CURRENT MARKET CONTEXTS...
Current Price: $71,904.01, slightly below the moving average (MA60) at $71,866.62, indicating a possible resistance level.
MACD: MACD line is above the signal line, showing bullish momentum, but it’s approaching a potential crossover that could signal weakness.
Volume: Low to moderate volume, suggesting reduced trading activity, which may precede a breakout or breakdown.
STRATEGY...
LONG POSITION...
1. Entry Point: Enter around $71,500, slightly above the 24-hour low ($71,436), with confirmation of bullish momentum (such as a MACD crossover upwards).
2. Stop Loss: Place at $70,900 to manage downside risk if the price falls below recent lows.
3. Take Profit: Target around $73,500, just below the 24-hour high, where resistance might be encountered.
4. Trade Duration: Short to medium-term (1-4 hours) if momentum sustains; monitor for early signs of reversal.
SHORT POSITION...
1. Entry Point: Consider entry if the price fails to break above $72,000 and shows bearish momentum (MACD crossover downwards).
2. Stop Loss: Set at $72,500, slightly above the resistance level.
3. Take Profit: Target around $70,500, aiming for the recent support level.
4. Trade Duration: Short-term (1-2 hours) due to potential price volatility.
CONTINGENCY PLANS...
Plan A (Market goes against initial trade direction):
For a long position, if the price drops below $71,500 and MACD turns bearish, exit early to minimize losses.
For a short position, if the price rises above $72,500, close the trade to avoid further losses.
Plan B (Stop-loss trigger):
If the stop loss is hit, re-evaluate the trend and indicators. Avoid re-entering immediately to reduce the risk of emotional trading.
Plan C (Trend reversal signals):
If there’s a clear reversal (e.g., price crosses the MA60 or MACD shows strong divergence), consider a counter trade after confirmation.
Plan D (Market consolidation):
If the price remains between $71,500 and $72,000 with low volume, hold off on trades until a clearer direction is established.
This approach provides flexibility for adapting to both bullish and bearish scenarios while keeping risk management in focus.
(IF YOU LIKE THE ARTICLE LEAVE YOUR COMMENT & PLEASE FOLLOW ME FOR MORE NEW ARTICLES...😇 )
Thanks 🤗
