Anyone who ridicules those who shorted at 59k before does not understand charts or trading

At that time, a 4H rising wedge was formed at the 59k position. Friends who are familiar with charts should know that it is not like the sideways convergence patterns such as the triangle or rectangle, where the long and short tendencies are not obvious. The rising wedge is usually a bearish pattern with a high probability in the chart pattern, and the position of the wedge E point is just at the suppression position of the downward trend line extended from 72k, and there is a certain divergence between volume and price. In this case, most traders who have discovered this pattern and phenomenon will choose to go short. Even if they do not go short, they will choose to wait and see. They must not go long. Those who dare to go long directly here are more gambling.

After talking about the basic conditions, let's talk about stop-loss and stop-profit:

There are two stop-loss methods for this short order

1. Manual stop-loss of the entity breakthrough pattern or trend line.

2. Passive stop-loss of pending orders above the pressure level. This is a protective stop-loss method to prevent the price from changing suddenly and quickly without manual stop-loss in time.

There are two ways to stop profit for this short order

1. Point B of the wedge

2. Fibonacci trend extension 1:1

According to the method of maximum stop loss and minimum stop profit, the profit and loss ratio of this short order is about 3.19. My rule is that for the party with a higher probability, a profit and loss ratio of >1 can be done, a profit and loss ratio of >2 is worth doing, and a profit and loss ratio of >3 must be done.

In summary, the trend at that time was a must-go short position in my trading system, and even if it was not short, it was never possible to go long there.

Why do I talk about this? First, I can't stand it, and second, I hope you can think more about it. Trading itself is actually trial and error. Only by opening an order can you feel the market and follow the market. Trading is not a diode. It is not that you can only go in this direction after you start. If the market tells you that you made a mistake, then you admit your mistake or even reverse your hand. If you can't beat it, joining is not a joke, but a daily routine of traders.

No one can accurately predict the future trend of the market. The reason why traders can make money in the market is not because of how accurate their judgment of the market is, but because they react quickly and admit their mistakes quickly. They will try to use the best solution for each order. #美联储何时降息？ #山寨季何时到来？ $BTC