$MERL Short "reverse trend" to catch the sell-off after overbought (must be cold + disciplined)
Trading Plan (Short)
• Entry: $0.4600 – $0.4650
• Stop Loss (SL): $0.4725
• Take Profit (TP):
• TP1: $0.4395
• TP2: $0.4181
• TP3: $0.4060 (further: $0.3735)
Why this trade exists
• RSI(12) ~82.15 | RSI(24) ~70.18: clearly overbought → the market is very likely to have a sell-off/correction to shake off FOMO.
• Positive MACD (DIF > DEA): the overall trend is still bullish → this is a short pullback (mean-reversion), not a short “crash” ⇒ SL is the rule, non-negotiable.
Price region map
• Resistance sell pressure: $0.4650 (24h high) → $0.4725
• Support to take profit by levels: $0.4395 → $0.4181 → $0.4060 (24h low) → $0.3735
Activation / invalidation conditions
• Not exceeding $0.460–$0.465: prioritize falling towards TP1 → TP2 → TP3.
• Break and hold above $0.465 (especially surpassing $0.4725): short invalid, cut exactly at SL.
This "overbought" situation often ends with a very quick sell-off — do you want to be the one placing orders at the Entry zone or the one chasing the peak for an additional candle before realizing you are paying tuition?
