Current Situation
You bought on the rise and are now trapped. The current price is 0.655, MACD is a death cross (bearish trend), the Bollinger Bands have narrowed to a thread (about to change), but the closing price is stuck at the middle band (the line of life and death), and it could crash at any time!
Three Steps to Break Free from Losses
Immediate Stop Loss:
Must defend 0.643 (today's lowest point)! If it breaks, there is a high probability of accelerating decline. The current price is down only 1.8% to 0.643; cutting losses is better than being deeply trapped.
Rebound Reduction Point:
If it rebounds to 0.658-0.660 (above the middle band + intraday moving average pressure), reduce your position by at least 50%, and recover first!
If it rushes to 0.662 (today's high), don't be greedy! Close all or leave 10% for a breakthrough (probability low). Do not average down against the trend:
Never average down to dilute the cost! MACD death cross + Bollinger Bands opening downwards poses great risk; averaging down could lead to worse losses.
Worst Case Response
If it breaks 0.643: decisively stop loss! The next support is at 0.635 (previous low), and the downside space is over 3%. Holding on could lead to greater losses.
If it breaks through 0.662 with volume: death cross invalidated, you can hold and wait, but the probability is low (needs a large bullish candle to reverse).
Key Mindset
Being stuck in a trade is like being on fire; first cut off the oxygen (stop loss), then grab the valuables (reduce position), instead of rushing in (averaging down)! Protecting the principal gives a chance for recovery. Trapped and unable to get out? Follow me to break through the predicament.
