In the past few days, the market has continued to fluctuate and rebound, but the cup I have is still very tight.

There is still a distance to the position where I can short, and the distance to the reversal is even farther.

Today I want to focus on discussing why I currently value right-side trading and trend trading.

In trading, traders usually face two core choices: left-side and right-side prediction of turning points.

Left-side: Imagine a knife falling from the table, and you try to catch it before it hits the ground. If you catch it accurately, you buy at the lowest point, which is cool; but more likely, your hand gets cut (catching a flying knife).

Right-side trading: You watch the knife fall to the ground, bounce a few times, and then stop moving. Once you confirm it is safe, you pick it up. Although the knife is slightly higher when you bend down to pick it up than when it fell, the probability of you getting injured is much lower.

The core logic on the right side is that we do not predict the future; we only confirm facts. When the price breaks through a downward trend and starts to rise steadily, we buy on the right side of the 'V' shape.

So the question arises, why is it that once the price of Bitcoin breaks a certain level, it is very likely to continue rising? This is not metaphysics, but rather because there are two forces in the market that are 'forced' to help lift you.

1. Above the resistance level, due to the lack of historically dense trading areas, there are very few people willing to sell at that price. Therefore, when the price breaks through, even a small number of buy orders can push the price up significantly. This 'no resistance rise' is the reason for the rapid increase in price after a right-side breakout. Once the price crosses the resistance level, it is like floodwaters breaking through a dam, accelerating across a plain without obstacles.

2. Additionally, in cryptocurrency, the trading of contracts actually holds a very dominant position, which introduces the extremely important short squeeze mechanism. When the price of Bitcoin hovers below a certain resistance level, shorts will establish a large number of short positions and set their stop-loss orders above the resistance level. One important point to note here is that: the stop-loss orders of shorts are essentially market buy orders.

The funding rate is also a key indicator for determining squeezes. If the price is rising but the funding rate is negative, it indicates that not only is the market rising, but most people are also shorting. This means that there is plenty of 'fuel,' and the future upward momentum comes from the covering of these trapped shorts. This trend is often the most explosive (you can check the Weibo post from yesterday).

Of course, if you are preparing for right-side trading + trend trading, there are still many theories and intricacies, such as the 200-day moving average, bull-bear demarcation line, golden cross and death cross, directional indicators and trend strength, RSI, AASI, and so on.

In summary, right-side trend judgment is not triggered by a single indicator, but rather by the resonance of many core signals (this point will be discussed separately later).

In this uncertain market, right-side traders abandon the vanity of 'buying at the lowest point' in exchange for the calmness of 'standing on the side of the trend.'

As Livermore said: 'Making big money is never about frequent buying and selling, but rather about holding patiently.'