Example of how to trade in an altcoin bull market
2024-12-05


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(ETHUSDT 1D chart)

The volatility period of ETH is expected to continue until December 5th.

The point to watch is whether the price can be maintained above 3707.61 and the ATH can be renewed.


As the price rises, I think the important support and resistance area is the 3265.0-3321.30 area.

Therefore, if the price is maintained above this important support and resistance area, I think it is likely to continue the uptrend.

However, if it falls below the BW (100) and HA-High indicators, there is a possibility that a downtrend will begin, so you should think about a countermeasure for this.

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I think it is better to refrain from trading with a sell (SHORT) position in an altcoin rising market and trade mainly with a buy (LONG) position.

The reason is that there are many more cases where it pretends to fall and then rises.

Therefore, it is better to find a time to buy when the candle on the 1D chart is a falling candle and it shows support near the support and resistance points drawn on the 1M, 1W, and 1D charts.

However, coins (tokens) that have updated their ATH do not have support and resistance points, so it is impossible to confirm whether they are supported.

In this case, it is recommended to buy when the candlestick on the 1D chart is a bearish candlestick, when the StochRSI indicator on the 1h chart rises below the 50 point, or when it shows support from indicators such as BW(0), HA-Low, BW(100), and HA-High.

The fact that BW(0) and HA-Low indicators are created means that a low point range has been formed, so if support is confirmed near the range made up of these indicators, it can be considered a buying period.

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The fact that BW(100) and HA-High indicators are created means that a high point range has been formed, so if it fails to break through the range made up of these indicators, it is a time for a split sale.

However, when an altcoin bull market is in progress, it is recommended to lower the proportion of split sales or wait.

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The question of which altcoin will rise is a meaningless question given the current flow of the coin market.

In an altcoin bull market, it is better to ignore most auxiliary indicators or the increase in price and trade.

If you pay attention to auxiliary indicators or the increase in price, you will miss the time to buy and buy after the price rises, which increases the possibility of failure in trading.

Therefore, as I mentioned earlier, when the candle on the 1D chart is a downward candle, you need to think about how to proceed with the purchase and focus on finding the right time to buy.

However, since it can fall again, it is better to adjust the weight with the intention of buying in installments from the beginning.

In addition, you need to set a stop loss point to reduce damage caused by a sudden drop.

This is because if it suddenly fails to turn into an upward trend and falls, you can suffer great damage.

Therefore, when buying, consider whether to buy in installments or cut your loss and find a new time to buy, and then proceed with the purchase to reduce the psychological burden.

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Have a good time.
Thank you.

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- ​​Big picture
I used TradingView's INDEX chart to check the entire range of BTC.

(BTCUSD 12M chart)

Looking at the big picture, it seems to have been maintaining an upward trend following a pattern since 2015.

In other words, it is a pattern that maintains a 3-year upward trend and faces a 1-year downward trend.

Accordingly, the upward trend is expected to continue until 2025.

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(LOG chart)

Looking at the LOG chart, you can see that the upward trend is decreasing.

Accordingly, the 46K-48K range is expected to be a very important support and resistance range from a long-term perspective.

Therefore, I expect that we will not see prices below 44K-48K in the future.

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The Fibonacci ratio on the left is the Fibonacci ratio of the uptrend that started in 2015.

That is, the Fibonacci ratio of the first wave of the uptrend.

The Fibonacci ratio on the right is the Fibonacci ratio of the uptrend that started in 2019.

Therefore, this Fibonacci ratio is expected to be used until 2026.

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No matter what anyone says, the chart has already been created and is already moving.

It is up to you how to view and respond to it.

Since there is no support or resistance point when the ATH is updated, the Fibonacci ratio can be appropriately utilized.

However, although the Fibonacci ratio is useful for chart analysis, it is ambiguous to use it as a support and resistance role.

The reason is that the user must directly select the important selection points required to create the Fibonacci.

Therefore, it can be useful for chart analysis because it is expressed differently depending on how the user specifies the selection point, but it can be seen as ambiguous for use in trading strategies.

1st: 44234.54
2nd: 61383.23
3rd: 89126.41
101875.70-106275.10 (when overshooting)
4th: 134018.28
151166.97-157451.83 (when overshooting)
5th: 178910.15

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