#ETHCrossed2500

The chart for OBOLUSDT displays a classic Spike Bottom (V-shape reversal) pattern. This is characterized by a sudden, sharp drop (large red candle), followed by an equally sharp recovery (green candles), forming a distinct "V" shape. The spike is confirmed by high trading volume at the bottom, indicating capitulation and a potential reversal point41.

How to Trade This Pattern for Bigger Reward

1. Wait for Confirmation:

Do not enter immediately after the spike. Wait for a bullish candle to close above the low of the spike, confirming the reversal4.

2. Entry Point:

Enter a long (buy) position once a green candle closes above the spike low and shows sustained buying interest.

3. Stop-Loss:

Set your stop-loss just below the lowest point of the spike to manage risk4.

4. Take Profit:

Target the next key resistance levels-often previous support levels before the drop, or use Fibonacci retracement levels for more precision.

5. Volume Confirmation:

Ensure the reversal is accompanied by high volume, which adds strength to the move and reduces the risk of a false bounce41.

Summary Table

StepActionWaitFor bullish confirmation candle above spike lowEntryBuy on close above confirmation candleStop-LossJust below the lowest spike pointTake ProfitNext resistance or previous support zoneVolumeLook for high volume on reversal for added confirmation

Pro Tip:

For bigger rewards, consider scaling out profits as price approaches multiple resistance levels, and trail your stop-loss to lock in gains as the move continues.

This approach maximizes reward by entering after confirmation, controlling risk, and letting profits run during a strong reversal.