After a good night's sleep, Ethereum has reached 2900.
On Friday night, Nasdaq fell by a full 2%, which is a significant risk, and there were no positive signals over the weekend. The probability of continuing the decline was high, and ultimately, this Monday continued last week's downward trend, further selling off. However, I didn't catch the move either, because based on the K-line structure at the time, it was indeed possible to identify an upward trend, and I wasn't the only one who thought so. So I temporarily changed my short position, raising the target from above 3150 to 3300. Missed out on a small rally.
Answering: what to do if long positions get trapped?
You should review the weekend summary more thoroughly. By Monday open, this risk factor has already occurred and can be ruled out. The Japanese interest rate hike hasn't happened yet, but the market has expectations, waiting for the negative news to be fully priced in. The Nasdaq crash was also due to the Japanese rate hike issue; essentially, these are chain reactions of the same event. Liquidity issues are expected to recover after Christmas, and at the same time, a large number of liquidations of short positions have been gradually accumulated above. Therefore, after the three risk factors mentioned over the weekend are resolved, and no unexpected negative events occur, the market can naturally move upward.
Additional note: Today is Tuesday, and important Non-Farm Payrolls and unemployment rate data will be released.
There is very little time left for the bulls to make a rebound, because on Friday night the US stock market crashed 2%, so the opening on next Monday is still a mystery. Secondly, the Market has basically anticipated the Japanese interest rate hike on the 19th, and with liquidity drying up at the end of the year, I was originally waiting for a weekend correction to at least rebound above 3150 before shorting. However, the weekend was very dull, the rebound structure seems to have completed but is very weak, which makes me wonder whether it is really a trap for shorting or if a crash is truly imminent. If I had closed my position at 3050, I would now be willing to short and optimize for about 50 points, but I exited at 3100. Opening a short at this position now doesn’t really make sense. As a conservative trader, I ultimately choose not to place any trades. If it really falls further, then I’ll just accept it.
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After a good night's sleep, Ethereum has reached 2900.
On Friday night, Nasdaq fell by a full 2%, which is a significant risk, and there were no positive signals over the weekend. The probability of continuing the decline was high, and ultimately, this Monday continued last week's downward trend, further selling off.
However, I didn't catch the move either, because based on the K-line structure at the time, it was indeed possible to identify an upward trend, and I wasn't the only one who thought so. So I temporarily changed my short position, raising the target from above 3150 to 3300. Missed out on a small rally.
Answering: what to do if long positions get trapped?
You should review the weekend summary more thoroughly.
By Monday open, this risk factor has already occurred and can be ruled out.
The Japanese interest rate hike hasn't happened yet, but the market has expectations, waiting for the negative news to be fully priced in.
The Nasdaq crash was also due to the Japanese rate hike issue; essentially, these are chain reactions of the same event.
Liquidity issues are expected to recover after Christmas, and at the same time, a large number of liquidations of short positions have been gradually accumulated above.
Therefore, after the three risk factors mentioned over the weekend are resolved, and no unexpected negative events occur, the market can naturally move upward.
Additional note:
Today is Tuesday, and important Non-Farm Payrolls and unemployment rate data will be released.
If I had closed my position at 3050, I would now be willing to short and optimize for about 50 points, but I exited at 3100. Opening a short at this position now doesn’t really make sense.
As a conservative trader, I ultimately choose not to place any trades. If it really falls further, then I’ll just accept it.