Technical Knowledge: Lecture 37- guillotine Content word count: 600 Reading time: 1 minute The term 'guillotine' is a metaphorical term that refers to a large bearish candlestick breaking through several moving averages in one fell swoop, indicating a strong bearish signal. As shown in the figure below, ETH formed an M top in Figure A, and after drawing its neck in Figure B, a large bearish candlestick fell below MA10 in one fell swoop MA30、MA60， Form a guillotine shape and send a bearish signal for the future market. In this case, due to the appearance of the M-top structure in the early stage, the upper pressure is strong. Figure B is located at the junction of long and short trends, and the medium and short-term moving averages have clearly fallen. When a guillotine shape appears, it is an extremely dangerous signal. Continued decline is a high probability event, and the support below usually only plays a mitigating role, but it is also difficult to have a decent rebound. New chips that are ready to buy should be observed, and the previously trapped chips should be withdrawn through a pullback. Cutting knives at different positions: (1) In the early stages of an uptrend, when a guillotine appears, it may be a short-term or secondary adjustment signal, and short-term trading needs to be controlled according to specific changes in the market to regulate the pace of operations. (2) When a dead end occurs after a significant upward trend, especially when there is already a bearish structure in the current period, or when it appears after a pullback to an important suppression level, it may be a transition point between long and short trends. It is important to be extra cautious and not rush to chase the rise and be bullish at this level. When judging the "guillotine", the selection of the moving average system mainly adopts a mix of short-term and medium-term moving averages, such as MA10 mentioned in this case MA30、MA60， The relative stability and accuracy will be high. If they are all short-term moving averages, they are likely to be misled. ETH Real time case: On January 7th, when ETH experienced a guillotine, Sugar Brother suggested that the trend did not support sustained price increases. This bearish candlestick usually accompanies downward aftershocks, and the support below this trend usually has a slowing effect, but it is also difficult to have a decent rebound. In the short term, it is recommended to withdraw first and wait and see for new chips. https://(x.com)/Xxoo3k5k/status/1876661982058918215