🔴｜Why isn't it breaking out of the consolidation zone? Why is it dropping again?
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The previous three days have been in a narrow range of fluctuations. Many retail investors, seeing the breakout, rushed in, starting the pattern at 3000, using a 5-minute chart to form a daily pattern at 3000.
First, it broke out to 2568 and then quickly retraced. At that time, a doji appeared for 5 hours, which is a very dangerous signal. If you were holding a long position, chasing in wasn't wrong, but if it breaks down and you can't bear to stop loss, that's fatal.
Yesterday, I wrote an article warning everyone to be cautious of false breakouts followed by sharper drops.
Now can you say it broke down and then chase a short position? Of course not, my friend.
Right now, we are definitely looking to position long on the right side, with such an extreme risk-reward ratio. Isn't this more cost-effective than your long position at 2540? You dared to go long at 2540, but now at 2400 you are hesitant? Isn't this just human nature?
First take profit temporarily around 2473, and set the stop loss a little below the previous low.
