On the short side of the market, if the amplitude narrows, you should be more cautious when going long or short. At this time, it’s either going to overflow upward or drift downward—both can happen at the same time, which means both ends of a line segment get extended. For example, yesterday, within 24 hours, ETH’s high was 1610 and its low was 1561, and the amplitude was compressed into a tight range of just 49 points. In that case, you shouldn’t open positions based on Fibonacci retracement. And because the time point is at the end of the month and the beginning of the month, normal rebounds will be somewhat suppressed. In that situation, it’s very likely that the price will overflow into the resistance point above 1610 and also drift into the support point below 1561. But since you don’t know how much it will overflow or how far it will drift downward, take profit on a low long a bit earlier, while for short entries you should try to enter as high as possible (watch take profit and stop loss at a relatively low level).

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