For the $SOL long position strategy, I'm focusing on a retest of the **S/R (Support/Resistance) level** as an entry point. This level provides a critical structure to anticipate price action, especially since it's moving in correlation with **Bitcoin’s support zone**. When $SOL follows BTC’s movement, it indicates broader market alignment, which strengthens the likelihood of this trade playing out favorably.
### Key Targets:
- **Equal Highs**: Often, when price revisits an area of equal highs, it's aimed at taking out liquidity. Here, we’re targeting the sweep of **Buy-Side Liquidity (BSL)**, where stop-losses of short positions are typically clustered.
- **Supply Zones**: After this sweep, I expect the price to face resistance near supply zones, offering opportunities to secure profits.
### Risk Management:
Normally, if the **S/R level** is broken downward, the trade would be considered invalidated. However, I’m extending my **Stop-Loss (SL)** to provide extra room for price fluctuations, as both **Market Orders (MO)** and **Whale Orders (WO)** sit lower than the S/R level. This buffer allows the trade to withstand short-term volatility while still maintaining the trade thesis.
### Why This Approach?
1. **BTC Confluence**: Since $SOL tends to follow BTC’s movements, BTC holding support strengthens the $SOL thesis.
2. **Extended SL**: A broader SL accounts for larger market players' movements (whale and institutional orders), offering more protection without exiting prematurely.
3. **Liquidity Grab**: Targeting liquidity (BSL) at equal highs is a strategy that leverages typical market maker behavior, making this setup particularly attractive.
Monitoring
BTC price action and volume closely will be critical to adjusting this position. If BTC falters, reconsideration of the entry or risk parameters will be necessary.
