Methodology for Identifying Tokens to Trade (Not Hold)
1. High Volatility
•Why: Traders need price movement to make profit.
•How to Check:
¤Look at 24h or 7d % change — you want big swings (like +10% or -10% moves).
¤Use indicators like Average True Range (ATR) to measure volatility.
2. Strong Trading Volume
•Why: You need liquidity to enter and exit fast.
•How to Check:
¤Look for tokens with high daily volume relative to their market cap.
¤Check on CoinMarketCap / CoinGecko — volume should be at least 10% of market cap daily for active trading.
3. Clear Technical Patterns
•Why: You trade based on predictable setups.
•How to Check:
¤Check for support/resistance zones, trendlines, chart patterns (like triangles, flags, etc.).
¤Favor tokens that respect technical levels nicely — messy charts are harder to trade.
4. Hype & News Sensitivity
•Why: News drives quick price spikes (good for trades).
•How to Check:
¤Tokens that react to partnerships, listings, announcements = great trading candidates.
¤Monitor Twitter, Telegram, news bots.
5. Short-Term Catalysts
•Why: Events trigger fast price moves.
•How to Check:
¤Look for tokens with upcoming events:
>Exchange listings
>Token burns
>Product launches
>Airdrops
¤Use sites like CryptoRank, CoinMarketCal.
6. Low Fundamental Strength
•Why: Tokens without strong fundamentals are less likely to be good for long-term hold, but perfect for short-term trades.
•How to Check:
¤If a token doesn't have clear utility, adoption, team credibility — better to trade, not hold.
7. Whale Activity
•Why: Big wallets moving = big short-term volatility.
•How to Check:
¤Use whale tracking tools like Whale Alert. ¤High whale activity often means trade opportunity, but not a safe long-term investment.
later i will bring information based on token you can trade and hold for long.
