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Yesterday's long position was successfully closed at 3270, but I lost on the short side. Today, the short position has been recovered around 3270, but I have temporarily given up the idea of going long at this key robot algorithm level of 3270. The reason is simple—more and more people are entering long positions at high levels. Looking at the market, most people believe the bull market has returned. When this sentiment accumulates to a certain point, it can trigger a fierce wave of profit-taking at any moment.
If I had to go long at this point, my approach would be as follows: I must wait for a rebound to touch a densely clustered short order zone, eat the short positions' chips, and then follow up with a long position. Yesterday's 3170 was such a level—whenever the price touches the cluster of short orders, a long opportunity arises. The benefit of this approach is that it can absorb the short stop-loss orders, forming a relatively stable support, rather than chasing longs at high levels, which is too risky. The key is to respect the rules of chip distribution and wait until the true handover of power between the two sides occurs before taking action.