ETH brothers and sisters, I want to emphasize again that we are still in a sideways consolidation zone.

1. This sideways zone started back on April 20th, meaning ETH has been consolidating for 22 days.
The upper boundary of this zone is at 2400, and the lower boundary is between 2250 and 2260. There might be some piercing above or below.
2. In a sideways consolidation zone, unless you are very patient and always wait to go long at the lower boundary and short at the upper boundary,
then you can make a small trend of 3 to 5 days.
There is no big trend here, and it’s impossible to get everything right with just one trade.
At least, I don’t consider that a valid approach in a sideways zone.
3. Since most people are not very patient, and of course hope to have trades every day,
this is understandable. Not everyone can monitor the market constantly, waiting for the price to reach the upper or lower boundary.
Go short at the upper boundary, go long at the lower boundary.
Sometimes the opportunity might come in the middle of the night. Or if you’re not a full-time trader, working, attending meetings, eating, resting, you might miss it.
4. When trading in a sideways zone, my personal habit is to often hedge.
The best is when the cost of shorting is higher than going long, but it’s okay if not.
Wait for the trend to reverse and then readjust.
Hedging in a sideways zone isn’t perfect, but there will be opportunities to adjust.
In future live streams, I will also advise brothers and sisters to hedge as often as possible in sideways zones, and I will suggest hedging methods.
5. Do you need hedging in a trend?
I personally do. We can discuss this topic in detail later.
When you don’t have much margin, hedging is the best solution.
If you have enough margin, you have more options.
After all, hedging is a bit more troublesome and requires monitoring the market frequently.
6. In a sideways zone, good hedging can protect against liquidation.
When I was a rookie, liquidation was common, and I often didn’t even know why I got liquidated.
Even with small positions, it was a blow to confidence.
Learn to hedge to protect against liquidation. No matter how volatile the market or how extreme the trend against your expectations, you won’t panic.
Instead, you’ll have enough space to maneuver.
Most retail traders have limited margin, so if you have hundreds of thousands of US dollars in margin, and you’re not greedy, the big players can’t easily blow you out.
But most people don’t lack the conditions for that. 😂☕ $ETH