I would like to share with you a way to deal with the market situation that I have recently faced with a volatile market with unclear trends but obvious support and resistance! It’s not that you’re bullish when it goes up, but you’re bearish when it goes down!
The current trend of BTC is unclear around 43,000, and it can go up or down! If the volume breaks through the previous high of 43888, it will definitely touch the resistance level near 44500, or even go all the way up, and it is not impossible to stand firm at 45000. However, BTC has been below the downward trend line and has not stood on the upward trend line, so The current price of 43,000 is a watershed!
My current approach is to open both long and short positions at the price of 43,000, totaling 50% of the positions. If the trend is determined to be upward, I will close half of the long positions to cover short positions near 44,500. If the volume exceeds 44,500 to around 45,500, I will close the rest. 50% of the long positions will be covered by the short positions. If it does not break through 44500, I will close the long positions and wait and see, but will not cover the short positions. When it falls below 44500, I will continue to cover the short positions. At this time, I will change from long and short to short! At this time, my long orders have already made a profit, and I continue to wait and see the trend. Even if my short orders continue to go up, I still have 50% of the position that can be filled. After the correction, both long and short orders will make profits. If you want to follow I said that if BTC goes up all the way without a correction and breaks through 100,000, isn’t it a liquidation? Then I can only say that you are right!
What is mentioned above is how to operate when the trend is upward. The operation method when the trend is downward is the same as mentioned above. Close the short order at the support level of 40500-41800 below. At this time, if you make a profit from the short order, you can follow the trend to add to the long position or Reduce your position, change from long and short positions to long positions, and stop losses and profits in a timely manner! There are risks in the currency circle. When encountering extreme market conditions, you must stop losses in time. There is no way to make a guaranteed profit. As long as you reduce your risks, it will be profitable in the long run!
