1. Long Entry Point:
Potential Entry: If the price consolidates above the 5-day and 10-day moving averages, with a positive divergence on the MACD and an increasing volume, this signals bullish momentum. An entry could be made when the price stays above $175 with increasing volume.
Stop Loss (SL): Set at around $170, just below the recent low, allowing room for minor volatility without triggering early.
Take Profit (TP): A short-term target could be around $185, based on the previous swing high and resistance levels.
Trade Duration: 1 to 2 days.
2. Short Entry Point:
Potential Entry: The MACD is showing a slight bearish divergence (MACD line < signal line, with negative momentum), and volume has started to decrease. A short position could be entered if the price breaks below $173.50.
Stop Loss (SL): Set around $177, just above the recent swing high to protect against a short squeeze.
Take Profit (TP): Target around $165 (previous support and 24h low), where buyers may step in.
Trade Duration: 1 to 2 days.
3. Plan if Signals Go Against You:
Plan A (Long Goes Wrong):
If the price dips below your stop loss ($170), exit the trade to minimize losses.
Consider a hedging strategy by shorting or setting up a stop-and-reverse order at $169.
Plan B (Short Goes Wrong):
If the price breaks above $177, exit the short position to avoid larger losses.
Consider entering a long trade above $177, targeting $185 if the bullish momentum strengthens.
Plan C (Long Becomes Neutral):
If the price stays between $172 and $175 without a clear trend, hold and monitor. Avoid overtrading during sideways markets.
Reassess the MACD for divergence or crossovers, and be prepared to close positions if volume dries up.
Plan D (Short Becomes Neutral):
If the price fluctuates between $173 and $177 without strong bearish momentum, maintain your position but set tighter stops.
Reenter shorts only if volume increases and the MACD continues showing negative divergence.
Overall Summary:
Long entry above $175 with SL at $170 and TP at $185.
Short entry below $173.50 with SL at $177 and TP at $165.
Monitor MACD, volume, and moving averages to confirm momentum shifts.
If trades go against you, use hedging or stop-and-reverse strategies with clearly defined plans.
Would you like me to refine this based on any other indicators or time frames?
