Wait for convergence after super divergence · LangLang Trading Principle

After several rounds of gains, when a super-large divergence appears at a key resistance level, the consensus has been released, so in the short term, don't bet on either direction. Focus on the end of the correction: the more it converges, the smaller the amplitude, and the longer it goes without a move, the more you should watch it.

In LangLang's words

With a super-large divergence, don't participate in the short term; it needs a long consolidation.
The more it converges, the smaller the amplitude, and the longer it goes without a move, the more you should watch it.
After a high-level acceleration and spike down, don't bet on either direction in the short term.
Good market conditions require convergence and time.

How the course teaches it

BIT LangLang · 2024-05-25 — Trading the Late Stage: Shifting Leadership, the Shelf Life of Laggards, and Waiting for the Leader's Second Wave

2024-05-25 · Video 19:28

The first major divergence after five waves, and waiting

LangLang mentions that this upward segment has completed five waves, and it is normal to begin correcting; but the actual pullback was quite fierce, exceeding usual expectations and making people uneasy. He defines the current position as the first major divergence after the main upward wave. For existing positions, his personal handling is either exit at cost or hold it up. This shows that base position profit is used to absorb the risk of adding at highs: if it relaunches, continue betting on the leader's second wave; if the drawdown swallows overall profit, at least exit near total cost.

BIT LangLang · 2024-03-09 — PEPE Main-Leg Review: Why Picking the Right Leader Wasn't Enough — Divergence Stage, Re-Entry and Core Position

2024-03-09 · Video 25:40

Big divergence: switch from left side to right side

LangLang stresses that continuing to buy longs during big divergence is left-side absorption; the correct approach is to wait for the adjustment to end and enter on the right side when price breaks upward after consolidation. As long as there is still upside space, after a big-divergence breakout you can handle it with the same logic as before; if you miss the breakout, you can still wait for a pullback to absorb at the bottom, but the later it gets, the more you must reduce repeated left-side entries. The higher the position, the higher the risk of big divergence and the move ending; even if the final stage can still be traded, you should “take one bite and leave,” not continue to apply the earlier expectation of holding through multiple waves.

BIT LangLang · 2024-03-02 — Resonance Leaders Before Catch-Up Plays: BTC's Main Leg, High Consolidation and Rotation Order

2024-03-02 · Video 25:40

PEPE and WLD: wait for the correction to complete

LangLang mentioned that PEPE had already run one wave, corrected, then run another wave, and when it enters another correction now you should not participate and should wait for the correction to complete. He believes there is still a big wave ahead, but does not know when it will finish correcting or how long the correction will take. WLD had a very fierce rally, then went into high-level consolidation; LangLang asks to watch for a restart after the consolidation completes, using APT's historical high-level consolidation as a reference.

Weekly reviews where it applied

LangLang's Trading Principles · The Rules His Course Keeps Coming Back To