📈 THE ART OF KNOWING WHEN TO SELL #CryptoCurrency
🧠 Key rules for you as a trader
- Don't sell just because the price is going up. Let your profit run until the market tells you something has changed.
- Strategy based on structure > emotions: following a market narrative gives you consistency.
Pay attention to and follow the sequence of highs and lows:
- HH (Higher High): A new high that is higher than the previous one, indicating buying strength.
- HL (Higher Low): A higher low, confirming that buyers are in control.
When the price breaks a previous HH and forms a new HL respecting structure, the bullish continuation is confirmed.
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🎯 General Strategy for Selling
Here is a step-by-step strategy based on technical analysis:
1. Identify the bullish structure
- Wait for the price to break the previous resistance and form a confirmed new HH.
- Make sure there is a clear HL backing that HH: this indicates strength.
2. Smart entry
- Take advantage of the retest of the support or the bullish pattern (like the bullish pennant) to enter. This is the point with the least risk and best risk/reward ratio.
3. Place your stop-loss
- Just below the last HL. If the price breaks that HL, it is likely that the structure is failing.
4. Plan your exit (take profit)
- Watch previous resistance levels or key psychological zones.
- You can use tools like Fibonacci Extensions or projections based on waves to set targets.
5. Signals to consider selling
- Loss of momentum: candles with long upper wicks, rejection of levels, decreasing volume.
- Failure to make a new HH after a recent HL.
- EMA crossover down (for example, if the price falls below the EMA 200).
- Confirmation of a reversal pattern (double top, head and shoulders, structure break).
👀 Follow me and let's help each other. Tell me what technique you use?