$WCT SPOT TRADING STRATEGY
Strategy for Spot Traders Using Lower Highs
1. Identify the Downtrend:
The chart shows a recent high at $0.3842, but the price failed to go higher. This is a lower high, signaling bearishness.
2. Wait for a Lower Low or Double Bottom:
Price previously hit a low at $0.3691. If price dips near $0.3700–$0.3680 and shows signs of support or RSI divergence, that’s a better spot entry.
3. Entry Point:
Enter a buy position near $0.3700 only after bullish reversal signs (e.g. long wick, bullish engulfing candle, or RSI < 30 rising).
4. Take Profit:
Target near the resistance or previous high area at $0.3840–$0.3870.
5. Stop Loss:
Set a stop loss below $0.3680, around $0.3650, to protect from breakdowns.