Evening ETHUSDT Long Position Short-Term Entry Suggestion on 5/11:

Currently, ETHUSDT is fluctuating in the range of 2520-2525, with strong short-term support.

The midday AI strategy from Rui Mi has been stopped out and has pulled back down; although there was a small loss, it is recommended to enter with a light position in uncertain market conditions.

Suggestions:

• Long position entry area: 2500-2510 USDT (waiting for pullback to confirm support)

• Stop-loss setting: 2475 USDT (to control risk)

• First target: 2540 USDT (short-term profit)

• Second target: 2580 USDT (swing target)

If the price quickly retraces to 2500-2510 and rebounds, confirming that support is effective, entry can be considered.

Volume recovery confirms support:

1. Significant increase in volume:

• After the price touches the support area (such as 2500-2510), a large volume occurs, indicating that the bulls are actively entering.

2. K-line combination:

• A long lower shadow or hammer candlestick appears, indicating strong buying power below.

• Consecutive green K-lines or rebounds show that bullish strength is gradually increasing.

3. Technical indicator confirmation:

• RSI rebounds from the oversold area and breaks above the 30 or 40 level.

• MACD indicator shows bottom divergence, with the fast line crossing above the slow line (golden cross).

Operational strategy:

• If the support area is confirmed to be effective, consider entering a long position.

• Set the stop-loss below the support area, such as 2480.

• First target: 2550-2580.

• After entering, pay attention to the continuous increase in volume to confirm upward momentum.

Reasonable Risk-Reward Ratio Suggestion:

In cryptocurrency trading, especially with high leverage (like the 125x you often use), the risk-reward ratio should be designed carefully:

1. Standard risk-reward ratio: 1:2 or 1:3

• Risk: Each trade should bear a maximum of 1 unit of risk (e.g., a loss of 1 USDT per trade).

• Reward: Each trade should aim to earn at least 2-3 times the risk (e.g., earning 2-3 USDT).

2. Actual application in ETH trading:

• Entry: 2500 USDT

• Stop-loss: 2480 USDT (risk of 20 points)

• First take-profit target: 2540 USDT (reward of 40 points, 1:2)

• Second take-profit target: 2580 USDT (reward of 80 points, 1:4)

3. Dynamically adjusting take-profit:

• When the price reaches the first target of 2540, move the stop-loss up to the entry price of 2500 to break even.

• If the price continues to rise, gradually increase the take-profit to ensure profits are locked in.