If you've been diving into the world of meme tokens on Solana, you know that providing liquidity through Dynamic Liquidity Market Maker (DLMM) positions on Meteora AG can be a lucrative way to earn fees. But the real challenge often lies in knowing when to exit those positions to lock in profits and avoid rugs or dumps. In a recent X thread, trader Logical TA (@tendorian9) breaks down some straightforward exit strategies using common technical indicators. Let's unpack his insights in a way that's easy to follow, even if you're new to this.

DLMM, short for Dynamic Liquidity Market Maker, is a feature on Meteora that lets liquidity providers (LPs) concentrate their liquidity in specific price ranges to earn higher fees from trading volume. It's especially popular for volatile meme coins, but exiting at the right time is key because these markets can turn on a dime.

Logical TA emphasizes that while entering a position might be simple—spot high volume and jump in—exiting requires more nuance. Factors like your trading style, lifestyle, and the coin's stage in its lifecycle all play a role. Importantly, he notes that no strategy is foolproof, and success hinges on solid coin selection upfront. (Check out his earlier post on coin selection for more on that.)

His core approach revolves around using the Supertrend indicator as a baseline signal for potential weakness, then combining it with other tools for precise exit points. All examples use 15-minute charts from TradingView, focusing on a meme coin like dogeman/SOL.

Using Supertrend as Your Foundation

The Supertrend indicator is a trend-following tool that helps identify when the price is in an uptrend (above the line) or downtrend (below it). Logical TA likes it for its simplicity in spotting choppy periods where fees can accumulate.

• Stay in your DLMM position as long as the price remains above the Supertrend line—this acts as support during sideways movement.
• When the price breaks below it, that's your cue to prepare for an exit. Look for a green candle or a pump to close out.

This break signals the first sign of weakness, but don't panic-sell immediately. Instead, pair it with other indicators for better timing.

RSI(2) for Catching Pumps

The Relative Strength Index (RSI) measures momentum, and by setting it to a length of 2 (the fastest setting) and an upper limit of 90, you can spot overbought conditions quickly.

• After a Supertrend break, monitor RSI(2).
• Wait for it to spike and close above 90—this often coincides with a short-term pump.
• Exit there to maximize gains.

In the example, this method even allowed re-entry when the price bounced back above Supertrend, letting you earn more fees.

This ensures you're exiting on strength, not fear.

MACD for Histogram Shifts

The Moving Average Convergence Divergence (MACD) tracks the relationship between two moving averages. Logical TA uses default settings here.

• Post-Supertrend break, the MACD histogram will likely be negative.
• Wait for the first green histogram bar, indicating momentum shifting up.
• Exit on that bar.

While not always perfect, it can catch tops before a dump in certain scenarios.

It's a straightforward way to confirm a rebound.

Bollinger Bands for Deviation Plays

Bollinger Bands consist of a middle moving average with upper and lower bands based on standard deviations.

• After the Supertrend break, watch for the price to close above the upper band.
• This signals overextension (two standard deviations from the mean), often leading to a pullback.
• Exit there.

Prices spiking above the upper band get sold off frequently in volatile markets.

Key Takeaways and Caveats

Logical TA wraps up by reminding us that these are basic, widely used indicators—no fancy stuff needed. The goal is to exit on a pump after spotting weakness via Supertrend. However, in the wild world of meme coins, rugs can happen anytime, so technicals aren't a silver bullet.

He stresses starting with the right foundation:

• Choose quality coins (see his guide).
• Pick appropriate pools and ranges (update coming; check this post).

Also, early meme liquidity is thin, so big sells can cascade. Use safe ranges to mitigate impermanent loss.

If you're active in Solana DeFi, these strategies could help refine your LP game. Remember, this isn't financial advice—always DYOR and trade responsibly. For more tips, follow @tendorian9 on X or explore Meteora's DLMM pools. What's your go-to exit signal? Share in the comments!