Alright, classmates, today we are going to take a look at the 4-hour chart of FLOCK/USDT.
Looking at **FLOCK/USDT**, please pay attention to the **Bollinger Bands** reaction... When the upper and lower bands of the Bollinger Bands start to converge, we call this a "Squeeze." This usually indicates that market volatility is decreasing, the price is entering a consolidation period, and is building up energy for a significant price movement—whether it breaks upward or downward. You can think of this as a compressed spring that will eventually release. Currently, the price is touching the lower band of the Bollinger Bands, which usually acts as a dynamic support. Therefore, we are looking for an opportunity to rebound from this support level.
**Why do we set the stop loss at this position?**
We set the stop loss at **0.0910** for specific reasons. This price level is slightly below the lower band of the Bollinger Bands (around 0.0919) and the recent candlestick low. The logic behind this setup is: if the price decisively breaks below this key support area, it means our assumption of "the price will rebound" is incorrect, and the downtrend is likely to continue. Therefore, we set the stop loss there to exit in case of a misjudgment, keeping our losses within an acceptable range to protect our capital.
**Example of trade setup:**
- **Entry Price:** 0.0950 (waiting for the price to pull back near the lower band)
- **Target Price 1:** 0.1005 (Bollinger Bands middle band)
- **Target Price 2:** 0.1090 (Bollinger Bands upper band)
- **Stop Loss Price:** 0.0910
**Tip:** Always manage your risk according to the trend of the 4-hour chart.
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