When analyzing a coin's market trend, many traders focus on the MACD indicator. The combination of the fast line, slow line, and histogram, along with volume confirmation, can generally give a pretty accurate picture of the market direction.



But there's a particular detail that is often overlooked—when the market has been rising for a long time, reaching new highs, and the MACD fast and slow lines are still trending upward, yet the histogram is gradually shrinking, this creates a "crocodile mouth" pattern. Even more concerning, the trading volume is gradually decreasing. This divergence between price and volume signals that the upward momentum is clearly weakening, and risks are brewing.

When this pattern appears, it is usually accompanied by four situations:

**First** is the end of the rally. After a significant surge, the bullish momentum begins to weaken, and the upward push diminishes.

**Second** is high-level consolidation. The price is stuck at a relatively high level, with bulls and bears engaged in a tug-of-war, and profit-taking pressure increasing.

**Third** is volume divergence. Although the price seems to be rising aggressively, the trading activity is decreasing, indicating a clear decline in participation.

**Fourth** is technical indicator resonance. Not only MACD, but RSI, moving averages, and other indicators also flash red simultaneously, with multiple divergence signals appearing together.

Once these four conditions occur simultaneously, it is highly likely that the main force is secretly offloading. It is recommended to thoroughly understand these details, as they are powerful tools for identifying market turning points in practical trading.
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ClassicDumpstervip
· 01-07 13:53
Crocodile Mouth is back, always the same routine. --- Ignoring the divergence between volume and price, no discussion about account explosion. --- The statement is correct, but honestly, how many people can really hold their ground and not sell at high levels? --- As for MACD, it's useful, but the key is whether you dare to take action at high levels. --- When all red lights are flashing, it's actually too late; the main force has long since disappeared. --- Every time, it's armchair strategizing after the fact; when the market is rising, no one looks at MACD. --- The most impressive is shrinking trading volume, yet some still add positions—really daring. --- When all four signals appear together, just run; don't overthink it. --- This analysis is fine, but the problem is execution. Most people are greedy.
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0xLuckboxvip
· 01-06 10:47
Once the crocodile's mouth appears, the day to run away is not far off. The times when I got trapped were all because I didn't see this signal clearly.
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DogeBachelorvip
· 01-06 10:27
Crocodile mouth is open, brothers should run now
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