TD Indicator Practical Combat | On-Chain Bottom Picking and Top Escaping Techniques

The indicator analysis in previous issues has received recognition from many friends, with some feedback that indicators like MACD and EMA are obviously lagging, which is not sensitive enough for retail traders who enter and exit quickly. Today, I bring you a core tool focused on left-side trading — the TD indicator, also known as the Magic Nine Turns in the community, which can help you capture market turning points earlier than most.

Our research institute has studied this indicator extensively and has built an exclusive bottom-fishing strategy based on it, which performed very well during the last bull market. However, it also has clear limitations: it is only good at bottom-fishing battles and performs limited in a sustained downward bear market with a one-sided trend.

But during the upward phase of the market, the TD indicator can achieve extreme left-side trading, outperforming most conventional strategies. Currently, the market is at the bottom range of the bear market, with downward momentum nearly exhausted. This indicator is about to return to its shining moment! Today, I will walk you through a practical breakdown to fully master how to use the TD indicator.

First, let’s understand the TD indicator, its formal name is the Dickma sequence, whose core function is to judge the exhaustion point of price trends, accurately capture market turning points, locate buy and sell zones. Domestic investors often call it the Magic Nine Turns.

The theoretical definition is too dull, so let’s look directly at the practical form. You can, like me, call up this indicator on your PC client, search for it, and load it onto the candlestick chart interface.

No need to memorize complex calculation logic; grasp the core logic in one sentence: when the price continuously falls to a critical value, it will rebound; when it rises to a high level, it will pull back. The key to judging this critical point is to see the 9 turns, and in extreme market conditions, it can extend to 13 before reversing.

The TD indicator is a standard left-side trading tool, allowing early bottom-fishing during declines, combining practicality and sensitivity. Beginners only need to remember the core rule: when you see 9, turn.

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There are many methods to analyze support and resistance. After activating PRO membership, the chip distribution can precisely locate support and resistance levels, and large main orders can intuitively reflect market strength. We will teach these step by step later; Fibonacci is also included in the research institute’s live plan to ensure everyone masters diverse investment techniques.

Next, let’s combine candlestick practical analysis. Taking BTC perpetual contracts on the Hyperliquid platform with a 5-minute cycle as an example, the core method is simple to remember:

When a red TD9 appears → bottom-fishing long position
When a green TD9 appears → exit top and short

Just by observing BTC’s trend, you can clearly see that TD9 signals almost always hit the high or low points of the market. During a sharp decline, if you want to bottom-fish but fear being caught in the middle, waiting for the TD9 signal to re-enter can greatly improve success rates. After entering, you are likely to profit quickly, avoiding the anxiety of holding a position with ongoing floating losses.

This universal algorithm is not only suitable for BTC; the success rate with ETH is also very high. Red TD9 at low levels for long positions, green TD9 at high levels for short positions, maximizing signal effectiveness.

Altcoins are also applicable. Looking at the top four coins on the hot search list, over a longer cycle, you can see dense TD signals in the sideways range (see Figure 12). Low red TD9 and high green TD9 perfectly realize high sell and low buy in oscillating markets.

However, in a continuous upward trend, sell signals TD9 will keep appearing. This is the core shortcoming of the TD indicator: it’s easy to miss the sell in a one-sided trend. But it can effectively avoid the risk of violent sell-offs by market manipulators.

In summary, the TD indicator is more suitable for bottom-fishing, top-selling, and high-low trading in oscillating markets.

In response to everyone’s questions, the research institute’s practical experience summary: TD13 corresponds to extreme market conditions, TD9 is a opening position signal, and TD13 can be used as an add-on signal. The process from 9 to 13 may face floating losses; when 13 appears, it indicates the market has entered an extreme one-sided trend. Adding positions to dilute costs makes it easier to recover and profit.

At the same time, remember: TD is a short-term indicator, not suitable for long-term trend trading. It is recommended for short-term operations below the 1-hour cycle.

Looking at SOL’s recent trend, the red TD9 signals still perform well. Even in a bear market, relying on the TD indicator to control trading rhythm can achieve steady gains. There’s no need to blindly invest fixed cycles; timing entries based on TD reversals applies to various assets like US stocks and cryptocurrencies.

Next, I will share an advanced strategy: combining the TD indicator with Fibonacci levels to further improve trading success rates, precisely lock in entry and exit points, and eliminate hesitation and holding anxiety.

Taking BTC 5-minute candlesticks as an example, overlay Fibonacci retracement lines. When the 0.618 support level shows a red TD9, it’s a reliable entry point; if the 0.382 or 0.5 support levels show a red TD9, the subsequent upward momentum will be stronger.

After the market rises and adjusts the Fibonacci levels, focus on three key support levels. Once a red TD9 appears, it’s a prime opportunity for the next bottom-fishing.

Zooming in on the current candlestick, the latest value has reached TD6. Just wait for the signal to land.

Finally, I want to emphasize the core point again: TD indicator is only suitable as an auxiliary tool for entry and exit, not for trend judgment. It’s designed for short-term trading, and this principle must be kept in mind. I hope everyone can become proficient in using this indicator, accurately bottom-fish and top-sell, and seize on-chain trading opportunities.

This article only reflects the author’s personal views and does not represent the platform’s stance or opinions. It is for information sharing only and does not constitute any investment advice to anyone.