The equilibrium zone or "Equilibrium" is a fair value level in the market. The price tends to bounce back and test this zone because that's where supply and demand are in balance.
To calculate it, just spot the high and the low on the chart, then find the difference between the two, divide by 2, and subtract to determine the equilibrium zone.
For example, here on
#sol , the equilibrium price is 81.1 on a 1h timeframe. The price is going to come back and test this zone!
Of course, trading isn't an exact science; the high and low can change if the price drops further, so you’d need to recalculate. That's why DCA trading will be your best ally! Always keep some liquidity to trade, a step ahead of the market, and that's how you'll succeed!
Wishing you all the best! Good luck to everyone! 💫
#strategy #Equilibrium #DCAStrategy