The logic of building a position on the left

Based on value judgment: It is believed that the current price is close to or lower than the intrinsic value of the asset. The bottom support level of the box at 92,000 may be a low-value area. If the price returns to the value after building a position, considerable profits can be obtained.

Expected trend reversal: It is predicted that the market trend will reverse from falling to rising or consolidating. If you make arrangements in advance before the price rises significantly, you can get higher returns after the trend reverses.

Reasons for choosing the bottom support level of the box at 92,000 to build a position

Historical support effectiveness: In the past, the price has stopped falling and rebounded near 92,000 many times, forming a strong support, indicating that there are more buying orders at this position, which supports the price.

● Box theory basis: In the operation of the box, the bottom support level is an important reference point for buying. When the price touches the bottom support, there is a high probability of rebound or consolidation, which provides a good opportunity to buy.

Reasonableness of setting stop loss at 90170

Control loss: Set the stop loss at 90170. If the price falls below this level, it means that the market trend is not in line with expectations. There may be unexpected negative factors or trend misjudgment. Timely stop loss can avoid further loss.

Reasonable risk-return ratio: The stop loss space from 92000 to 90170 is relatively small, but once the price rebounds upward, the profit space may be larger, which conforms to the principle of small stop loss and large profit.

Technical analysis confirms: 90170 may be an important support level at the lower edge of the box, or it may be the intersection of key moving averages and trend lines. Falling below this level may mean the beginning of a larger downward trend, so setting a stop loss here is reasonable in technical analysis.