📉 I opened a short at $DOGE after the strong rise of the day. Why? Let's go with the analysis:
In the 1H chart, DOGE shows a very marked bullish momentum in the last 10 candles, but it starts to show technical weakness at the highs of $0.233.
📊 Signals that triggered my entry:
RSI in overbought and loss of strength in 1H
🚀TRIGGER In the 5M chart, the price moved aggressively away from the VWAP, and it is a trade with a probability based on context that should go straight to the VWAP.
— The VWAP is a volume-weighted average, and in scalping, it acts as a natural “ultra pulling magnet” for the price.
— Unlike other averages, when there is a significant departure, the price and the average tend to seek it quickly.
🔍 Why is this key?
Because larger timeframes like 4H, the price and the VWAP almost never separate. But in 5M, when they do so abruptly, the short-term reversal is probably the action that the price should take; it's not always like that but in trading, nothing is as it should be; trades are based on probabilities according to your level of technical analysis and the reversal to the VWAP with a favorable context in a trade with a high probability.
✅ Two confirmations for my entry:
— Weakness in 1H
— Departure from VWAP in 5M and breaking of a technical wedge downward.
All based on principles of Smart Money Concepts (SMC).
📌 Do not trade on impulse. Study your triggers. Understand why.
Don't just stick with the signal. Stick with the analysis, reason it out, and improve your trading.
