Shorting should not be done blindly; you need a method. Here, I’ll break down a practical three-step rule.
**Step 1: Confirm the trend is downward**
Don’t rely on feelings. Look at the structure. What is a bearish structure? Higher highs are being lowered, and higher lows are also being lowered. What does this indicate? The bears have completely taken control of the rhythm. But if the price is still bouncing up and down, oscillating back and forth, then it’s not an opportunity—don’t act.
**Step 2: Wait for a rebound to the resistance level**
A rebound after a decline is inevitable. The key is not to chase the fall but to wait. Wait for what? Wait for the price to bounce back to the previously broken support level. This level will now turn into resistance—that’s the "support-resistance switch." The advantage of this approach is clear: the position is well-defined, stop-losses are easy to set, and you avoid getting caught in a false breakout or being trapped by a rebound.
**Step 3: Wait for confirmation signals**
Being in position doesn’t mean you can short immediately. You also need to look for signals. What signals? A large bearish candle crashing down indicates strong selling pressure; or a gravestone doji, which shows a failed attempt to go higher and gets pushed back down. The key is that these signals should appear near the resistance level, not just any random candle.
**In summary**: The trend tells you the direction, the structure gives you the precise entry point, and candlestick signals provide the timing. All three must be in place to short; missing any one of them means you should just watch and not risk real money.
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ApeWithNoChain
· 01-09 01:42
Well, that's a good point, but in actual operation, the second step is the easiest to get trapped, and the rebound positions are often very frustrating.
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BakedCatFanboy
· 01-09 01:31
That's right, I used to get caught up in empty trades before. Now I memorize these three steps, and they really work.
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PaperHandsCriminal
· 01-09 01:22
Nice words, but in reality, I'm the one who can't wait. I often want to act as soon as I get in position, but end up getting hit by a rebound. Now I've become a paper hand...
Shorting should not be done blindly; you need a method. Here, I’ll break down a practical three-step rule.
**Step 1: Confirm the trend is downward**
Don’t rely on feelings. Look at the structure. What is a bearish structure? Higher highs are being lowered, and higher lows are also being lowered. What does this indicate? The bears have completely taken control of the rhythm. But if the price is still bouncing up and down, oscillating back and forth, then it’s not an opportunity—don’t act.
**Step 2: Wait for a rebound to the resistance level**
A rebound after a decline is inevitable. The key is not to chase the fall but to wait. Wait for what? Wait for the price to bounce back to the previously broken support level. This level will now turn into resistance—that’s the "support-resistance switch." The advantage of this approach is clear: the position is well-defined, stop-losses are easy to set, and you avoid getting caught in a false breakout or being trapped by a rebound.
**Step 3: Wait for confirmation signals**
Being in position doesn’t mean you can short immediately. You also need to look for signals. What signals? A large bearish candle crashing down indicates strong selling pressure; or a gravestone doji, which shows a failed attempt to go higher and gets pushed back down. The key is that these signals should appear near the resistance level, not just any random candle.
**In summary**: The trend tells you the direction, the structure gives you the precise entry point, and candlestick signals provide the timing. All three must be in place to short; missing any one of them means you should just watch and not risk real money.