Based on the latest candlestick chart, the DOGE/USDT price is currently near the middle band of the Bollinger Bands and is attempting to break through the upper band. Here are some operational suggestions for reference:
1. Short-term trend:
A price breakout above the upper band of the Bollinger Bands may trigger further upward movement, but it is essential to pay attention to whether the trading volume increases simultaneously. If the breakout is accompanied by volume, consider adding to positions in the direction of the trend.
If the price hovers near the middle band of the Bollinger Bands, it is advisable to wait and see for a clear directional signal.
2. Support and resistance:
Short-term support: the lower band of the Bollinger Bands (around $0.40) and the middle band (around $0.42).
Resistance: recent high of $0.45 and the upper band of the Bollinger Bands.
3. Trading strategy:
Aggressive traders: If the resistance level of $0.45 is broken, consider entering with a small position, setting a stop-loss below $0.42.
Conservative traders: Wait for a breakout above $0.45 followed by a pullback to confirm support before entering to reduce the risk of chasing highs.
4. Take profit and stop loss:
If entering a long position, set the initial take profit around $0.46-$0.48, with a stop-loss below $0.40.
If the price falls below $0.40, consider stopping out or going short.
5. Technical indicator confirmation:
Pay attention to changes in trading volume; if volume decreases, it may signal a short-term adjustment.
If indicators like RSI enter the overbought zone (above 70), be cautious of pullback risks.
Risk warning: The market changes rapidly, please adjust your position management in a timely manner according to your risk tolerance, and avoid blindly chasing highs or bottom fishing.