Method to determine if the market is experiencing a pullback: use $BTC Bitcoin futures trading pairs, weekly level.
1. Four consecutive candlesticks have not been able to hold above the previous high of 110,000.
2. The RSI indicator shows divergence; reviewing can observe that each time such indicators appear, it will at least reach the mid-track of RSI. A 15-30% pullback. If a reversal occurs, the depth will be deeper and will touch the RSI's oversold zone.
3. The upward trend line from 75,000 to this high of 110,000 has been broken (red diagonal line).
4. Confirmation of the 2B pattern at the weekly level (green horizontal trend line).
5. The lower horizontal trend line at the weekly level (red), this important support line at the price of 100,000. If it breaks, it can confirm that the pullback has officially begun.
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Operation suggestions:
1. If you hold a short position above the current price, then you should continue to hold until the price of 100,000 to observe whether it acts as support (close or reduce position) or breaks (add position). Instead of focusing on small level candlestick changes during the day, such as 5 minutes, 15 minutes, 1 hour, etc.
2. If you are flat: then cherish every rebound now, you should look for opportunities to buy short positions in smaller time frames. For example: use Bollinger Bands to find buy points at the mid-track and upper track of 1-hour and 4-hour charts.
3. If you hold a long position, then at the high point of the rebound, you should close your position. If it breaks the previous high, you should buy into a long position again.
