Current DOGE trend (consolidation, Bollinger Bands narrowing, moving averages entangled), the following are specific entry strategies:
Strategy: Sell high and buy low within the consolidation range
1. Observe the price range
• Resistance level: 0.3950 (near the upper Bollinger Band).
• Support level: 0.3820 (near the lower Bollinger Band).
2. Entry conditions
• Long position at low:
• When the price approaches 0.3820 and there are obvious signs of a bottoming out (such as lower shadows, bullish candlestick close, RSI oversold below 30).
• When confirming volume or rebound, buy within the range of 0.3830~0.3840.
• Short position at high:
• When the price approaches 0.3950 and there are obvious signs of resistance (such as upper shadows, bearish candlestick close, RSI overbought above 70).
• When confirming reduced volume or reversal, short within the range of 0.3940~0.3950.
Take profit and stop loss
• Take profit:
• Long: target at 0.3900~0.3920 (middle Bollinger Band).
• Short: target at 0.3850~0.3870 (middle Bollinger Band).
• Stop loss:
• Long: set stop loss below 0.3800.
• Short: set stop loss above 0.3980.
Risk control suggestions
• Position control: each trade should not exceed 1/3 of total position, maintain flexibility.
• Confirm trend change: if the Bollinger Bands open and the price breaks through the upper or lower band, stop the consolidation strategy and switch to trend following (trend trading).
• Pay attention to trading volume: when breaking key support/resistance levels, it should be accompanied by increased trading volume to avoid false breakout traps.
Other auxiliary signals
• Observe whether MACD forms a golden cross above the 0 axis (buy signal) or a death cross below the 0 axis (sell signal).
• RSI close to 30 (buy) or 70 (sell) can be used as a reference.
