1. The Hidden Logic of Funding Rates

Perpetual contracts' funding rates are not fixed; they are adjusted every 8 hours based on the comparison of market long and short forces. When the funding rate is positive, longs pay shorts; when negative, the opposite. An interesting fact is that if the funding rate remains significantly positive for a prolonged period, it often indicates overheated market sentiment and could be a short-term top signal, and vice versa.

2. The "Domino Effect" of Contract Liquidations

In extreme market conditions, mass forced liquidations can create a "liquidation waterfall." Exchanges will place orders at the best market prices to close the liquidated positions. When sell orders far exceed buy orders, the price can be instantly smashed through, even breaking your stop-loss line, leading to "slippage losses." This is why, even with stop-losses set, additional losses can occur in extreme market scenarios.

3. The "Cross-Position Sharing" Mechanism

If a forced liquidation order cannot be executed at an ideal price, resulting in losses exceeding the margin, this difference triggers "cross-position sharing." On some exchanges, all profitable users share this loss proportionally, and a small portion of your profits may be deducted to cover the shortfall.

4. The "Resonance Effect" of Time Cycles

When multiple K-line charts of different periods (such as 1-hour, 4-hour, daily) send the same buy or sell signals simultaneously, it creates "cycle resonance," which usually indicates a stronger and more sustained trend. For example, when both the 4-hour and daily charts show a golden cross, the reliability of the upward move is much higher than a single-period signal.

5. Volume Divergence Signals

Price makes a new low, but volume does not increase accordingly, known as "volume-price divergence." This suggests weakening selling momentum and can be a potential bottoming signal. Conversely, if the price hits a new high but volume diminishes, it may indicate a lack of upward strength.

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