Why do you always see a drop when buying at a rise and a rise when buying at a drop? The answer is simple: because your buying logic is trapped in your own limited approach. Currently, after the V reversal, the market has been in a sideways consolidation for 3 days, with neither bulls nor bears achieving success. Therefore, we need to consider whether this wave of consolidation is building a new bottom or luring traders to go long.
In my view, the prolonged sideways movement after the V reversal suggests that if it were to continue upward, it would have done so earlier. More likely, it is enticing you to enter the market. The subsequent movement has not yet completed its consolidation, and the market still needs to be bearish. Enough said, let’s get straight to the point.
Short near BCH 416.6-421.6 Additional position: To be determined in the comments section
First tier: 406.6-411.6
Second tier: 396-401.6 Pattern level: 386