#MarketPullback

Three tips to survive and take advantage of a pullback?

The pullback in the crypto market is a temporary correction movement within a prevailing trend. This phenomenon is common and can be an opportunity for traders to enter or exit the market at strategic moments.

Correct identification: Use charts and technical analysis to recognize pullback patterns and avoid confusing them with reversals (see how to differentiate in the bonus).

Risk management: Since the crypto market is volatile, entering with a low amount, low leverage, or setting a stop-loss minimizes losses if the movement does not materialize.

Attention to volume: Movements accompanied by low volume may be less reliable, while those with high volume indicate a stronger recovery.

Bonus:

Pullback:

- The price briefly retreats before resuming its original trajectory.

- Usually occurs in support or resistance zones.

- Trading volume tends to be lower during the retreat.

Trend Reversal:

- The price breaks important levels of support or resistance.

- Accompanied by high volume and changes in technical indicators, such as RSI and MACD.

- Can be confirmed by candle patterns, such as “inverted hammer” or “shooting star” (in the image).

Good luck.

Protect Your Capital 🚀