October 10th Monday Evening Trading Strategy

Waking up in the morning and immediately collecting profits feels great. I was busy today and didn't post! Short-term Bitcoin update! The 10.6K key level sees bulls and bears battling; precise levels to follow for quick trades.

The 4-hour chart has surged past 10.6K, with a 24-hour increase of over 4.5%. However, overbought signals are flashing, so short-term traders should avoid blindly rushing in. Use clear entry points and risk controls, and follow the plan.

Let's look at the core short-term signals: Moving averages are in a bullish alignment supporting the price, MACD has a golden cross with increasing volume, and the upper Bollinger Band has been broken and stabilized. Capital continues to flow in, indicating a bullish trend. But RSI has soared above 85, and KDJ J value hits 100, signaling serious short-term overbought conditions, which could lead to a minor pullback—this actually presents a better entry opportunity.

Short-term Long Position

Entry: Buy in batches around 106200-106500. Add to positions if the price pulls back to around 105800 (near MA5). This is the safest entry point. Avoid chasing above 10700!

Stop-loss: Below 105200, with about 2% risk. Maximize short-term tolerance to prevent being shaken out by minor pullbacks.

Take profit: Two targets—take half profits at 107500, close all at 108200 (resistance level). Quick in and out, no greed.

Short-term Short Position

Entry: Only consider shorting if the price hits resistance at 108200-108500, confirmed by long upper shadows or bearish engulfing candles, or if it breaks below 105600 with increased volume. Use small positions for shorting.

Stop-loss: Above 109000, with tight stops. In strong bullish markets, shorting risks being squeezed by bulls—avoid overconfidence.

Take profit: Take half profits at 106000, close all at 105500. Exit quickly when the trade is good, avoid holding on too long.