A *profitable trading strategy* depends on your experience, capital, and how much time you can dedicate daily. Here’s a simple yet effective *beginner-friendly trading strategy* that many traders use on *Binance spot trading*:
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📊 *The 3-Step RSI + Support/Resistance Strategy (For Spot Trading)*
✅ Timeframe: 1-hour or 4-hour chart
✅ Ideal for: Short to mid-term traders (swing or day trading)
✅ Tools Needed: RSI indicator, support/resistance lines, Binance chart
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🧠 *How It Works:*
1. *Find a Good Coin (With Volume)*
- Look for coins with strong volume and volatility (e.g., BTC, ETH, SOL, AVAX).
- Avoid low-liquidity coins as they’re riskier.
2. *Use RSI (Relative Strength Index)*
- Open the coin’s chart on Binance → Add RSI indicator.
- Look for:
- *RSI below 30* = *Oversold* (potential buy zone)
- *RSI above 70* = *Overbought* (potential sell zone)
3. *Support & Resistance Zones*
- Draw *horizontal support (bottom)* and *resistance (top)* lines.
- Buy near strong support zones + RSI below 30.
- Sell near resistance zones + RSI above 70.
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📈 *Example Trade (Using AVAX):*
- Coin: AVAX
- Support Level: 34
- Resistance Level:39
- RSI drops below 30 at 34 → *Buy*
- RSI rises above 70 at38–39 → *Sell*
