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Ethereum has two viable trading strategies on the 4-hour chart, worth breaking down.
**Long Position**: The 3080 level can serve as an entry point with a limit order. Once executed, set the stop-loss at 3060 (a 20-point buffer). Profit targets are divided into two levels: the first at 3120, providing a 1:2 risk-reward ratio, which is relatively conservative; the second at 3140, achieving a 1:4 risk-reward ratio, suitable for aggressive traders.
Conversely, the **short position** logic is also clear. Place a short order at 3140 with a stop-loss above at 3160 (again, 20 points). The downward targets are also twofold: the first at 3100 (1:2 ratio), and the second at 3080 (1:3 reward).
At the execution level, several details need attention. First, always use limit orders; trades only execute when the price precisely hits the order level. Second, entry signals should be confirmed with candlestick patterns and indicators—when going long, look for a bullish candle around 3080 and RSI retracing to 55-60; for short positions, look for a bearish candle at 3140 and RSI spiking to 68-70. The most critical point: once the first take profit is reached, immediately move the stop-loss to the entry price to lock in principal safety. Subsequent profits are then purely a matter of risk management.
The core of this strategy emphasizes risk control, clear rules, and avoiding trading based on intuition.