Crypto Trading Strategy for TOKEN/USDT
Market Context: The
#TOKEN /USDT pair is showing high volatility today, with strong bullish momentum driven by recent project updates and broader market recovery. Key levels to watch: support at $0.85, resistance at $1.05.
Strategy: Swing Trading with Breakout Confirmation
Entry Point:
Long Position: Enter a buy order if TOKEN/USDT breaks above $1.00 with a strong 15-minute candle close and volume spike (>2x average). Set a limit order at $1.01 to avoid slippage.
Short Position: If the price fails to break $1.05 and reverses with a bearish engulfing pattern, short at $1.03, targeting a pullback to $0.95.
Stop Loss:
Long: Place stop loss at $0.97 (below the breakout confirmation level).
Short: Set stop loss at $1.07 (above resistance).
Take Profit:
Long: Target $1.10 for partial profit (50% of position), let the rest run to $1.20 if momentum persists.
Short: Target $0.95 for full exit or trail stop to lock in gains.
Risk Management:
Risk no more than 1-2% of your portfolio per trade.
Use a 1:2 risk-reward ratio minimum.
Monitor USDT dominance and BTC price action for broader market cues.
Indicators:
RSI (14): Look for RSI > 60 for longs, < 40 for shorts on 1-hour chart.
MACD: Confirm entry with bullish/bearish crossover on 30-minute chart.
Volume: Ensure breakout or reversal is backed by above-average volume.
Timeframe:
Focus on 15-minute to 1-hour charts for entry/exit.
Hold trades for 4-12 hours unless targets are hit early.
Tips:
Stay alert for sudden news or whale movements; adjust stops dynamically.
Avoid over-leveraging; volatility can trigger liquidations.
Reassess at 6 PM EEST for evening market shifts.
Why It Works: This strategy capitalizes on breakout momentum while protecting against false moves with tight stops and clear confirmation signals.
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