$BTC Based on my personal understanding of the market, I’d build long positions in batches, keeping the liquidation price at a safe level, and just go for the big move.
Especially near resistance and support levels, market makers often make tempting back-and-forth moves to shake people out. For example, last night the market came close to 84,800. Longs could have taken profits and stayed on the sidelines, since there was a strong resistance level at 85,500 just above, and not far away. The market was ranging between 84,300 and 84,870, and 84,300 was a strong resistance level. In situations like this, unless you’re watching the market closely, or you entered a short position at around five or six in the morning, it’s better not to open a short position early at a high price. If you set a stop-loss, it’s easy to get stopped out by a breakout. The market trend itself is bullish, so opening short positions in advance against the trend carries a lot of risk.
It’s true that the market has been rather choppy lately. At strong resistance levels, it’s more likely to pull back than to break through decisively and push higher. At strong support levels, it’s more likely to bounce than to break down decisively. But nothing is certain. Whether you choose swing trading or trend trading, each approach has its trade-offs. Trend trading means missing some of the back-and-forth opportunities in choppy markets, while swing trading can sometimes mean missing a big move. Choose a suitable trading style based on your own time and energy.
But the most important thing is that whatever style you choose, what matters is the result: making money.
Especially near resistance and support levels, market makers often make tempting back-and-forth moves to shake people out. For example, last night the market came close to 84,800. Longs could have taken profits and stayed on the sidelines, since there was a strong resistance level at 85,500 just above, and not far away. The market was ranging between 84,300 and 84,870, and 84,300 was a strong resistance level. In situations like this, unless you’re watching the market closely, or you entered a short position at around five or six in the morning, it’s better not to open a short position early at a high price. If you set a stop-loss, it’s easy to get stopped out by a breakout. The market trend itself is bullish, so opening short positions in advance against the trend carries a lot of risk.
It’s true that the market has been rather choppy lately. At strong resistance levels, it’s more likely to pull back than to break through decisively and push higher. At strong support levels, it’s more likely to bounce than to break down decisively. But nothing is certain. Whether you choose swing trading or trend trading, each approach has its trade-offs. Trend trading means missing some of the back-and-forth opportunities in choppy markets, while swing trading can sometimes mean missing a big move. Choose a suitable trading style based on your own time and energy.
But the most important thing is that whatever style you choose, what matters is the result: making money.
