Trade Strategy Analysis: Focus on Long Opportunities in the 116555 Area

1: Long position entry reference
Currently, it is advisable to pay attention to the long opportunities near 116555, as this area shows potential support logic based on short-term technical patterns: from the 15-minute, 30-minute, and 1-hour levels, a potential bottom divergence has emerged—meaning the price and the corresponding period indicators are forming inverse fluctuations, suggesting that short-term downward momentum may be slowing. If the price stabilizes in this area subsequently and there is an increase in volume after a new low, it can be taken as a signal to stop the decline.
2. Stop Loss and Take Profit Planning
- Stop-loss setting: To control risk, it is necessary to strictly set a stop-loss for long positions, preferably placed 500 points below the entry price (specific adjustments can be made based on the volatility characteristics of the asset). If the price falls below this level, it indicates a failure of short-term support, and timely exit is required to avoid larger losses.
- Take profit target:
1. The first target level is temporarily set at 120000, which is not only an important integer level from the past but also resonates technically with the upper boundary of the recent fluctuation range. After reaching this level, partial profit-taking can be considered.
2. The second target needs to be dynamically assessed based on the strength of the rebound: if the price breaks through the first target and continues to surge with increasing volume, and if the trend can be confirmed to shift from "rebound" to "reversal" (such as breaking through key resistance levels, turning points of medium to long-term moving averages, etc.), then one can continue to hold the remaining position, looking towards higher phase new highs, and adjust the take-profit level according to real-time volume and patterns.
3. Position Management Recommendations
Considering that we are still in the "testing the waters" phase and the bottom divergence has not been fully confirmed, it is recommended to control the initial position at 2%-3%. If subsequent signals of "volume surge after a new low" appear, it is advisable to moderately increase the position under the premise of manageable risk, but the total position should avoid exceeding one's risk tolerance to prevent excessive impact from the volatility of a single variety on the overall account.
4. Additional Notes
- Short-term divergence signals are easily influenced by sudden news events, so it is important to closely monitor the fundamental changes of the corresponding varieties (such as policy adjustments, supply and demand data, etc.) to avoid significant divergence between technical analysis and fundamentals.
- If the price does not form a "new low followed by a surge in volume" as expected, but instead consolidates around 116555 or experiences a slight rebound before moving down again, one should be wary of the risk of divergence failure. At this point, it is not advisable to rush into the market; one should wait for a clearer signal of a bottom.
The above strategy needs to be adjusted in conjunction with real-time market dynamics. The core of trading lies in "light positions for trial and error, increasing positions after signal confirmation, and strict stop-losses" to cope with market uncertainties.