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Position and defense rules, let's talk about:
The label "head position" defaults to 5%*20 times or 2%*50 times. Generally, the points here may break down or break up. Entering the head position can go up or down, which does not affect the choice of direction. The "head position" is equivalent to the vanguard of a breakout commando team; because the forces are small, if the enemy is strong, even if the entire army is wiped out, reinforcements can arrive and turn defense into offense.
Labeling "short sell" or "short buy" generally refers to the positions to enter with a small position, located above the midpoint of the rebound target. When the market is not strong, a small position can be entered here, because when it reaches the third resistance point, it usually first pulls back to the second resistance point, and then goes to the first resistance point. If the market is slightly strong, ignore the entry. A "small position" typically refers to (6-7%)*20 times or 3-4%*50 times.
Labeling "normal position for short or low long", is the standard direct (15-18%)*20 times or 4-5%*100 times. The entry position here is basically an important resistance or support point. To respect the important resistance level means to short. To trust the support point means to long. A normal position is an active offense.
About defense:
This depends on each person's actual position situation, as different capital positions, patterns, timeframes, and defenses vary. For instance, today's maximum resistance is around 84025; if it breaks through, it will touch around 84450. Generally, the common defensive point is sufficient at 84600. However, some people have a strong liquidation point above 130,000, so they naturally do not need to defend. Whether it spikes up by two or three hundred points or just approaches this resistance, it will still go down again. Therefore, such positions do not need defense; not only is defense unnecessary, but they can also add two more pressure levels to increase their short position.
Generally speaking, I provide three resistance points every day, which are the positions of the 0.382, 0.5, and 0.618 Fibonacci retracement levels. 0.618 is the conventional resistance point, and without marking the head position, it is normal to enter at the regular position. If entering at the middle 0.5 position, it usually will pull back to the first resistance point 0.382 and below. Therefore, when entering at the second resistance point, you need to take partial profit at the first resistance point, and if the first resistance point is broken, then adjust the strategy.
When the short position btc floats above 1500 points, and there is an accelerated decline in the middle, you can increase your position and roll over. This requires practice. When the short position floats above 3000 points and retraces to near a major support point, you can take a small position to hedge against going long, making a profit on the rebound, which is like icing on the cake, and the margin for error is very low. You have a floating profit from the high short position to cushion you, and after an accelerated decline, you are more confident to go long or bottom fish. This is similar to playing cards; if you have already won 1000, you are more confident to play a couple more rounds, at most you just return the 1000. If you only have your principal left, you will feel timid, even if you are sure that the dealer's hand is not as strong as yours, you won't dare to bet more. If you short from 87600 to the current 83000, with a profit of 4600 points in hand, no matter how much it drops, you can have the courage to take a chance, to try and error near each support level, to bet on a small rebound to add profit, at most it would just be a quick stop loss, without touching the fundamental 4600 points of floating profit you already have.