TradingView charts (long-term and short-term) show that the market is currently in a phase of *high volatility and consolidation (sideways movement)* It can be risky to trade in this situation, but some cautious strategies can be adopted:
Key Observations:
1.Long-Term Chart
- Price is consolidating around $117,864.
- RSI (73.58) is in the *overbought* zone (70+), which signals a correction.
- Volume is low (14.28K), which indicates weakness in the trend.
2. Short-Term Chart
- Price is trapped in a narrow range of $117,871 ($1,000).
- RSI (62.79) is in the neutral zone but volume is very low (1.23K).
- Immediate support is seen at $117,000 and resistance at $118,500.
How to trade in such a situation:
1. Breakout Trading (Safest)
*Entry* When price breaks above $118,500 (resistance) with **strong volume* then go LONG. If $117,000 (support) breaks below, then go SHORT.
*Stop Loss* Below ₹117,500 in LONG trade; above $118,000 in SHORT.
Target* Previous swing high/low (e.g., $120,000 or $115,000).
2. Range-Bound Strategy (Consolidation Phase)
Buy near Support**: Buy in zone of $117,000–117,500, SL $116,500.
Sell near Resistance*: Sell at $118,300–118,500, SL $119,000.
*Target 80-100% of range size ($800–1,000 profit per trade).
3. Reversal Setup (RSI signal)
- RSI is 73+ (overbought), so look for *short opportunity
- For confirmation: Look for Bearish candle pattern (e.g., shooting star) or volume spike.
- SL: 1% above resistance (e.g., $119,000).
Important Precautions:
- **Avoid Low Volume**: Breakout can be false if volume is low. Trade only when volume is 2x.
- **Match Timeframe**
- Long-term chart is giving bearish signals (overbought), short-term consolidation is visible. Trade on H1/H4 timeframe.
-Check the news* In such a situation, unexpected news can cause a sharp move. Check the calendar.
- Keep the position size small Volatility is high, so do not risk more than 1-2% of the capital.
Ideal plan for today:
> "The market is not showing a clear trend yet. Wait in the range of $117,000–118,500If there is a breakout, follow it, otherwise trade at the edges of the range. If you open a trade, use a strict SL."$
Final Advice:
If the market direction is not clear, then no trade is the best trade. Be patient and wait for a strong signal. 📉📈
