🧵 Part 20: What is a pullback and how to take advantage of it to enter a crypto better? 🔁📉
1️⃣ What is a pullback?
It is a pause or small drop within a larger trend (whether upward or downward). It is not a trend change, but rather a "breath" of the market.
2️⃣ Why are they important?
Because pullbacks provide safer entries and better prices. Instead of chasing the high price, you wait for it to "drop a little" and buy at a discount.
3️⃣ How to identify a healthy pullback?
🔹 In an upward trend:
The price rises, but occasionally corrects a bit (for example, -10% or -20%) before continuing to rise.
🔹 In a downward trend:
It may rise momentarily, but then continues to fall.
4️⃣ Tools that help you:
✅ Fibonacci:
One of the most used. The levels 0.382, 0.5, and 0.618 are key to detecting pullbacks.
✅ Moving averages:
Many times the price bounces on the EMA 20 or EMA 50 during pullbacks.
✅ Dynamic support:
Trend lines or previous areas where the price bounced can act as a brake on the pullback.
5️⃣ How to take advantage of them?
🔸 If you are in an upward trend and the price pulls back to a support or key area = buying opportunity.
🔸 Use confirmation with volume or hammer / bullish engulfing candles.
🔸 Do not enter without a stop loss! A pullback can turn into a drop if not controlled.
📌 Tomorrow in Part 21:
👉 I will explain what an "accumulation zone" is and how to detect it before a crypto explodes 🚀
🔁 If you found value in this, share it with others who are learning technical analysis. This is built step by step! 💪📈
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