1. What is the accumulation zone?
It is a price range where the price trades sideways (narrowly) for a period, gathering buyers and sellers without decisive movement.
📦 Example:
- The price moves between $10 (support) and $10.5 (resistance) for several days.
2. How do you enter a trade after the breakout?
Bullish breakout:
- Signal: Closing a green candle above the accumulation zone (resistance).
- Entry: Buy upon confirmation of the breakout.
📈 Example:
- Accumulation zone: $10–10.5.
- Closing the candle at $10.6 → Buy signal.
Bearish breakout:
- Signal: Closing a red candle below the accumulation zone (support).
- Entry: Sell upon confirmation of the breakout.
📉 Example:
- Accumulation zone: $10–10.5.
- Closing the candle at $9.8 → Sell signal.
3. How do you confirm the breakout?
- Time confirmation:
- Wait 5 minutes after the breakout to see if the price continues in the direction.
- Volume confirmation:
- Ensure trading volume increases during the breakout.
4. Illustration of the steps:
1. Identify the accumulation zone:
![Accumulation zone
2. Draw the resistance and support lines:
3. Wait for the candle to close outside the zone:
- 📈 Bullish:
- 📉 Bearish:
5. Golden tips:
- Use stop-loss orders
- Place it below the accumulation zone to buy, or above it to sell.
- Avoid rushing:
- Do not enter before the candle closes outside the zone.
6. Practical example:
- Scenario:
- Accumulation zone: $50–52 for 3 days.
- Closing the daily candle at $53 with increased volume.
- Decision:
- Enter a buy trade with a stop loss at $51.
Summary:
The accumulation zone indicates a struggle between buyers and sellers. A decisive breakout from it with volume confirmation is a golden opportunity to enter the market! 🚀 $BTC
Remember:
- 📊 Technical analysis requires patience and practice.
- 🔍 Always look for confirmation from other indicators (like moving averages).