Trading Strategy and Outlook: Navigating the Current Market Dynamics
The ongoing market movement presents a unique opportunity, and I project the current trajectory could culminate at 15,000, marking the conclusion of wave 5 on a weekly timeframe. Whether this development propels prices into the tens of thousands in the future remains uncertain and will require further observation. From the 108,000 level, interpreting the structure is complex—it could signify either a single wave or a three-wave correction. If viewed as a three-wave pattern, the recent rebound may represent part of wave b. Conversely, if seen as a single wave, the rise might indicate a bear market wave 2c or bc, with the current rebound nearing its end. This would set the stage for a significant wave c or wave 3 decline.
For short-term operations, the rebound appears likely to reach the 92,xxx level, with potential targets around 100,000. My approach involves partial profit-locking at 96,xxx and exiting near 98,xxx, where the wedge formation suggests a probable conclusion to the rally. This calculated exit aligns with the overall market structure and my risk management framework.
Positioning and Risk Management
Regarding short positions, my initial plan is to allocate 15% of the total capital while targeting a 50% position as the market confirms the anticipated wedge formation. While the strong momentum observed recently warrants caution, I’ve decided to maintain the initial position and wait for clearer signals before adding to it. If the trend deviates, any losses would be limited to the initial allocation, ensuring controlled risk. Should opportunities arise, I will strategically scale into the position, aiming to capitalize on a potential wave 3/c decline. I am increasingly inclined to believe that the bull run originating from the 10,000 level has reached its peak.
This strategy emphasizes a disciplined and cautious approach. While I initially underestimated the number of traders following my lead, my goal is straightforward: to test whether a few thousand dollars can grow exponentially over one to two years. By adhering to calculated plans and effective risk management, this experiment seeks to demonstrate the power of structured
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