🧠 An easy-to-understand short-selling structure—Three steps

Step 1: Confirm the decline first: it's not just a feeling of falling, but the structure is declining. How to see? Higher highs are getting lower, and lower lows are also getting lower, indicating that the bears have taken control of the direction.

⚠️ If the price is still oscillating back and forth, do not short.

Step 2: Wait for a rebound, do not chase the fall. After a decline, the price will definitely rebound. Where to focus? When the price rebounds to the previous break level, this level was support before, now it has become resistance (see my post yesterday for resistance and support confirmation). This step is called: resistance and support switch. The benefits are: ✅ clear levels ✅ easy to set stop-loss ❌ avoid blindly shorting at mid-range.

Step 3: Wait for the “sell signal” to appear: in position ≠ able to short, also need a “signal”. Common short-selling signals: large bearish candle (indicating direct selling pressure), gravestone doji (failed to break high, pushed back down).

Location of the signal: just near the resistance level, not just any candlestick.

🎯 In short, one sentence: the trend tells you the direction, the structure gives you the position, the candlestick gives you the timing. All three appearing together is the “signal to short”; missing one means it’s just “bearish outlook, no trading”.