resulting </strong><strong>Position Size</strong><strong> (USDT)</strong></span></div></td></tr><tr style="height:39px;"><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-VLRydTLOqoOUs3xsomku7I5uskh"><span style="font-size: 16px;">Initial Position </span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-QnXCdAhRFo6BJex0i3JuNWdasFd"><span style="font-size: 16px;">40,000</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-XUfUdxUQToU66CxkyuEuSJxWsHf"><span style="font-size: 16px;">-</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-WKrBdychno1d8YxuuZkuk6RXsbh"><span style="font-size: 16px;">100,000 </span></div><div class="ace-line ace-line old-record-id-EXDVdayC6oFe5ExBBfCuNHCHsKf"><span style="font-size: 16px;"><br></span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-O34qdAz9poRchKx3zb6uZRjksSf"><span style="font-size: 16px;">-</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-FJqed3xDZowziYxeADrut8gMsfh"><span style="font-size: 16px;">10,000</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-SG1md0X5CoAA16xUPHVu5R45sEc"><span style="font-size: 16px;">-</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-TSw8d168cofzfDxhrcfuwJ7OsIc"><span style="font-size: 16px;">100,000</span></div></td></tr><tr style="height:39px;"><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-G9lLdEOIxopCS7xQecAuP2WwsYc"><span style="font-size: 16px;">1st Rollover</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-JyVIdh26UotK2XxXyTfub6Lhsrg"><span style="font-size: 16px;">44,000</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-HK26dkMZgoSubvxKtQuuYopFs8e"><span style="font-size: 16px;">+10%</span></div><div class="ace-line ace-line old-record-id-J3uxdR2WPoyC0Ox0RA3uGGAhsFg"><span style="font-size: 16px;"><br></span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-PwTYd0ZCno2abzxWNF5uZ2rYsgd"><span style="font-size: 16px;">100,000 </span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-SKOJd0xNeoGsiAx0Rpzuwkwns6e"><span style="font-size: 16px;">10,000</span></div><div class="ace-line ace-line old-record-id-V6bLdKWkNo5u8xxo85LugvvVsRd"><span style="font-size: 16px;"><br></span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-MhwqdNcZUoyjWKxi4ZVuYivzs0g"><span style="font-size: 16px;">20,000</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-IgIRdZbtTog0c7xMVkauLgXjstf"><span style="font-size: 16px;">Use unrealized profit (10,000 USDT) as margin to add positions at 10x leverage </span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-UvjXdyvOLoYuaWxWXDTuuDbts0g"><span style="font-size: 16px;">200,000</span></div></td></tr><tr style="height:39px;"><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-U8nRdOyBKofJc6xmOkAu2XX1s8f"><span style="font-size: 16px;">2nd Rollover </span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-WDoVdFbH7onIPYxbH1wuYcSZswe"><span style="font-size: 16px;">47,960</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-EDHEd03JxoOR5Axoe5GuW5X3sId"><span style="font-size: 16px;">+9%</span></div><div class="ace-line ace-line old-record-id-YqKed8DC5o4kQ0xMANNusl2Psah"><span style="font-size: 16px;"><br></span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-YwX7djAugo9Ks6xcUmeuG2EisPf"><span style="font-size: 16px;">200,000</span></div><div class="ace-line ace-line old-record-id-Sa33dQv1dovuRKxyR0quMdZcsvb"><span style="font-size: 16px;"><br></span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-HB3Bd035gotEH3xTMNYu07r1sIe"><span style="font-size: 16px;">18,000</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-H8Rpdgy21oJyahxfT7euFazUssh"><span style="font-size: 16px;">38,000</span></div><div class="ace-line ace-line old-record-id-JiRSdW37wov92xxfMAcuz8J9s7d"><span style="font-size: 16px;"><br></span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-MsFVdkcOion0d0xQVkyu4yWVsNe"><span style="font-size: 16px;">Use unrealized profit (18,000 USDT) as margin to add positions at 10x leverage </span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-AM4BdozkBoxuCExbqTmuS9F4s7f"><span style="font-size: 16px;">380,000</span></div><div class="ace-line ace-line old-record-id-FaX3dxsNjoHGNqxvJhquiVc7sN3"><span style="font-size: 16px;"><br></span></div></td></tr><tr style="height:39px;"><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-W3E4dljg9oscCxxycknuQM0js1f"><span style="font-size: 16px;">Final Leg</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-Z1mEd0E0eoXw5Sxjs4UulTOyspd"><span style="font-size: 16px;">52,000</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-HtZ6dhHHpojnxLx1xWruqZagsBg"><span style="font-size: 16px;">+8.4%</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-KzzYdHsNwozAEtx07M7uOYeTsnb"><span style="font-size: 16px;">380,000</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-Kie7dZeOGorXBkxyCl2uAx7fslh"><span style="font-size: 16px;">31,920</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-PZdSdoXxAocKzvxkhb0ulPd5slm"><span style="font-size: 16px;">69,920</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-WgiudQuLuoTicnxKib3uQONNsHb"><span style="font-size: 16px;">-</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-PCcUdl5ZQo8RZYxTlLfuQPTfsWd"><span style="font-size: 16px;">380,000</span></div></td></tr></tbody></table></div><div class="ace-line ace-line old-record-id-HRX5dWZ2qofOV5xmL8BuKII7sec"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusZztVCi1EpAFgktsvASrMnh"><strong style="font-size: 16px;">Outcome Comparison </strong></div><div><table class="ace-table" data-ace-table-col-widths="100;125;134;134;208;144;144" style="border:none;border-collapse:collapse;table-layout:fixed;width:500px;"><colgroup><col width="100"><col width="125"><col width="134"><col width="134"><col width="208"><col width="144"><col width="144"></colgroup><tbody><tr style="height:39px;"><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-NyWSdeoIPo7bJ3xVBRCuhqqrsgh"><strong style="font-size: 16px;">Scenario</strong></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-Urwkd7j0Ko1im1xQUf2upp3Dsnd"><strong style="font-size: 16px;">Entry Price (USDT)</strong></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-Sk2yd3BCuoubv6xg8m1uex98sBb"><strong style="font-size: 16px;">Final BTC Price (USDT)</strong></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-L8Rvd2Xc0oFExPx5mcquq4nVspe"><span style="font-size: 16px;"><strong>Final </strong><strong>Position Size</strong></span></div><div class="ace-line ace-line old-record-id-Ss0vdBkddop5RKxN3tUu8An4sdh"><span style="font-size: 16px;"><br></span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-A8IMdau0YoPd66x4oqOuwZW9sYe"><strong style="font-size: 16px;">Unrealized Profit (USDT) </strong></div><div class="ace-line ace-line old-record-id-S1hgd5HNaoETBYxfij3upi28sQg"><span style="font-size: 16px;"><br></span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-NeopdculHoEqrBxflIiucKbYsAf"><strong style="font-size: 16px;">Initial Margin</strong></div><div class="ace-line ace-line old-record-id-HZQDdtgFWojkpoxVDtauVVKPs2g"><strong style="font-size: 16px;">(USDT)</strong></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-W1jUd8a0HouieexOOCsuFCt8s78"><span style="font-size: 16px;"><strong>Final </strong><strong>Account Equity</strong><strong> (USDT)</strong></span></div></td></tr><tr style="height:39px;"><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-QFIydxZaxossAAxvBcYuUVHms6b"><span style="font-size: 16px;">Without PNL Margin</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-RbSLdQwXCoA5y4xDZEsu9QY1s3H"><span style="font-size: 16px;">40,000</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-YkLCdIYrFoldrNxG7ryujcxNsDg"><span style="font-size: 16px;">52,000</span></div><div class="ace-line ace-line old-record-id-DScrdjvX0oo1QPxDe7ZuPXj4sSb"><span style="font-size: 16px;"><br></span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-XyU7d1MgContdDxCWpJuzgKysZf"><span style="font-size: 16px;">100,000 UDST </span></div><div class="ace-line ace-line old-record-id-MOA1dcf4Locpo1xvfobuwNXAsTg"><span style="font-size: 16px;">(2.5 BTC) </span></div><div class="ace-line ace-line old-record-id-TU9DdDq6ooWUaDxruVEuPCyNsVc"><span style="font-size: 16px;"><br></span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-V7bYdpt0yo6RMMxKuv6ulmiksge"><span style="font-size: 16px;">(52,000 - 40,000) × 2.5 = </span></div><div class="ace-line ace-line old-record-id-Z2IDdUAUnoXgszxmXtXujlUdsxb"><span style="font-size: 16px;">30,000 </span></div><div class="ace-line ace-line old-record-id-IsvRdWh3ToVPXCxA2mFuxt6Aswe"><span style="font-size: 16px;"><br></span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-JbCSdXMm9oOZxcxFzzEuZUDqs7e"><span style="font-size: 16px;">10,000</span></div><div class="ace-line ace-line old-record-id-Lo8PdEhxuoUoU6xIxFgu2ZS8sLk"><span style="font-size: 16px;"><br></span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-U9OvdmyQ7oE46Dxbm3lu3cVBsfb"><span style="font-size: 16px;">40,000</span></div><div class="ace-line ace-line old-record-id-NeSedToI5oN58QxFsYhuhx9KsSa"><span style="font-size: 16px;"><br></span></div></td></tr><tr style="height:39px;"><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-AxfNdmPtko8vjHx61m7u81qSsoh"><span style="font-size: 16px;">With PNL Margin</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-KzDBdQ2hTodG25x5G91un918s9e"><span style="font-size: 16px;">40,000</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-VGZ5d9hMco0oLOxwuFSuXjMVsof"><span style="font-size: 16px;">52,000</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-NSaHdKGeyobdabxCYa3uOHnHsVd"><span style="font-size: 16px;">380,000 USDT</span></div><div class="ace-line ace-line old-record-id-VHUZd1B9coPbIFxKUgZuxEeAsng"><span style="font-size: 16px;">(7.9 BTC)</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-TZWZd1g2SoWa0fx1eiuuXgoSsHe"><span style="font-size: 16px;">31,920 (final leg)</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-Z9O8dgM0CoZbbxxrGGBuxtsysSh"><span style="font-size: 16px;">10,000</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: top; font-size: 10pt;"><div class="ace-line ace-line old-record-id-CA1ndmqumoNeRmxamt8ud8uus7f"><span style="font-size: 16px;">69,920</span></div><div class="ace-line ace-line old-record-id-Ru1pdCCRiouIKdxG7ipuFmQUsXf"><span style="font-size: 16px;"><br></span></div></td></tr></tbody></table></div><div class="ace-line ace-line old-record-id-YlQFd1K1xoWuq0xkdtuuXVBqsib"><span style="font-size: 16px;">Trading fees, funding costs, and potential slippage are excluded in this illustration for clarity. </span></div><div class="ace-line ace-line old-record-id-doxus4q5QqWT0fVJ8BJlgVUF77b"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Bl9MdlmE3oZIAyx5sgGuX9PossO"><span style="font-size: 16px;">This example demonstrates how the PNL Margin strategy can significantly amplify returns when the market trend is favorable. The key characteristics of this approach are:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-RJends0fMo66Otx5FWhuduFxssf"><span style="font-size: 16px;">1) Aggressive Position Sizing: Each rollover typically commits the entire account equity or nearly all of it.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-ERDOdf2W6ojayuxgckFuV5tksRK"><span style="font-size: 16px;">2) Dependence on Accurate Trend Judgment: A single misjudgement can wipe out all accumulated profits.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-DcyjdqWucoGfMMxOJKBuHNzUsOc"><span style="font-size: 16px;">3) Leverage-Driven: The strategy is normally applied in leveraged futures trading, which magnifies both potential gains and risks.</span></div><div class="ace-line ace-line old-record-id-doxus9tyRZU2eU59rubUtSjavag"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-QwXjdfJlRodNOFxoXwyu5lNSs5c"><strong>3. MEXC PNL Margin Features</strong></h2><div class="ace-line ace-line old-record-id-doxus5Q53D5VDcDbgxEETf5rTQb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-N8n5duZXioqE9Ixe6jzuZqwysBe"><span style="font-size: 16px;">1) Only newly opened Cross Margin positions can use the PNL Margin function. Isolated Margin positions are not eligible.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-XGpjd3VXuoSsJ5x42fjugs6Kstc"><span style="font-size: 16px;">2) When using PNL Margin, only unrealized profits from cross margin positions are counted as available funds. Unrealized profits from isolated margin positions cannot be used.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-KMckd3FvXoczYdxI245uGBT8sFh"><span style="font-size: 16px;">3) PNL Margin applies only in Single-Asset Margin mode. In Multi-Asset Margin mode, the available funds are calculated based on a different logic.</span></div><div class="ace-line ace-line old-record-id-doxusuSk02iQoeCHCxaxMpGmwTb"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-Drl1dsBAOoaNNrxVSxeul43Vs2b"><strong>4. How to Use PNL Margin on MEXC</strong></h2><div class="ace-line ace-line old-record-id-doxusEjK3lUXLLDhjLZb2FvHc5b"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusH4lInveMOTvYQJUQvPZ7Sf"><span style="font-size: 16px;">4.1 Web</span></h3><div class="ace-line ace-line old-record-id-doxusmVqw8vDfs8ZyI9Tnc2Rudc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-EHthdfCunoOYr0xK2YJudmxZssg"><span style="font-size: 16px;">Open the MEXC <a data-lark-is-custom="true" href="https://www.mexc.com/futures/BTC_USDT">Futures trading</a> page and select Cross Margin Mode. As the unrealized profit on your cross margin positions increases, your available funds will also increase.</span></div><div class="ace-line ace-line old-record-id-doxusO0iFlcDOG9HUebFtYtcAgf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-PB2zdNRyvoHJDkxl8f0uVTPdsKc"><span style="font-size: 16px;">Available Funds (Cross Margin) = Wallet Balance – Position Margin – Order Margin + Total Unrealized PNL of All Cross Margin Positions</span></div><div class="ace-line ace-line old-record-id-doxusuIWPfw3bdyk5SBDtF2H7xh"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{"items":[{"uuid":"4024104f-54e2-48a8-acc8-d54344fc74dc","height":1472,"width":2938,"currHeight":1472,"currWidth":2938,"natrualHeight":1472,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FDOHZbn5dXop4NHxAqU7uy23esWx%2F%3Fpreview_type%3D16","file_token":"DOHZbn5dXop4NHxAqU7uy23esWx","image_type":"image/png","size":1040912,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxusUT5nKNCxRV2PJvMkKHMaUd"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260827162625600eGbKmbvEYuFg3W.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJET0haYm41ZFhvcDROSHhBcVU3dXkyM2VzV3giLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94dXNVVDVuS05DeFJWMlBKdk1rS0hNYVVkIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9ET0haYm41ZFhvcDROSHhBcVU3dXkyM2VzV3gvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/DOHZbn5dXop4NHxAqU7uy23esWx/?mount_node_token=doxusUT5nKNCxRV2PJvMkKHMaUd&mount_point=docx_image" data-width="2938" data-height="1472" data-lark-image-uri="drivetoken://DOHZbn5dXop4NHxAqU7uy23esWx" data-lark-image-width="2938" data-lark-image-height="1472" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-doxuscbnoaY2ouRrfgNd7ShqW7b"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusgmTHM0Xz4N45dFV2hHf5Ph"><span style="font-size: 16px;">4.2 App</span></h3><div class="ace-line ace-line old-record-id-doxus83yyDglAC3rDCoHOpHzLiC"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-Lr3hdHjNfovY0nxr0xcuf675sqb"><span style="font-size: 16px;">1) Open the MEXC App and tap <strong>Futures</strong>.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-SKl5d21y8obXCnxG2Isu9fX7sch"><span style="font-size: 16px;">2) Select Cross Margin Mode.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-RRbTdvtbbozXarxtYM8uXiL3swh"><span style="font-size: 16px;">3) After opening a position, as the unrealized profit on your cross margin positions increases, your available funds will also increase.</span></div><div class="ace-line ace-line old-record-id-doxusUYfkMP5aZofnQtQ7ySO7Lh"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{"items":[{"uuid":"6f213323-f62d-4bf2-8832-a57d8ca030bc","height":1022.6518391787853,"width":494,"currHeight":1022.6518391787853,"currWidth":494,"natrualHeight":2420,"natrualWidth":1169,"pluginName":"imageUpload","scale":0.42258340461933275,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FIuH4bHpjXogOR8x31MduH7oAsvh%2F%3Fpreview_type%3D16","file_token":"IuH4bHpjXogOR8x31MduH7oAsvh","image_type":"image/png","size":378200,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxusuPAV2TFY1041MCZQoOVdUU"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260827162624063VjJ7qZHpa6Skk0.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJJdUg0YkhwalhvZ09SOHgzMU1kdUg3b0FzdmgiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94dXN1UEFWMlRGWTEwNDFNQ1pRb09WZFVVIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9JdUg0YkhwalhvZ09SOHgzMU1kdUg3b0FzdmgvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/IuH4bHpjXogOR8x31MduH7oAsvh/?mount_node_token=doxusuPAV2TFY1041MCZQoOVdUU&mount_point=docx_image" data-width="1169" data-height="2420" data-lark-image-uri="drivetoken://IuH4bHpjXogOR8x31MduH7oAsvh" data-lark-image-width="1169" data-lark-image-height="2420" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px; width: 300px;"></div><div class="ace-line ace-line old-record-id-doxusQz6PzYgfp2DLzPl4R45mPd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-YrIVdVB5Goj9cixbY7nuk1uosSd"><span style="font-size: 16px;"><strong>Note:</strong> Under Advanced Margin Mode, users can select different margin modes for long and short positions. If the long position is set to isolated margin and the short position to cross margin, or the long position to cross margin and the short position to isolated margin, the available funds will still be displayed as cross margin available funds.</span></div><div class="ace-line ace-line old-record-id-doxusqdzdxIahDtOK4UiS73uFCx"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" class="ace-line ace-line old-record-id-doxusMDCzrXWxaOPugu9g5LKKcd"><span style="font-size: 16px;">*BTN-Start Trading&BTNURL=<a data-lark-is-custom="true" href="https://www.mexc.com/futures/BTC_USDT">https://www.mexc.com/futures/BTC_USDT</a>*</span></div><div class="ace-line ace-line old-record-id-YskbdWq9EoSXFfxBhXsuWEMjsKg"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-YB9sdzEZsoN0WJxrGPzup4Srscw"><strong>Conclusion</strong></h2><div class="ace-line ace-line old-record-id-doxusnuoyG0azGO4MzUj4fD4J0s"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-QenRdKZ5zoqRcIxI2AsuT7yZsIe"><span style="font-size: 16px;">The key to PNL Margin trading lies in accurately gauging the sustainability of a market trend. It requires traders to decisively add to positions when the trend is clear and momentum is strong, maximizing profit capture through continuous compounding. However, this strategy is inherently a double-edged sword: while it can generate extraordinary returns during a sustained trend, a sudden reversal may quickly wipe out both accumulated unrealized gains and initial capital. Market unpredictability, emotional decision-making, and the use of high leverage all amplify these risks.</span></div><div class="ace-line ace-line old-record-id-doxusMBKvIqUSdV016rDsg92SmA"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-H0oWdnxEKov7Dvx3nOLunY6WsWh"><span style="font-size: 16px;">For this reason, PNL Margin is considered a high-risk, high-reward strategy that demands precise market judgment, strict discipline, and strong psychological resilience. Traders are advised to establish clear take-profit and stop-loss levels, apply robust risk management, and secure a portion of profits in time. Anyone attempting PNL Margin should only do so with small amounts of capital they are fully prepared to lose.</span></div><div class="ace-line ace-line old-record-id-doxus1nnQuzpf5Lvc776MfjqDah"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-HDMOdWzz3oXMBMxwvh0uua9Qsbe"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-HDkLdfmIFoXN8yxzu1PuWSloseh" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-trade-futures-on-the-mexc-app-305421274812529664" style="font-size: 16px;">How to Trade Futures on the MEXC App</a></div></li><li class="ace-line ace-line old-record-id-DYQNdAtcxoXYG7xw1ZOuKLEBsDf" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-trade-futures-on-mexc-web-305423980641926144" data-lark-is-custom="true" style="font-size: 16px;">How to Trade Futures on MEXC Web</a></div></li><li class="ace-line ace-line old-record-id-RxbmdzUKwoAloKx1vdZunMXRsre" data-list="bullet"><div><a href="https://www.mexc.com/support/article/futures-trading-faq-305425827477864448" data-lark-is-custom="true" style="font-size: 16px;">Futures Trading FAQ: A Complete Beginner's Guide</a></div></li><li class="ace-line ace-line old-record-id-I3hEdTMPlo1qxlxsc77u3aiwsQg" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-moving-average-indicators-in-trading-416905955663768576" data-lark-is-custom="true" style="font-size: 16px;">How to Use Moving Average Indicators in Trading: A Complete Beginner's Guide</a></div></li><li class="ace-line ace-line old-record-id-LMb6d8B0GoyC39xjaH4u1CG9smb" data-list="bullet"><div><a href="https://www.mexc.com/support/article/mexc-futures-funding-rate-305432020820705280" data-lark-is-custom="true" style="font-size: 16px;">MEXC Futures Funding Rate: Calculation Methods and How to View Funding Rates</a></div></li></ul><div class="ace-line ace-line old-record-id-doxuswqdFwTlcMWfhDHjy8tXjVd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusikzmGHsT2RnoLNw58ke4ae"><span style="font-size: 16px;"><br></span></div></div>
How to Use the Displaced Moving Average (DMA) in Trading: A Complete Beginner's Guide
<div data-page-id="RtCid0APGoQsuvxR1TkumjQks5g" data-lark-html-role="root" data-docx-has-block-data="false"><h2 class="heading-2 ace-line old-record-id-doxusr8i2S2l5dgHeTsi8JAkSwc"><strong>Overview:</strong></h2><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-doxus6xjQiFAVnA0jwj0y01ALlf" data-list="bullet"><div><span style="font-size: 16px;">The Displaced Moving Average (DMA) is a technical analysis tool that shifts a standard moving average forward or backward on a chart.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusMLlQDZuT9o63gDU8gjbW9G" data-list="bullet"><div><span style="font-size: 16px;">The DMA may help traders visualize trends and filter out some short-term market.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusyMVgRWzYunlUrXzbBGT0yg" data-list="bullet"><div><span style="font-size: 16px;">The DMA can be used to identify potential support and resistance areas, helping traders plan entries and exits.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusYi176acdAJvSGkl0DA9E6g" data-list="bullet"><div><span style="font-size: 16px;">The DMA, Simple Moving Average (SMA), and Exponential Moving Average (EMA) each have their own strengths and limitations, making them suitable for different trading styles.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxuss6imzwAImvj9W1A8nFT52c" data-list="bullet"><div><span style="font-size: 16px;">On MEXC, users can easily configure and apply the DMA using the platform's built-in charting tools.</span></div></li></ul><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHFzY5Vm3sYlLAnLZuNtw5S"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusccQCrpG1wLsmbhYGYZg4QC"><strong>1. What Is the Displaced Moving Average?</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusGGtoK4r0Ox37vzwfjULjif"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusg63ElNG4AFWEduwOvoIPRc"><span style="font-size: 16px;">The Displaced Moving Average (DMA) is a technical indicator derived from the traditional <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-moving-average-indicators-in-trading-416905955663768576">moving average</a>. Its core principle is to shift a standard moving average, such as a Simple Moving Average (SMA) or an <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-exponential-moving-average-indicator-in-trading-416907527621799936">Exponential Moving Average</a> (EMA), forward or backward by a specified number of periods on the chart. The calculation itself does not change; only the moving average's position on the chart is adjusted.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusRSBcUcvjjq6jh9A24yAa6d"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusdTQciV5Xf3rfsjOcaXsyqt"><span style="font-size: 16px;">This shift may appear minor, but it can have a noticeable effect. When the moving average no longer closely follows every price fluctuation, traders may find it easier to observe the relationship between price and the broader trend, reduce distractions caused by short-term volatility, and make more measured trading decisions.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusDEG2R60axfXpUmRCSVv1Md"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusY6zQgH4Z6sDHWBBu3XKjlb"><strong>2. How Does the Displaced Moving Average Work?</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxus2z7hA6VOGt2HdDfstsXvjb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusEL7gRuD9fRxLYAnBhwoV0e"><span style="font-size: 16px;">Setting up a DMA involves two steps:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusj80JzYeVGCOdR8Kjn79Y7z"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusCKJEvmkYiX0ejiGh8em18f"><span style="font-size: 16px;">1) Choose the moving average period: Common examples include 10, 20, or 50 days. Shorter periods may suit active trading, while longer periods may be more appropriate for medium- to long-term trend analysis.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusL3ZKptBSo3CwcK7gRDytNh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus0xgzj54Y4jaZox9qIrPeYg"><span style="font-size: 16px;">2) Set the displacement value: A positive value shifts the moving average forward toward future periods, while a negative value shifts it backward toward historical periods.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusABk1aJKjdyD1b0qLphyVMf"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusTT3gPFP2JKzZihNA5ciJ9g"><span style="font-size: 16px;">A forward shift can help traders visualize the potential relationship between price and the moving average and anticipate how a trend may develop. A backward shift can support historical review by showing how price previously moved relative to the trend.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusvs5Z5PXn1MEYYHLVSr0q5E"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusKFw2Vsqx1DIbtN20BReoTe"><strong>3. How to Use the Displaced Moving Average in Trading</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxus6AYTtARdqAcuNcmZuMy8Df"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusrBgd0KLT8XBJcVENAkQLlh"><span style="font-size: 16px;">3.1 Identify the trend direction</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusdj2ro5h3hl16Hz9E32tUDZ"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusQ1UIaCWzfsI0qkevKEYaPd"><span style="font-size: 16px;">When price consistently trades above the displaced moving average, the market is generally considered to be in an uptrend. When price remains below the moving average, the market may be in a downtrend. Depending on the displacement setting, the line may produce fewer price crossovers, which can help traders avoid overreacting to short-term fluctuations.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusvoJ5oFHSkP2LsWWKvi55ig"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusZa22px5HLxxONoFOkL5vjg"><span style="font-size: 16px;">3.2 Identify support and resistance</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusSp5MKTWT8qAterJKvIRsCf"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusOgSc0dPiMOhwZbnj4Fj8Qf"><span style="font-size: 16px;">In an uptrend, traders can adjust the displacement so that the moving average aligns with previous pullback lows. When price approaches the moving average again, it may act as a support reference. Similarly, in a downtrend, the displaced moving average can be aligned with previous rebound highs and used as a resistance reference. A decisive break through the displaced moving average may indicate a potential trend reversal.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus6dJymCH8OCMsE2QLJlyknb"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxus8U8xJKCBdvLFU3fOZXYIne"><span style="font-size: 16px;">3.3 Combine it with other indicators</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusnnpaMiCSA57kxsLdTSKuAh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxussuva1CDsngkPoDGxWUt9Mc"><span style="font-size: 16px;">The DMA does not generate direct buy or sell signals on its own. A more reliable approach is to combine it with the <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-relative-strength-index-rsi-in-trading-425570029981283328">Relative Strength Index</a>, <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-macd-indicator-in-trading-426304203100942336">Moving Average Convergence Divergence</a>, candlestick patterns, and support and resistance levels. When the DMA aligns with signals from other indicators, traders may have greater confirmation for a potential set.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusbFx08CH2UQVHSshGsPk5UH"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusgMntmCPVju0Ce0cdwRbhWg"><strong>4. Differences Among the DMA, SMA, and EMA</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxus17Rylz4lYUhTHbBniCVBun"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuserIQOeA5akQHDAgTkBtxvb"><span style="font-size: 16px;">The SMA gives equal weight to all prices in the selected period and generally responds more slowly to recent price changes. The EMA gives more weight to recent prices, making it suitable for short-term analysis, but it may also produce more false signals. The DMA does not change how the underlying moving average is calculated. Instead, it shifts the moving average's position to make the trend structure easier to read, which may help reduce misinterpretation in volatile markets. However, all moving averages are based on historical data, and shifting a moving average does not allow the DMA to predict future prices.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus8nykPgsIvYAysV2QcSkAYc"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusxnqF1bJKr9fSlPQ4XU33ne"><strong>5. How to Use the DMA on MEXC</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxus5BV2S1Ej0BfDNXh6Eu5Ugd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusc8cNIMa9PVqZiMm8eV4r5f"><span style="font-size: 16px;">Open the chart for any trading pair on the MEXC <a data-lark-is-custom="true" href="https://www.mexc.com/exchange/BTC_USDT">Spot</a> or Futures trading page, then add the DMA from the indicator library.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus8LUESkUAfCXiQcF1tAM2Zg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusjENlt6ykJiAlQyhHYPmuKf"><span style="font-size: 16px;">Navigation: MEXC Website → Spot/<a data-lark-is-custom="true" href="https://www.mexc.com/futures/BTC_USDT">Futures</a> → Indicators → DMA</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusxYWdxRmu7I36vzarlNz2Me"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusG0WbmwGdjFY9sC3ct5BAAf"><strong>6. Advantages and Limitations of the DMA</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusQitCIQxZPW9LvndCt1tyHh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusAEaFUFiuroNkKGPWtJ2Whe"><span style="font-size: 16px;"><strong>Advantages:</strong> The chart remains simple and clear, making trends easier to identify; the displacement can reduce distracting signals caused by frequent crossovers.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxushQJDZqvfzfohq6SWxr1Ple"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusBRueCOD84r34HKqPOe6S7f"><span style="font-size: 16px;"><strong>Limitations:</strong> The DMA remains a lagging indicator and cannot predict the future; an excessive displacement may disconnect the moving average from actual market behavior; the indicator may be less effective in sideways markets or during periods of sharp volatility volatility triggered by major news; and it should not be used as the sole basis for trading decisions.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusQlZMMbr30eJ84rCghiu3me"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxushqLmuTuJzgZqucI7EB6H8g"><strong>7. Displaced Moving Average FAQ</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusIKOAuT5uLkkR5n5DlLzXwg"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxus9Jz6QnrrANgKXIRPRueHue"><strong style="font-size: 16px;">7.1 How do you use a displaced moving average in trading?</strong></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusieeATgJ6daWw2oGF3Qyplc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusjENNkKQGp6T4AyAMZyZasg"><span style="font-size: 16px;">First, set the moving average period and displacement value. Then, assess the trend by observing the relative positions of price and the moving average. Confirm the signal with other indicators before executing a trade.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusUTIM093rNHT3oNPhpwxJNR"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusBFthQNdvnoEuNW918aEzgQ"><strong style="font-size: 16px;">7.2 What is the difference between a DMA, an EMA, and an SMA?</strong></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusBmPQ4ONBM35fiYbjxCCS2f"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusVyYjuNyBACPAU1HyM5TLHf"><span style="font-size: 16px;">The SMA responds most slowly, while the <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-exponential-moving-average-indicator-in-trading-416907527621799936">EMA</a> is the most sensitive to recent price changes. The DMA shifts either type of moving average to a different position on the chart to make the trend easier to read.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus8JR4XlTdRp1NGtNgwKqCVb"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusQplVWU1Q5WK7jACkeLwxUg"><strong style="font-size: 16px;">7.3 What does the distance between price and a moving average indicate?</strong></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusBGWO7vkexmEKE74xdWyxVh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-FX0fdf9G3oXW3gxUEReueoDbsQh"><span style="font-size: 16px;">When price moves too far away from the moving average, it may suggest that price has become extended relative to its recent trend and could potentially move back toward the average. Traders can use this relationship as a reference for risk management.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusmsP7k9PVNYj4vRfSkpnSmh"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxus0o32m8efUWoRyqlszFCxub"><strong style="font-size: 16px;">7.4 Can the DMA be used alone to make trading decisions?</strong></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusMJTi3b4KZIyhw8lQDSIXmg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusZHKBFC4m9CyoYEJ7nMeqlb"><span style="font-size: 16px;">It is not recommended. The DMA is primarily used to improve chart clarity and trend identification. It should be combined with other technical indicators and risk management strategies.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusm8Q1XbVxobAe4yz2tNK6Kg"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusmPspQJq0qknPr4aWhboSng"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxus4WLCcdgtLeXi1qwwBqcLAd" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-psychological-line-psy-indicator-in-trading-443492945687418880" style="font-size: 16px;">How to Use the Psychological Line (PSY) Indicator in Trading: A Complete Beginner's Guide</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusKoGIaSSBgnENnqrrAaCMVC" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-cr-energy-index-in-trading-441192234786152448" data-lark-is-custom="true" style="font-size: 16px;">How to Use the CR Energy Index in Trading: A Complete Beginner's Guide</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusqJIHwX2DLdGZHPZH7RB4se" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-volume-ratio-vr-indicator-in-trading-443362198292994048" data-lark-is-custom="true" style="font-size: 16px;">How to Use Volume Ratio (VR) Indicator in Trading: A Complete Beginner's Guide</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxus6NNL14irKESUs5AC90ZsIc" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-commodity-channel-index-cci-in-trading-436075700375966720" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Commodity Channel Index (CCI) in Trading: A Complete Beginner's Guide</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusZlGcTJhmVCOcW44yxx9csf" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-directional-movement-index-dmi-in-trading-437460810149061632" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Directional Movement Index (DMI) in Trading: A Complete Beginner's Guide</a></div></li></ul><div style="text-align:left" class="ace-line ace-line old-record-id-doxusRHrPH14YYq3FsflyhzqrTh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxushs78jJaAVbKM8xNG9kub6e"><span style="font-size: 16px;"><strong>Risk Warning: </strong>Technical indicators are based on historical data and do not guarantee future performance. Digital assets are highly volatile. Trade cautiously based on your risk tolerance and avoid blindly following market trends.</span></div></div>
MEXC Policy on Handling Abnormal Trading Behavior
<div><h2><span style="font-family:'arial' , 'helvetica' , sans-serif"><strong style="font-weight:bolder">1. Overview</strong></span></h2><div> </div><div><span style="font-size:16px"><span style="font-family:'arial' , 'helvetica' , sans-serif">To regulate trading activities, maintain market functioning, and ensure fairness, MEXC monitors trading activity to identify and address irregular behavior. When abnormal trading behavior is identified, MEXC may initiate procedures for handling abnormal trading and take corresponding management measures against the users involved.</span></span></div><div> </div><h2><span style="font-family:'arial' , 'helvetica' , sans-serif"><strong style="font-weight:bolder">2. Identification of Abnormal Trading Behavior</strong></span></h2><div> </div><div><span style="font-size:16px"><span style="font-family:'arial' , 'helvetica' , sans-serif">A user's activity will be deemed abnormal trading behavior under any of the following circumstances:</span></span></div><div> </div><div><span style="font-size:16px"><span style="font-family:'arial' , 'helvetica' , sans-serif">1) Engaging in repeated self-trading (buying and selling with oneself) or transactions between accounts under the same beneficial control, acting as counterparties multiple times (self-matching). This includes, but is not limited to, abnormal behavior such as identical or related sources of funds across one or more accounts, identical IP addresses, or synchronized trading patterns; accounts under the same actual control using wash trading or matched trades to manipulate market prices; or repeated counterparty transactions between customers within one or more accounts under common control.</span></span></div><div> </div><div><span style="font-size:16px"><span style="font-family:'arial' , 'helvetica' , sans-serif">2) Frequent intraday order placement and cancellation that may affect trading prices or mislead other market participants (frequent order placement and cancellation).</span></span></div><div> </div><div><span style="font-size:16px"><span style="font-family:'arial' , 'helvetica' , sans-serif">3) Multiple intraday large-order placements and cancellations that may affect trading prices or mislead other market participants (large-order placement and cancellation).</span></span></div><div> </div><div><span style="font-size:16px"><span style="font-family:'arial' , 'helvetica' , sans-serif">4) The number of opened trades in a single day for a specific trading product (including but not limited to MEXC Futures or Spot) exceeds the intraday trading limits set by the exchange.</span></span></div><div> </div><div><span style="font-size:16px"><span style="font-family:'arial' , 'helvetica' , sans-serif">5) Using algorithmic trading methods to place orders in a way that may affect the security of MEXC's systems or the normal trading order.</span></span></div><div> </div><div><span style="font-size:16px"><span style="font-family:'arial' , 'helvetica' , sans-serif">6) Trading behavior carried out with dishonest intent: Where MEXC reasonably determines that there may be suspected or actual market manipulation and/or market abuse, including but not limited to the following:</span></span></div><ul style="list-style-type:disc" start="1"><li style="text-align:left"><div><span style="font-size:16px"><span style="font-family:'arial' , 'helvetica' , sans-serif">Conducting trades at executable prices that significantly deviate from current market prices to secure unfair profit.</span></span></div></li><li style="text-align:left"><div><span style="font-size:16px"><span style="font-family:'arial' , 'helvetica' , sans-serif">Deliberately influencing market prices or market depth by other means for the purpose of manipulation.</span></span></div></li><li style="text-align:left"><div><span style="font-size:16px"><span style="font-family:'arial' , 'helvetica' , sans-serif">Exploiting MEXC's pricing mechanisms or other system vulnerabilities for improper gain.</span></span></div></li><li style="text-align:left"><div><span style="font-size:16px"><span style="font-family:'arial' , 'helvetica' , sans-serif">Engaging in abnormal wash trading to create a false appearance of market activity or distort market behavior for improper gain.</span></span></div></li></ul><div> </div><div><span style="font-size:16px"><span style="font-family:'arial' , 'helvetica' , sans-serif">7) Coordinated multi-account activity: Where two or more accounts are under common control or highly related, and by synchronizing or coordinating their trading behavior, may constitute market manipulation or abuse. In such cases, MEXC may assess and handle the activity collectively based on comprehensive evidence.</span></span></div><div> </div><div><span style="font-size:16px"><span style="font-family:'arial' , 'helvetica' , sans-serif">8) Any other circumstances as determined by MEXC.</span></span></div><div> </div><h2><span style="font-family:'arial' , 'helvetica' , sans-serif"><strong style="font-weight:bolder">3. Handling of Abnormal Trading Behavior</strong></span></h2><div> </div><div><span style="font-size:16px"><span style="font-family:'arial' , 'helvetica' , sans-serif">To safeguard the integrity of trading on MEXC, if a user engages in any of the abnormal trading behaviors listed above, MEXC may, without prior notice, take the following measures against the account:</span></span></div><div style="text-align:left"><span style="font-size:16px"><span style="font-family:'arial' , 'helvetica' , sans-serif">1) Require the user to provide a report on their trading activity.</span></span></div><div style="text-align:left"><span style="font-size:16px"><span style="font-family:'arial' , 'helvetica' , sans-serif">2) Restrict, suspend, or terminate the user’s access to the </span></span><a href="https://www.mexc.com/"><span style="font-size:16px"><span style="font-family:'arial' , 'helvetica' , sans-serif">MEXC website</span></span></a><span style="font-size:16px"><span style="font-family:'arial' , 'helvetica' , sans-serif">.</span></span></div><div style="text-align:left"><span style="font-size:16px"><span style="font-family:'arial' , 'helvetica' , sans-serif">3) Restrict opening new positions, impose deadlines for position closures, or enforce liquidation.</span></span></div><div style="text-align:left"><span style="font-size:16px"><span style="font-family:'arial' , 'helvetica' , sans-serif">4) Restrict deposits and withdrawals for the account.</span></span></div><div style="text-align:left"><span style="font-size:16px"><span style="font-family:'arial' , 'helvetica' , sans-serif">5) Close the account and confiscate any remaining assets.</span></span></div><div style="text-align:left"><span style="font-size:16px"><span style="font-family:'arial' , 'helvetica' , sans-serif">6) Take any other measures permitted under the exchange's business rules.</span></span></div><div> </div><h2><span style="font-family:'arial' , 'helvetica' , sans-serif"><strong style="font-weight:bolder">4. Disclaimer of Liability</strong></span></h2><div> </div><div><span style="font-size:16px"><span style="font-family:'arial' , 'helvetica' , sans-serif">Users participating in trading on MEXC must comply with applicable laws, regulations, and the business rules of the exchange, and are subject to MEXC's oversight and monitoring of the legitimacy of their trading activities. Users are expected to regulate their own trading behavior accordingly.</span></span></div><div> </div><div><span style="font-size:16px"><span style="font-family:'arial' , 'helvetica' , sans-serif">MEXC reserves the right to pursue any fair and legally permissible remedies in response to abnormal trading behavior, including but not limited to restricting all trading activities of abnormal trading accounts. MEXC shall bear no liability for any economic losses arising from suspected violations of these rules.</span></span></div><div> </div></div>
MEXC Futures Post-Only FAQs
<div data-page-id="Z5kkd2Qn7otUpyxebPwuRg2jsHd" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-doxusR6BPvA8kHnXrYy503TJBNd"><strong>1. What is a post-only order?</strong></h2><div class="ace-line ace-line old-record-id-doxuso7NlgLrbJad5Vj5naphFLd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusblT0aRkrEzeDzJxqs8aMtb"><span style="font-size: 16px;">A "post-only" order is a type of order designed to ensure you always act as a maker. It guarantees that your order will not be executed immediately against the market. If your submitted order instantly matches with an existing one, the system will automatically cancel it.</span></div><div class="ace-line ace-line old-record-id-doxusQmE24VVGJ9lWoLV84LiZXc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusNwTYVGVaGNW5WEJIMTMg4e"><span style="font-size: 16px;">In Futures trading, a maker is a trader who places a limit order on the order book and waits for others to fill it, thereby adding liquidity to the market. In contrast, a taker is a trader who immediately executes against existing limit or market orders, thus consuming market liquidity.</span></div><div class="ace-line ace-line old-record-id-doxusNCVofGJ3KrRld2blOGcqSc"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" class="ace-line ace-line old-record-id-doxusJpUFfaut2opJqvxZIVHwld"><span style="font-size: 16px;">*BTN-<strong>Start Your Futures Journey</strong>&BTNURL=<a data-lark-is-custom="true" href="https://www.mexc.com/futures/BTC_USDT">https://www.mexc.com/futures/BTC_USDT</a>*</span></div><div class="ace-line ace-line old-record-id-doxusBc2N8X7mUczOplYeGFondd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxus9eoZh4L7IggcFNARoTdbFu"><strong>2. What are the advantages of post-only?</strong></h2><div class="ace-line ace-line old-record-id-doxuswxXJHrkyzyCqwaOygofd8s"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusNksOdPWjEwOkEdO6Fcw97d"><span style="font-size: 16px;">The core advantage of using post-only is the fee discount. In MEXC Futures trading, the fee rate for maker orders is significantly lower than for taker orders. This can substantially reduce trading costs for users who trade frequently.</span></div><div class="ace-line ace-line old-record-id-doxusRVTGeTuJLUXzI94JvqcpUe"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" class="ace-line ace-line old-record-id-doxus0GX2Cy2NBT4mXBhEqfLAee"><span style="font-size: 16px;">*BTN-<strong>View Fee Rates</strong>&BTNURL=<a data-lark-is-custom="true" href="https://www.mexc.com/fee">https://www.mexc.com/fee</a>* </span></div><div class="ace-line ace-line old-record-id-doxuskkAQQguxAnPwnkX8Qn1Hpb"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusHBptz7ZeSUWHHcaSORMwHb"><strong>3. What are the disadvantages of post-only?</strong></h2><div class="ace-line ace-line old-record-id-doxus5UnOliyWgPdpJFzrFD0Ykh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusctdUEhWP0PlW7WMGWxvsRf"><span style="font-size: 16px;">The main disadvantage of post-only is that immediate execution is not guaranteed. Since these orders are placed on the book to wait rather than aggressively taking liquidity, your order might miss trading opportunities if the market moves quickly and the price never reaches your level. Additionally, post-only may not be the best choice when you need to close a position urgently.</span></div><div class="ace-line ace-line old-record-id-doxusVT0IkJyrrdQ2GkScRM3WJd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusb7wzA3NXCRusuV4CrJPpJb"><strong>4. Why was my post-only order automatically canceled?</strong></h2><div class="ace-line ace-line old-record-id-doxusJ6XUrNV9LV4T945g6lJ9bg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusy7m1pETH1wOOHhQu65KEC6"><span style="font-size: 16px;">Orders are typically auto-canceled for the following reasons: </span></div><div class="ace-line ace-line old-record-id-doxusOomeW5Ulu5jUf478zSGsFf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusFoJCtmPOLubpdz2Es47veh"><span style="font-size: 16px;">If your buy price is set higher than the current best ask, or your sell price is lower than the current best bid, the order will be executed immediately, making you a taker. To adhere to the post-only principle, the system automatically cancels such orders. For example, if the current BTC market price is 40,000 USDT and you place a buy order at 41,000 USDT, the order will be immediately canceled to ensure you remain a maker.</span></div><div class="ace-line ace-line old-record-id-doxusa7BPcMZ0FFNx4YYj2YKDge"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusuRez2LhptJAHDpxZU3zbRe"><span style="font-size: 16px;">Another scenario is when the price meets the criteria at the moment of submission, but significant market volatility occurs before the order reaches the matching engine, causing it to become a taker order. In this case, it will also be canceled. </span></div><div class="ace-line ace-line old-record-id-doxusnOj7IgRSwnCSTr9Ndk3yYb"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxuswUYjQ9rfUwosuYNyM45WqW"><strong>5. Does using post-only guarantee a maker fee rate 100% of the time?</strong></h2><div class="ace-line ace-line old-record-id-doxusbSWHtbYqMsQ5fDfj3tuKnb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusiibYdMWFQWJTKExXKXya4e"><span style="font-size: 16px;">In principle, yes, but it does not guarantee execution. The purpose of post-only is to prevent your order from executing as a taker. However, this is not the same as guaranteeing that your order will be filled. If the limit price you set deviates too much from the current market price, your order may remain on the order book for an extended period without executing, posing a risk of missing trading opportunities.</span></div><div class="ace-line ace-line old-record-id-doxusZUWKHaeEDSm3a42LLAt2gf"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusf3ZrUqofBy5ePVhSbNZSwd"><strong>6. Can post-only be used to close a position?</strong></h2><div class="ace-line ace-line old-record-id-doxusTAhfRdkHD9ELvU97tqNUeg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusoqMgJAZLshRMBlemXJgVNg"><span style="font-size: 16px;">Yes, but it should be used with caution. Using post-only to close a position still follows the rule of no immediate execution. During rapid market volatility, if the order can't get filled at your desired limit price, your position may face increased risk. Therefore, in scenarios requiring urgent stop-losses, using the post-only function is not recommended.</span></div><div class="ace-line ace-line old-record-id-doxusoVUZiUFhn0Kr5lvDNsvlme"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxus9H14LUEiglsGqqKZxD6mid"><strong>7. How to set up a post-only order on MEXC</strong></h2><div class="ace-line ace-line old-record-id-doxusOrgg8j7e6lzkA4K3dPDs1d"><span style="font-size: 16px;"><p><video controls="" playsinline="" preload="metadata" src="https://customer-article.mocortech.com/publicVideo/F20260824160245073aBJt0EMjhZSnQc.mp4" style="max-width:100%;height:auto;float:none"></video></p></span></div><div class="ace-line ace-line old-record-id-doxusLTgM4JWOPVyVRSt4ULUrkb"><span style="font-size: 16px;"><strong>Web: </strong>Navigate to the <a data-lark-is-custom="true" href="https://www.mexc.com/futures/BTC_USDT">Futures trading page</a>, select <strong>Post-Only</strong>, enter the <strong>Price </strong>and <strong>Quantity</strong>, configure <strong>TP/SL</strong>, and then click <strong>Open Long</strong> or <strong>Open Short</strong>.</span></div><div class="ace-line ace-line old-record-id-doxus9rvzmdNvmitvIlPprJV0H1"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{"items":[{"uuid":"42b59884-3108-430a-8204-019a8e8f787c","height":1468,"width":2938,"currHeight":1468,"currWidth":2938,"natrualHeight":1468,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FP7OEbkqmbo3re3xSKswuwIlEsQa%2F%3Fpreview_type%3D16","file_token":"P7OEbkqmbo3re3xSKswuwIlEsQa","image_type":"image/png","size":1020954,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxusFgdxRv3pF9rVCRt7bbYuWe"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F202603061721253440guaL3KDK8Cnuc.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJQN09FYmtxbWJvM3JlM3hTS3N3dXdJbEVzUWEiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94dXNGZ2R4UnYzcEY5clZDUnQ3YmJZdVdlIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9QN09FYmtxbWJvM3JlM3hTS3N3dXdJbEVzUWEvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/P7OEbkqmbo3re3xSKswuwIlEsQa/?mount_node_token=doxusFgdxRv3pF9rVCRt7bbYuWe&mount_point=docx_image" data-width="2938" data-height="1468" data-lark-image-uri="drivetoken://P7OEbkqmbo3re3xSKswuwIlEsQa" data-lark-image-width="2938" data-lark-image-height="1468" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px; width: 750px;"></div><div class="ace-line ace-line old-record-id-doxus6wog1f0XCgadB0FR7aokug"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus4GdYs6fgbhB0U1ykQGKSKe"><span style="font-size: 16px;"><strong>App: </strong>Navigate to the Futures trading page, select <strong>Post-Only</strong>, enter the <strong>Price </strong>and <strong>Quantity</strong>, configure <strong>TP/SL</strong>, and then tap <strong>Open Long</strong> or <strong>Open Short</strong>.</span></div><div class="ace-line ace-line old-record-id-doxusOg7DFgYF1wrxCzsSuvHF4j"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{"items":[{"uuid":"45323509-1e7f-480a-a8b1-651744fe643f","height":2159,"width":3129,"currHeight":2159,"currWidth":3129,"natrualHeight":2159,"natrualWidth":3129,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FSJaJbS2uQoXYv3xfAwzuskSDsBf%2F%3Fpreview_type%3D16","file_token":"SJaJbS2uQoXYv3xfAwzuskSDsBf","image_type":"image/png","size":1752226,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxus4Jz7dPQwx3IndYzUbLKQMg"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260306172126587gfPKSyyDQqNx09.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJTSmFKYlMydVFvWFl2M3hmQXd6dXNrU0RzQmYiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94dXM0Sno3ZFBRd3gzSW5kWXpVYkxLUU1nIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9TSmFKYlMydVFvWFl2M3hmQXd6dXNrU0RzQmYvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/SJaJbS2uQoXYv3xfAwzuskSDsBf/?mount_node_token=doxus4Jz7dPQwx3IndYzUbLKQMg&mount_point=docx_image" data-width="3129" data-height="2159" data-lark-image-uri="drivetoken://SJaJbS2uQoXYv3xfAwzuskSDsBf" data-lark-image-width="3129" data-lark-image-height="2159" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px; width: 750px;"></div><div class="ace-line ace-line old-record-id-doxus0pjLyyuk7FrCLoVa7DNOLe"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxus3Wh07r2I2hgI1HdHA4O8CA"><strong>8. What are some common mistakes when using post-only?</strong></h2><div class="ace-line ace-line old-record-id-doxus2ZgNN21DOp5SQ87z15j0vb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusYcyPth7bHb2X1bm9IQQhff"><span style="font-size: 16px;">A frequent error is using post-only when speed is the priority. This order type is designed for traders willing to wait for a fill in exchange for lower fees. If you need to buy or sell immediately, you should use a standard limit order (without post-only) or a market order instead.</span></div><div class="ace-line ace-line old-record-id-doxuscBE7I2BoJxQnbcfX0H3IOf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusdX5OJFJlyWQnwgK5bM2Sze"><span style="font-size: 16px;">Another common mistake is relying on post-only for urgent stop-loss scenarios. During sharp price drops or spikes, a post-only stop order may be automatically canceled or fail to execute immediately if the market price gaps past your limit. This can lead to significantly larger losses than intended.</span></div><div class="ace-line ace-line old-record-id-doxus9N8HAOBqg7OaKUTOExjEpo"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusqjPvCTkYYkeNXdWixIvKvf"><strong>9. In Conclusion</strong></h2><div class="ace-line ace-line old-record-id-doxuscBHBL2ZvfyRRAgdH7u1Lhg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusFKwaIsdLYqwik8hOzFzDPd"><span style="font-size: 16px;">Post-only is an order mode designed by MEXC to help traders reduce transaction fees. When using it, ensure your limit price is set at a sufficient distance from the current market price to avoid being flagged for immediate execution, which would trigger an automatic cancellation. For users who prioritize low trading costs and are not in a rush to execute, post-only is a practical and valuable tool to master.</span></div><div class="ace-line ace-line old-record-id-doxusI35cisRGgWVSRFCU0VRRxf"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusdVLROC5kMmjvvbIgHtrB9c"><span style="font-size: 16px;">Recommended Reading</span></h3><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-doxusBCZNPUG2h2a8ZVJWZo63We" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/mexc-futures-limit-order-faqs-318919712778827776">MEXC Futures Limit Order FAQs</a></span></div></li><li class="ace-line ace-line old-record-id-doxusuVgzUPj1PuIYlW15xE6Amh" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/mexc-futures-market-order-faqs-318921954751756288">MEXC Futures Market Order FAQs</a></span></div></li><li class="ace-line ace-line old-record-id-doxusE8q6GOS56VQpi3aumn5yz6" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/mexc-futures-chase-limit-order-faqs-318923114392927232">MEXC Futures Chase Limit Order FAQs</a></span></div></li><li class="ace-line ace-line old-record-id-doxusFL3ih3lOf9k09jJtxk9rtb" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/mexc-futures-trigger-order-faqs-318924677761021952">MEXC Futures Trigger Order FAQs</a></span></div></li><li class="ace-line ace-line old-record-id-doxusQs9eQ096bmJlhbqT5S9YYd" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/mexc-futures-trailing-stop-order-faqs-318927297691072512">MEXC Futures Trailing Stop Order FAQs</a></span></div></li></ul></div>
How to Use the Psychological Line (PSY) Indicator in Trading: A Complete Beginner's Guide
<div data-page-id="JXEVde5Z7oSGpYxsCwzuyBlHsXg" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-OgDYd2ZVloZCavxwTIZuSJexsXc"><strong>Key Takeaways:</strong></h2><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-KrzWd82h2oRZLaxBw2HulwI6sJf" data-list="bullet"><div><span style="font-size: 16px;">Psychological Line (PSY) is a momentum-based technical indicator that measures market sentiment between buyers and sellers, with values ranging from 0 to 100.</span></div></li><li class="ace-line ace-line old-record-id-XVyld83fnoiNR2xhxHeuKaMGsAe" data-list="bullet"><div><span style="font-size: 16px;">PSY calculates the percentage of price-increasing periods within a specific timeframe to identify potential overbought and oversold conditions.</span></div></li><li class="ace-line ace-line old-record-id-FwaXdQ4q1o4kRQxpFXduNL0KsHf" data-list="bullet"><div><span style="font-size: 16px;">A PSY value above 75 is generally considered overbought, while a value below 25 indicates oversold conditions. The 50 level represents a balance between buying and selling pressure.</span></div></li><li class="ace-line ace-line old-record-id-CTNmdps2JoFhLpxRbSkuWRI1sNf" data-list="bullet"><div><span style="font-size: 16px;">PSY should not be used alone. Traders are advised to combine it with other indicators, such as RSI and Moving Average, to confirm signals.</span></div></li><li class="ace-line ace-line old-record-id-OmBHdcC1NoC5tcxnt9Ku2VY2sXe" data-list="bullet"><div><span style="font-size: 16px;">MEXC users can add the PSY indicator to candlestick charts to support crypto trading decisions.</span></div></li></ul><div class="ace-line ace-line old-record-id-IYiOdj4HRoqtAixpeOfuacUVs4b"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-NHJid5dIloBCytxstLiuK0J1swh"><strong>1. What Is Psychological Line (PSY)?</strong></h2><div class="ace-line ace-line old-record-id-WUjIdWFfwoGlEoxOAtSuVT0Gswc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-UDZsdItprowYeixzpvcuwTmJs2d"><span style="font-size: 16px;">Psychological Line (PSY) is a sentiment-based technical indicator that measures market optimism and pessimism over a specific period.</span></div><div class="ace-line ace-line old-record-id-CwXcd0t85oQjs9x3FqUuUwhjsC1"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-V6uadURp9ooA6TxNtveusEemsZe"><span style="font-size: 16px;">When prices continue rising, traders may become increasingly optimistic or even overly confident. When prices continue falling, market sentiment may become more negative or fearful.</span></div><div class="ace-line ace-line old-record-id-M9bUdTuXAoc2oXx0sbVuuYdGsAh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-V9KrdYHyGosZp1x4YyHuixNXsDd"><span style="font-size: 16px;">PSY quantifies market sentiment by calculating the percentage of rising periods within a given timeframe. Its value ranges from 0 to 100:</span></div><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-RNaFdB1zGoyfs2xGhASu0gUhsfD" data-list="bullet"><div><span style="font-size: 16px;"> A value of 100 means all periods recorded price increases. </span></div></li><li class="ace-line ace-line old-record-id-Jc8adAnafoYdoKxwydEuS3bEsHc" data-list="bullet"><div><span style="font-size: 16px;"> A value of 0 means all periods recorded price declines. </span></div></li><li class="ace-line ace-line old-record-id-RERbdjTebo2xQrxqVztudsJRsUf" data-list="bullet"><div><span style="font-size: 16px;"> A value of 50 means rising and declining periods are evenly balanced. </span></div></li></ul><div class="ace-line ace-line old-record-id-QT9ndTYPIomJnGxOP1Su2YZusOb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-OI4VdGO3Vo5TbaxyNEgulXpWssf"><span style="font-size: 16px;">In crypto markets, where price movements are often highly volatile and sentiment-driven, PSY can provide useful references for identifying potentially overheated or oversold market conditions. <a data-lark-is-custom="true" href="https://www.mexc.com/">MEXC</a>'s charting tools allow users to directly add the PSY indicator for market analysis.</span></div><div class="ace-line ace-line old-record-id-JmDDdreIqoEolgx8oEduk8XusYd"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{"items":[{"uuid":"88717fca-efc1-4da2-912c-cd5f066fad55","height":1478,"width":2938,"currHeight":1478,"currWidth":2938,"natrualHeight":1478,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FTfo6boMBMo2aC9xV4VOuQzcesjg%2F%3Fpreview_type%3D16","file_token":"Tfo6boMBMo2aC9xV4VOuQzcesjg","image_type":"image/png","size":254538,"comments":[]}]}" class="image-uploaded gallery old-record-id-T9codCb6goHhU2xu1wQuTbgQs7e"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260821132906434gz4dKbH4hNvDPL.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJUZm82Ym9NQk1vMmFDOXhWNFZPdVF6Y2VzamciLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiVDljb2RDYjZnb0hoVTJ4dTF3UXVUYmdRczdlIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9UZm82Ym9NQk1vMmFDOXhWNFZPdVF6Y2VzamcvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/Tfo6boMBMo2aC9xV4VOuQzcesjg/?mount_node_token=T9codCb6goHhU2xu1wQuTbgQs7e&mount_point=docx_image" data-width="2938" data-height="1478" data-lark-image-uri="drivetoken://Tfo6boMBMo2aC9xV4VOuQzcesjg" data-lark-image-width="2938" data-lark-image-height="1478" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-NGWQdMVi6o2IabxLosVuUa9Iswf"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-GAfCd2aqGo88aRxFt5QuQjXJs1g"><strong>2. How To Interpret PSY Values</strong></h2><div class="ace-line ace-line old-record-id-ReB3dhodkoKC6bxMXiquOgJUs2b"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-CHHodajKyokVuLxnmOtumQ8dswb"><strong style="font-size: 16px;">Overbought and Oversold Levels:</strong></div><div class="ace-line ace-line old-record-id-Pvf0djhbWot9JIxJX9FunufKsOe"><span style="font-size: 16px;">When PSY rises above 75, it suggests that the market has experienced too many consecutive price increases and investor sentiment may have become overly optimistic. This may indicate overbought conditions and a higher possibility of a pullback.</span></div><div class="ace-line ace-line old-record-id-BKnadkYNzoA7B2xvyiAuLQTmsLe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Q4Tudkt6ao5O48xgz64uhl64sWh"><span style="font-size: 16px;">When PSY falls below 25, it suggests excessive pessimism and possible oversold conditions, where a rebound may become more likely.</span></div><div class="ace-line ace-line old-record-id-Fm98decouowSBBxCxjhuVRd9sBn"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-F9Uzdy7Qnol6jXxAV8qurMozsPg"><span style="font-size: 16px;">Extreme readings above 90 or below 10 may indicate that market sentiment has reached an excessive level and a potential reversal could be approaching.</span></div><div class="ace-line ace-line old-record-id-JoesdXmbboXDe6xRhw8uxn70sxc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-WfHzdDkbFoKkn8xwvT9uPmUZsvb"><strong style="font-size: 16px;">The Significance of the 50 Level:</strong></div><div class="ace-line ace-line old-record-id-UZAOdKyR5ojp5Hxqs0zu8M9DsKd"><span style="font-size: 16px;">A move above 50 from below may indicate strengthening buying momentum.</span></div><div class="ace-line ace-line old-record-id-NhDhd5Dexo078NxaaYNuilyDsKo"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-XsNyd3PkOoTv9XxPlgdugmrBsde"><span style="font-size: 16px;">A drop below 50 from above may suggest increasing selling pressure.</span></div><div class="ace-line ace-line old-record-id-BaA0dDTPoot3iqx0XJVueUf2szd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-UaN2dAi0ToH8ZOxumFVuv7DXsCy"><span style="font-size: 16px;">When PSY remains above 50 for an extended period, buyers may be dominating the market. When it stays below 50, sellers may have greater control.</span></div><div class="ace-line ace-line old-record-id-VMHpdI0qFocZfIxD8t9uskSAsBh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-IGHGdgoNgoSiMvxATeYuEuuXssf"><strong style="font-size: 16px;">Divergence Signals:</strong></div><div class="ace-line ace-line old-record-id-KR9ddKm6eonRdQx3Ri8uI10tsFh"><span style="font-size: 16px;">PSY divergence occurs when price movements and the indicator move in different directions.</span></div><div class="ace-line ace-line old-record-id-ABKedjfxSo1TH6x3upFu7ZQisSg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Uq9kdkkT9omgfEx4ODFu6Lz8sJe"><span style="font-size: 16px;">When price reaches a new high but PSY fails to rise accordingly, it may indicate weakening upward momentum and a potential reversal risk. When price reaches a new low but PSY starts recovering, it may suggest that selling pressure is weakening and a potential bottom may be forming. </span></div><div class="ace-line ace-line old-record-id-Sd19d3yxUoyPYsxJHTTuQvmHseb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Aw2bdafexo2akcxEEu0unGi0sNh"><span style="font-size: 16px;">Divergence is one of the key signals traders can monitor when using PSY.</span></div><div class="ace-line ace-line old-record-id-UId9dOwy5oNog1xaRtcuKM83sRe"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-XJL4dtTJloCbEqxGghkuKodRscM"><strong>3. How To Use PSY in Trading</strong></h2><div class="ace-line ace-line old-record-id-Atrydu83ToqODGxXaYAu8inmsce"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-VSogdA8CjogytjxEPJJulAcnsac"><strong style="font-size: 16px;">1) Use PSY as a Sentiment Filter</strong></div><div class="ace-line ace-line old-record-id-XAzHdb1bJoPMxuxoThMu4Vm3sgc"><span style="font-size: 16px;">In an uptrend, when PSY falls below 25 and enters oversold area, traders can combine price action signals to look for potential entry opportunities after a pullback.</span></div><div class="ace-line ace-line old-record-id-RF5VdZzHTokWh8xjKgvu9rWjsXg"><span style="font-size: 16px;">In a downtrend, when PSY rises above 75, traders can monitor potential short opportunities or consider reducing exposure.</span></div><div class="ace-line ace-line old-record-id-JIv8dZUGjoZ82jxEQ4kusjhIswg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-FO9KdnnYsolOzNxgIquuBIHQs4f"><strong style="font-size: 16px;">2) Combine PSY With Other Indicators</strong></div><div class="ace-line ace-line old-record-id-BB9WdyoOGo8w2lxkRdbuL7xSs2b"><span style="font-size: 16px;">PSY only measures the ratio of rising and declining periods and does not reflect the size of price changes.</span></div><div class="ace-line ace-line old-record-id-R6abdVP3mol2WMxk2wpu1k4RsJe"><span style="font-size: 16px;">To improve signal reliability, traders can combine PSY with other technical indicators, such as <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-relative-strength-index-rsi-in-trading-425570029981283328">RSI</a>, <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-macd-indicator-in-trading-426304203100942336">MACD</a>, and <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-moving-average-of-volume-in-trading-421863713722995712">volume</a> indicators.</span></div><div class="ace-line ace-line old-record-id-G5mSdI36QoKRoOx8IV2uZZRHs0c"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-HvLIdQ1WxoNZtZxXmMUuduwQsnh"><strong style="font-size: 16px;">3) Wait for Confirmation After Extreme Readings</strong></div><div class="ace-line ace-line old-record-id-WL5BdEQ1ToIrkjx6U1OuMNXAssg"><span style="font-size: 16px;">Traders should avoid immediately taking a reversal position when PSY first enters overbought or oversold area.</span></div><div class="ace-line ace-line old-record-id-VZVjdKfewoL4Njx3krTufc6js3q"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-OnPIdKlztocyT0xTjQjuOVMVsGc"><span style="font-size: 16px;">Instead, wait for PSY to move back from extreme levels and confirm the reversal with other signals to avoid entering too early against a strong trend.</span></div><div class="ace-line ace-line old-record-id-FBiFd3EJ8o7oJBxePLGuv7xLsac"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Xx1HdmCTxoScfYxu4yXuefPQsOe"><span style="font-size: 16px;">MEXC users can add PSY from the indicator list on any trading pair's chart and adjust parameters based on their trading timeframe.</span></div><div class="ace-line ace-line old-record-id-C3DKdBrykoBqlFxhmPiukFoKsre"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" class="ace-line ace-line old-record-id-OrNmduefGo0KXjxpGAJu0a4Wswg"><span style="font-size: 16px;">*BTN-<strong>Trade Futures</strong>&BTNURL=<u><a data-lark-is-custom="true" href="https://www.mexc.com/futures/BTC_USDT">https://www.mexc.com/futures/BTC_USDT</a></u>*</span></div><div class="ace-line ace-line old-record-id-YO8NdQBW7oviMRxPzpduNIm6src"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{"items":[{"uuid":"59beac06-4ffe-4c6a-9a99-b468e1c3bfcf","height":1384,"width":2936,"currHeight":1384,"currWidth":2936,"natrualHeight":1384,"natrualWidth":2936,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FFBZpbYpv0o9Do9xk43uumCtXsKb%2F%3Fpreview_type%3D16","file_token":"FBZpbYpv0o9Do9xk43uumCtXsKb","image_type":"image/png","size":466897,"comments":[]}]}" class="image-uploaded gallery old-record-id-WDpxdtJO4o6zU5xF969uOrKwsrc"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260821132905821dDytKyCeLGZWYK.png" data-single-block="true" data-snapshot="eyJ0eXBlIjoiaW1hZ2UiLCJwYXJlbnRfaWQiOiJKWEVWZGU1WjdvU0dwWXhzQ3d6dXlCbEhzWGciLCJjb21tZW50cyI6W10sInJldmlzaW9ucyI6W10sImxvY2tlZCI6ZmFsc2UsImhpZGRlbiI6ZmFsc2UsImF1dGhvciI6Ijc2MjgxMjg1OTY1NDQwMTU3OTgiLCJhbGlnbiI6ImNlbnRlciIsImltYWdlIjp7InRva2VuIjoiRkJacGJZcHYwbzlEbzl4azQzdXVtQ3RYc0tiIiwibWltZVR5cGUiOiJpbWFnZS9wbmciLCJzaXplIjo0NjY4OTcsInNjYWxlIjoxLCJ3aWR0aCI6MjkzNiwiaGVpZ2h0IjoxMzg0LCJuYW1lIjoiaW1hZ2UucG5nIiwiY3JvcCI6WzAsMCwwLDBdLCJyb3RhdGlvbiI6MCwiY2FwdGlvbiI6eyJ0ZXh0Ijp7ImFwb29sIjp7Im5leHROdW0iOjAsIm51bVRvQXR0cmliIjpudWxsfSwiaW5pdGlhbEF0dHJpYnV0ZWRUZXh0cyI6eyJhdHRyaWJzIjpudWxsLCJ0ZXh0IjpudWxsfX19fSwiYXJlYV9jb21tZW50cyI6e319" data-suite="eyJmaWxlVG9rZW4iOiJGQlpwYllwdjBvOURvOXhrNDN1dW1DdFhzS2IiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiV0RweGR0Sk80bzZ6VTV4Rjk2OXVPckt3c3JjIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9GQlpwYllwdjBvOURvOXhrNDN1dW1DdFhzS2IvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/FBZpbYpv0o9Do9xk43uumCtXsKb/?mount_node_token=WDpxdtJO4o6zU5xF969uOrKwsrc&mount_point=docx_image" data-width="2936" data-height="1384" data-lark-image-uri="drivetoken://FBZpbYpv0o9Do9xk43uumCtXsKb" data-lark-image-width="2936" data-lark-image-height="1384" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-SAtvdVlrxosZ7lx8o8CuJs6ysca"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-O1ihdCoMxoKAYexqnbIu5NXLsmR"><strong>4. Things To Consider When Using PSY</strong></h2><div class="ace-line ace-line old-record-id-GJbAdTYQAotxnIxRmZPu2DxMsld"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-UzMJdSbggoQfEExH6QQuurEbsUg"><span style="font-size: 16px;">PSY is a relatively simple indicator that only measures the ratio of rising and declining periods without considering the magnitude of price changes.</span></div><div class="ace-line ace-line old-record-id-LIH0dD1aTof1dTxQjN6u1NVWsHe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-KkDHd4Kbqoy46qxOLHXuguU9sXe"><span style="font-size: 16px;">As a result, it may react slowly during sharp price movements.</span></div><div class="ace-line ace-line old-record-id-U0eadIkpSoXuxwxRBVsu8e6Gs1d"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-IamJdcJ7JohjJ3xB48fugZh3sbf"><span style="font-size: 16px;">PSY does not provide direct buy or sell signals and should only be used to evaluate market sentiment and potential overbought or oversold conditions.</span></div><div class="ace-line ace-line old-record-id-WIdid7Q2SobFKlxzezEuZ20hs9b"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Pj25dREZyoh5L1xq8CvuyzW2s3f"><span style="font-size: 16px;">Traders should combine PSY with market trends, price action, volume analysis, and proper risk management. Position sizing and risk control remain essential parts of any trading strategy.</span></div><div class="ace-line ace-line old-record-id-WnQRdO6kGo21RqxguCoujoLRsl2"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-NJXndy5K5o7Pysx3MOWuAn5psMb"><strong>5. PSY FAQ</strong></h2><div class="ace-line ace-line old-record-id-Ao6gdxLhAoLmENx5ZvpuEyaNsxd"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-RC1Cd3hZjockLtx2HftuYNmxshd"><strong style="font-size: 16px;">5.1 How can I use PSY in trading?</strong></h3><div class="ace-line ace-line old-record-id-Lz5VdoYUGo5iIBxJzDnuL2bxspb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Owb7dxAodoPVtXxJanuuQowzsP4"><span style="font-size: 16px;">After adding PSY to the candlestick chart, monitor key levels such as:</span></div><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-FgcWdkhbfo8MOcx1gnnumdy6s4e" data-list="bullet"><div><span style="font-size: 16px;"> Above 75: Potential overbought conditions </span></div></li><li class="ace-line ace-line old-record-id-LY1NdwBNnosaU9xe7Jxu23Uaszd" data-list="bullet"><div><span style="font-size: 16px;"> Below 25: Potential oversold conditions </span></div></li><li class="ace-line ace-line old-record-id-HTcUdKufuohukixm0hrujm46snf" data-list="bullet"><div><span style="font-size: 16px;"> Crosses of the 50 level: Changes in market sentiment </span></div></li></ul><div class="ace-line ace-line old-record-id-XBdadVi0boWcrzxNYkauvrz0sBe"><span style="font-size: 16px;">Always confirm signals with price patterns and other indicators before making trading decisions.</span></div><div class="ace-line ace-line old-record-id-OBe5dKdYGofRlmxWwXru98fUscd"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-N1vAdsyuqoKjIMxaotAuSv5Cspg"><strong style="font-size: 16px;">5.2 What does PSY represent?</strong></h3><div class="ace-line ace-line old-record-id-HQt6dhm0Uo6WrfxKCAJuJPs8scc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-VuPVdDTxmoqbnqx7cQruuqTWsHT"><span style="font-size: 16px;">PSY represents the percentage of price-increasing periods within a specific timeframe. It measures market sentiment and reflects the relative strength between buyers and sellers.</span></div><div class="ace-line ace-line old-record-id-XBGedkLzbon7HbxhfWIuWvLusWc"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-XGFidoSpNoRaQXxdCsnusoOnsWb"><strong style="font-size: 16px;">5.3 What does a PSY value above 75 mean?</strong></h3><div class="ace-line ace-line old-record-id-X4HWdABdxoDJMZxB5W8uoLEMssg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-OBmwdfxihoP6FwxtOUfuP1mSssO"><span style="font-size: 16px;">A PSY value above 75 indicates that the market has experienced a high proportion of price increases recently. It suggests strong optimism and potential overbought conditions, with increased pullback risk.</span></div><div class="ace-line ace-line old-record-id-D9QbdvvfLoaaH3xnHpUuWOJ6s3g"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-Z0ppd40AJo4wTaxcuuVuQZE0std"><strong style="font-size: 16px;">5.4 Can PSY be used as the only trading signal?</strong></h3><div class="ace-line ace-line old-record-id-S6ePdwYBCoam7QxJLykujerusUh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-IqXMdhbR0omOqCxa1nku7Gkrsdg"><span style="font-size: 16px;">No. PSY only measures market sentiment and does not fully reflect price structure or market trends. It should be combined with indicators such as RSI, Moving Average, and volume analysis.</span></div><div class="ace-line ace-line old-record-id-XeIvdqvCRo1ZC2xKPOtufUBEsag"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-Jogud2vRJo1eD5xK9s9uxEzpsAh"><strong style="font-size: 16px;">5.5 Does psychology play a major role in trading?</strong></h3><div class="ace-line ace-line old-record-id-KDpjdxhDXoUc2sxBf5yuZ7wVsKg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-D4SodDMrnoXh3YxHL38u9PSes3f"><span style="font-size: 16px;">Psychology plays an important role in trading. Managing emotions and maintaining discipline can significantly affect long-term performance. However, a complete trading system and proper risk management are equally important.</span></div><div class="ace-line ace-line old-record-id-P7BzdmumDoRfdhxA1spubvNYshd"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-F61jdqQWjor3RIxx4q5u6xW2ste"><strong style="font-size: 16px;">5.6 How can I use PSY on MEXC?</strong></h3><div class="ace-line ace-line old-record-id-BIYrddUUFoGPOuxTKiHu2w5Fswf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-JV9sdKtBooZnKexfFVqubak5sdb"><span style="font-size: 16px;">Open any trading pair's chart on MEXC Spot or Futures, then add PSY from <strong>Indicators</strong>.</span></div><div class="ace-line ace-line old-record-id-Ic8kdxoxIoIXdmxWEIwupX6jsbc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-TnwpdMBb0ol9SwxEtFfu1oPUs0g"><span style="font-size: 16px;">Go to MEXC official website → Spot/<a data-lark-is-custom="true" href="https://www.mexc.com/futures/BTC_USDT">Futures</a> → Indicators → PSY</span></div><div class="ace-line ace-line old-record-id-S0SBdRkA8o7S9Exo3rIu9C4ssue"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-G9Ivd4MzuoNopox9bC1ul6D8smc"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-JpBcdKphAozc26xLH49ubgdmsOh" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-ichimoku-cloud-indicator-in-trading-416912217726086144" style="font-size: 16px;">How to Use the Ichimoku Cloud Indicator in Trading: A Complete Beginner's Guide</a></div></li><li class="ace-line ace-line old-record-id-SqwydLiwHoMcTxxuhhku6gyRsdh" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-parabolic-sar-indicator-in-trading-416910594228448256" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Parabolic SAR Indicator in Trading: A Complete Beginner's Guide</a></div></li><li class="ace-line ace-line old-record-id-JOHAdELiVoza4JxUTV0usWf7sdg" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-moving-average-indicators-in-trading-416905955663768576" data-lark-is-custom="true" style="font-size: 16px;">How to Use Moving Average Indicators in Trading: A Complete Beginner's Guide</a></div></li><li class="ace-line ace-line old-record-id-OCBCdzcQEobCH3xETgwurVIOsWb" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-bollinger-bands-in-trading-416909030860353536" data-lark-is-custom="true" style="font-size: 16px;">How to Use Bollinger Bands in Trading: A Complete Beginner's Guide</a></div></li><li class="ace-line ace-line old-record-id-QiISdj0REokitrxasm4uHvXlsyg" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-stochastic-oscillator-in-trading-427169948248728576" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Stochastic Oscillator in Trading: A Complete Beginner's Guide</a></div></li></ul><div class="ace-line ace-line old-record-id-HGBpdQHvIo5FT0xqVi8umnvyszd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-XrpDdQJmnoT193xoEBquLaGbsvh"><span style="font-size: 16px;"><strong>Risk Disclaimer: </strong>Technical indicators are calculated based on historical data and are provided for reference only. They do not guarantee future market movements. Digital asset markets are highly volatile and involve risks. Please make independent decisions based on your own risk tolerance and avoid relying solely on technical indicators when trading.</span></div></div>