Shorting/Going long based on signals


For example: Why can't the current ETH price $ETH 3815 be shorted, and why must it test shorting/going long at the 3699-3700 points?
Because this is the support level on the 4-hour chart.
Apply this to short-term trading. For example, in this case, we go long and shorting at this position.
When the price breaks through the strong support level of 3700, short 1 position at 3695. Short based on the signal. The target price will be the support level of 3639.
When the price reaches the support level and rebounds, go long 1 position at 3701-3710 points. (Usually, when it first touches the support level, the price will rebound and reach this point, and the target price depends on your willingness.)
Of course, a stop-loss was set there.
If both stop-loss orders are set at the same time, then wait for a while and close the position after the trend is confirmed.
So, trading on this 4-hour chart and waiting for clear signals is safe, even if shorting at 3815 doesn't yield much profit.
Currently, due to a technical rebound, the 4-hour chart has issued a bullish signal.
Shorting at 3699-3695 to 3639 is a signal of a breakout on the 4-hour chart.
ETH-3.71%
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