Greetings Viewers,
Today, I want to share briefly how to find next coin before breakout. For this approach, we are concentrating on taking advantage of coins currently trading on low volume range between $200k - $1M. The market trading psychology behind this is to take advantage of low trading volume, seating a buy position before high market volatility engagement.
Caveat: It's recommended not to seat Margin or Futures (Long or Short) with this approach because inccicdental market movement or swing in opposite of the current trading direction seated can lead to liquidation easily. If you must seat a margin or futures (Long or Short). Make sure to implememt risk managememt such as stop-loss [SL] or unless you know what you are doing.
Now let's proceed after knowing the above stated conditions. From your binanace market dashboard showing list of actively trading pairs, tap the "vol" section to toggle down or up sorting the currently trading pairs volume in ascending or descending order. Also, you can easily scroll up or down to check actively trading pairs on low volume.
KEY:
Low trading volume are due to less trading activing with such pairs. At this condition, whales are seeding:
- Means whales, smart money or market movers are currently buying at gradually at low ration so as not to tigger uneccessary high price volatility.
After these markets movers have completely seeded, they will start to trigger high price volatility by buying high ratio so as to push the market price to hit their respective preset take profit [TP] target, this is a market process of trading side along with smart money.
If you have duely followed the process to this point, before you seat a position make sure you confirm a good entry using:
- Time-Frame: Look down from 1Month - 15 Mins, confirming that the market is currently trading at it low or close to the previous all time low [ATL].
- Storch-RSI or RSI: Checking overbought or oversold conditions below 0 - above 80.
- MACD: Check for current convergence or divergence below or above the 0 line.
Note: Trading under these market conditions are extremely volatile so you have to preset sell order by confirming last price reversal to bearish. These are key areas you should consider taking your profit gradually unless you know what you are doing.
Trading is not a rocket science but recognising market behavioral pattern psychologically are essential to lead on.
This post is soley on my personal trading experience, not AI generated. Trading the crypto market carries it own risk just like every other day to day businness. The essence of this post is to simplify the complexity of crypro trading such that a day old trader can graps.
If you find this post helpful, kindly ensure to share and follow me for more first hand compass that will grant you successful trading journey. You can also check my previous post for more explanations that can help you as a beginner, intermediate or professional trader.
🙏Namaste🙏
