Recently, I completed a relatively full trading cycle on a popular project, gaining insights both technically and psychologically. Sharing with everyone.

From the daily K-line perspective, from December 5th to December 16th, a clear golden pit pattern was formed, and there were obvious signs of a pre-market test. Subsequently, the market entered a strong rally lasting 9 days, but the bullish momentum has shown signs of exhaustion recently.

When a long upper shadow appeared on December 25th, I realized that a potential high point signal had emerged, so I opened a short position. That day, the market indeed performed strongly, dropping by 25%. Although I entered the short at the bottom, which made me a bit nervous, I still captured the main decline.

Interestingly, the next day, after the project team’s official website released contract sharing information, the market staged a V-shaped reversal, with the price violently bouncing back near the upper shadow. But the key is—it did not break through the past high. The nighttime decline boosted my confidence, and I decided to add to my position at the low, continuing to look for a short opportunity.

My current trading plan is as follows:
- Strategy: Hold the short position long-term
- Stop loss set at 0.5
- Partial profit-taking and stop loss at 0.46, selling half of the position here
- Take profit target around 0.3

The key to this market movement is confirming the high point, identifying false rebounds, and then patiently waiting.