Trading Mistakes Review:

I originally planned to short near the resistance level at around 93,600 BTC, but when I woke up in the morning, the price had only reached about 93,380. So I entered a short position at that level.

The entry logic was clear—when EMA 7 crosses below MA 30 at a high level, it usually indicates a short-term correction is beginning. Therefore, I established a short position on the 5-minute chart.

The reason for the stop loss is a bit awkward. At that time, the moving averages hadn't fully formed a death cross. When the price moved upward, I thought I had judged incorrectly, panicked, and emotionally closed the position. In reality, I hadn't even reached the set stop loss level—this is the cost of not strictly following the trading plan.

Another issue was that I wasn't paying close attention to the chart. When the second tombstone candle appeared, the third candle formed an engulfing pattern, and the moving averages fully formed a death cross, I should have decisively reopened the short position.

The retracement on the 5-minute chart is indeed limited, but there's an important insight—if the same EMA 7 and MA 30 death cross signals appear on higher timeframes, especially when the price is at a high level, the correction can be quite significant. The profit potential is considerable, and the win rate for shorts is much higher. For example, the weekly chart around November 3rd is a typical case.

This kind of downward pattern is actually quite common. The key is to evaluate the significance of signals based on different timeframes and not to be misled by noise on lower timeframes.