We are now in a phase of full-scale altcoin explosion, focusing on emotional divergence. When should we implement risk control to preserve profits?

First, we need to check if there is a significant bearish candle appearing for Bitcoin and Ethereum in the short term.

Secondly, we need to assess the overall sentiment of altcoins. The most direct way is to observe if all cryptocurrencies collectively start to retract. If the number of rising cryptocurrencies remains high in the short term, hold your position. However, if more than half of the cryptocurrencies begin to retract, even if Bitcoin and Ethereum are still fluctuating at high levels, we need to raise our risk control.

Typically, we do not set stop-loss orders unless it's a breakeven loss after opening a position. Stop-loss considerations only arise after a divergence occurs to prevent a collective waterfall decline and significant profit retracement.

By opening the 4-hour or daily charts of Bitcoin and Ethereum, you will clearly see that we are currently in a strong offensive phase, with each candle being a solid bullish candle. What does divergence refer to? It's when a doji appears, and a bearish candle engulfs the previous ones at the hourly level or above. This is a time to be cautious, paying attention to the trading volume and open interest at the bearish candles. If the trading volume is large and the open interest shows a significant decline, then short positions are entering, which requires caution. If the decline is due to position reduction, it might still be okay to hold on, as it could just be some profit-taking, and there might still be funds coming back in.

No one will easily short with a large position without clear logic from the main players; this is crucial to understand.

No one can predict the peak. We can only speculate on where the attack might reach under historical high and low pressures. For breakthroughs above historical highs like BTC, it is an unexplored territory, and all the selling pressure above has been absorbed. Theoretically, it doesn't suggest a peak; it all depends on how much profit the main players want to take. Just follow along and pay attention to the signals indicating the exit of main players. If the short-term upward structure is damaged, we need to be cautious. We are not afraid of sideways movement, but we fear the destruction of the upward structure.