In short-term trading, once there are signs of market reversal, it is key to exit immediately. After all, there are countless trading opportunities every day, and choosing to exit rationally can avoid the risks brought by greed. Greed is the root cause of many short-term traders' inability to make profits; they fail to stop profits when profits are appropriate, but instead experience countless ups and downs, and sometimes even turn the original profits into losses.
The success of short-term trading lies in the accumulation of small profits. Smart traders know how to strive for only a few percentage points of profit in each transaction. By making several small profits in a row, the total profit accumulated can be quite considerable.
CORE’s four-hour chart shows its current market dynamics, revealing some key technical signals that provide short-term traders with operational clues:
Pattern analysis: After a period of decline, the CORE price formed a clear shock area and tried to bottom out twice in this area. This trend usually indicates that the market is looking for direction.
Trading volume analysis: In the shock zone, although the bulls failed to significantly increase the volume, the shorts were observed to gradually shrink. This is usually regarded as the exhaustion of the shorts' power, and the bulls are relatively dominant.
Trendline Analysis: CORE price is currently close to a long-term downtrend line, which has historically acted as an important resistance level. However, current price dynamics suggest a possible trend breakout.
Support and resistance: The price has reached the previous dense trading area, which may form short-term resistance. At the same time, strong downward support provides a safety cushion for the price.
Combined with the above analysis, CORE shows strong bullish power in the short term and has the potential to break out upward. This area provides an attractive short-term trading opportunity because the distance from the current position to the support level is short, the risk is small and the potential reward is high.
Trading strategy: It is recommended to consider entering the market at the current position while setting a tight stop loss to protect capital. Short-term traders should be ready to realize profits and exit at any time to avoid being passive due to sudden market changes. In the rapidly changing market on the four-hour chart, flexible response and timely profit-taking are the keys to maintaining profitability.