Having been in the cryptocurrency market for ten years, I understand that accurate insights into trends are crucial for profiting in the market. Today, let's analyze the 4-hour chart of the SOL contract and explore the money-making opportunities within.
## One, Trend Structure and Volume-Price Verification
### Channel and Indicator Perspective
From the 4-hour chart, SOL is in a relatively clear upward channel (bounded by two blue trend lines). The price is oscillating upwards within the channel and is currently approaching the upper edge. The MACD indicator's dual lines are operating above the zero line, and the bullish momentum bars show signs of gradual expansion, indicating strong bullish forces.
### Volume Signal
During the price pullback to the lower edge of the channel, the trading volume significantly decreased, indicating that selling pressure is easing; during the rebound phase, the trading volume moderately increased, suggesting that funds are actively entering to support the price, further validating the effectiveness of the upward trend.
## Two, Multi-Period Resonance Signals
✅ Daily: SOL price is steadily rising based on the EMA moving average system, in an upward trend on the daily chart, with a positive medium-term trend.
✅ 4-hour: The upward channel support and resistance are clear, and the EMA moving averages show a bullish arrangement, providing strong support for the price from the short-term moving averages, indicating good trend continuity.
✅ 1-hour: Although there are minor-level pullbacks, there are no signs of a top divergence, and the price can quickly recover lost ground, indicating that the bulls dominate intraday.
## Three, Operating Suggestions
### Entry Logic
Based on the support of the upward channel and the bullish signals of multi-period resonance, when the price pulls back to the lower edge of the channel (roughly in the 198 - 200 area, combined with the support of the EMA50 moving average), it is a relatively ideal time to enter a long position, conforming to the trading model of 'trend continuation + support confirmation'.
### Specific Operations
1️⃣ **Entry Range**: 198 - 200
2️⃣ **Stop Loss Setting**: Valid breach below the lower edge of the channel and confirmed with a 1-hour close, set the stop loss at 195 to control potential risks.
3️⃣ **Target Level**:
- Short-term: Look towards the upper edge of the channel, around the 210 - 212 area; if a valid breakout occurs, it may open further upward space.
- Medium-term: Pay attention to the 220 - 225 area, which is a key resistance level on the daily chart.
4️⃣ **Position Management**:
- The first entry can invest 50% of the position, entering when the price pulls back to the support area.
- When the price breaks through the short-term resistance level (e.g., 205), with increased trading volume, an additional 30% can be added to the position.
- Reserve 20% of the position as a contingency fund for extreme situations; if the price experiences an unexpected sharp pullback, additional purchases can be made after confirming the support is effective.
## Four, Dynamic Risk Control and Signals
▶️ **Key Defensive Line**: The bullish defense level is at 195; if this level is effectively breached, be cautious of a potential trend reversal and consider exiting to observe.
▶️ **Acceleration Signal**: When the 4-hour close effectively breaks the upper edge of the channel, and the trading volume increases by more than 30% compared to the previous phase, it can confirm the start of a main upward wave, and the position can be appropriately increased.
▶️ **Time Window**: If the price does not show a significant rebound within 3 four-hour candles after pulling back to the support area, reevaluate the current trend and consider reducing the position or exiting.
In cryptocurrency trading, grasping the trend is key. By closely following the channel structure and technical indicator signals of SOL, we can better capture bullish trends and achieve stable profits. Follow me for more insights into the trend codes of various cryptocurrencies!#solana