WLFI Morning Review 👇
This morning, WLFI followed the plan to take profit on short positions in the 4-hour cycle and locked in the profits from this decline.
There are two reasons:
4-hour cycle
The price has quickly broken through the lower boundary of the previous consolidation area, and the short-term decline is significant. Continuing to short could worsen the risk-reward ratio.
1-hour cycle
Although the candlestick has not yet provided a clear signal of a bottoming out, it has entered an oversold zone, and there is limited space for further decline. It is more likely to see a technical rebound first before choosing a direction.
My thinking is:
After this wave of decline in the 1-hour cycle ends, wait for the price to rebound back to the 20-period moving average range to look for short opportunities;
Currently, the 1-hour yellow 20-period moving average (light yellow EMA20, dark yellow MA20) has not yet crossed below the 120-period moving average (light gray EMA120, black MA120), so the bearish trend has not fully opened up. Therefore, it is more suitable to 'harvest first, then wait' here, rather than chasing shorts when emotions are extreme.
If we later see the 20 cross below the 120, and a true bearish alignment is formed, then considering a swing short position at that point would be more comfortable.
The above is my rhythm arrangement for the current structure of WLFI: first take profit, wait for a rebound, and then choose the right time to short.
This is just a personal trading record and does not constitute any investment advice.
$WLFI
{future}(WLFIUSDT)
