๐ ๐๐จ๐ฐ ๐ญ๐จ ๐๐ก๐จ๐ซ๐ญ ๐ ๐๐จ๐ฉ ๐๐๐ข๐ง๐๐ซ ๐๐ฌ๐ข๐ง๐ ๐ญ๐ก๐ ๐๐๐ฏ๐๐ซ๐ฌ๐ข๐จ๐ง ๐๐ญ๐ซ๐๐ญ๐๐ ๐ฒ ๐จ๐ง ๐ ๐-๐๐ข๐ง๐ฎ๐ญ๐ ๐๐ข๐ฆ๐๐๐ซ๐๐ฆ๐ | +๐๐๐% ๐๐ซ๐จ๐๐ข๐ญ ๐ข๐ง ๐๐ ๐๐ข๐ง๐ฎ๐ญ๐๐ฌ๐
Letโs dive into another educational trading strategy to help elevate your skills! Todayโs topic focuses on "The Reversion Strategy", an approach that can significantly improve your trading performance. Make sure to follow and share this post letโs grow and learn together!
What is the Reversion Strategy?
In trading, what rises fast often falls back just as quicklyโa concept known as mean reversion. The idea is simple: after a sudden spike, prices often revert to their average. By identifying top gainers coins that surged rapidly we can anticipate when their price might drop and profit from the correction.
Step-by-Step Guide to Shorting a Top Gainer:
๐ Step 1: Find a Top Gainer
Start by scanning the market for coins with substantial short-term gains. On Binance, you can check the โTop Gainersโ section. Focus on coins that have surged 15% or more within the last 1-2 hours. These fast risers are often overbought, making them prime candidates for a reversion.
๐ Step 2: Switch to the 5-Minute Timeframe (TF)
To accurately spot potential reversals, switch to a 5-minute TF chart. This timeframe offers a clearer view of short-term price movements and makes it easier to pinpoint resistance levels.
๐ Step 3: Identify Resistance Levels
A resistance level is where the coinโs price struggles to move higher. Look for zones where the price has repeatedly tested but failed to break through. These resistance points signal where buying momentum fades, and selling pressure increases.
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