1. Analyze the current situation
- Last price: 0.23988 (+1.06%)
- 24h range: 0.22244 (min) — 0.24496 (max)
- Volumes: High (9.06 billion DOGE, 2.14 billion USDT)
- Indicators:
- EMA(50): 0.20029 (price above EMA, indicating an uptrend).
- RSI(14): 64.2 (approaching overbought zone, but not yet reaching 70).
- MACD: Positive (DIF > DEA), but weak (histogram close to zero).
2. Safe strategy
- Type of strategy: Conservative, based on trend and confirmation of signals.
- Timeframe: 4h or 1d to reduce market noise.
Entry rules:
- Buy (Long):
1. Price above EMA(50) (confirmation of uptrend).
2. RSI(14) < 70 (avoid overbought conditions).
3. MACD histogram above zero and rising (DIF > DEA).
4. Volume confirmation: increase in volume with rising price.
- Example of entry point: Bounce from support (e.g., 0.23500) or breakout from resistance (0.24500) with volume.
- Sell (Take Profit / Stop Loss):
- Take Profit 1: 0.24500 (nearest resistance).
- Take Profit 2: 0.25973 (next resistance level by EMA).
- Stop Loss: 0.22244 (minimum 24h) or below EMA(50) (0.20029) for more aggressive risk management.
Protective measures:
- Risk management:
- Risk per trade: no more than 1-2% of the deposit.
- Risk/reward ratio: at least 1:2 (e.g., SL 1%, TP 2%).
- Avoid:
- Trading near RSI > 70.
- Trades during low volume or sideways movement (price between 0.22244 and 0.24496 without a clear trend).
3. Additional tools
- Filtering false signals:
- Wait for the 4h/1d candle to close above key levels.
- Use horizontal support/resistance levels (e.g., 0.23500, 0.24500).
- Alternative scenario:
- If the price drops below EMA(50) and RSI < 30, consider buying on the bounce.
4. Example trade
- Entry: 0.23500 (bounce from support).
- Stop Loss: 0.22244 (-5.3% from entry).
- Take Profit 1: 0.24500 (+4.2%).
- Take Profit 2: 0.25973 (+10.5%).
- Risk/Reward: 1:2 (at TP1) or 1:4 (at TP2).
5. Important!
- DOGE is a highly volatile asset. Adjust SL/TP levels during sharp movements.
- Avoid trading before major news (hype, listings, etc.).
- Diversify the portfolio (do not invest all funds in DOGE).
This strategy minimizes risks by confirming the trend, filtering overbought conditions, and strict risk management.
