If you’ve missed the initial surge of a coin in a bullish market, don’t worry. Here’s a straightforward method to capitalize on the trend with precision and minimal risk:
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Step 1: Identify Consolidation Near the High
Wait patiently for the price to consolidate around its recent high after a significant move. This shows the market is taking a breather, preparing for the next potential breakout.
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Step 2: Mark the High with a Key Level
Draw a horizontal line at the high point of the consolidation. This will act as your reference for entry and risk management.
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Step 3: Enter After Confirmation
Once a candle closes above the marked high (on your chosen timeframe), it signals a breakout. Enter the trade at this point, riding the trend upward toward the next significant resistance or target level.
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Step 4: Define Your Invalidation Point
Risk management is critical. Use the same level you marked for entry as your invalidation point. If the price falls back and a candle closes below the marked high, it indicates a failed breakout. Exit the trade to minimize losses.
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Important Notes
This strategy works best in an uptrend or bullish market.
Avoid applying it in a downtrend or bearish conditions, as the probability of successful breakouts decreases significantly.
By following these steps, you can maximize your chances of catching a profitable move while managing your risk effectively. Stay disciplined, and always trade with a clear plan!