Hey Family, It’s RkY here again, and after the success of my previous trade explanation $TURBO, I’m excited to share another winning strategy! This time, I made 550% profit in just 10 minutes on $REEF while others were panicking and shorting. So, how did I go long while most people were selling? Let me break it down for you.
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The Strategy is,
I used a few key indicators and strategies to make this trade
FVG (Fair Value Gap) – This gap showed us there was space for the price to recover, which set up the perfect entry for a long position.
Daily Support – $REEF was sitting on a strong daily support level. Prices tend to bounce off these levels, so it gave us extra confidence to go long.
Daily Support and Why I Went Long
If you take a close look at the chart, you’ll notice the green line that marks a strong daily support level. Historically, every time $REEF touched this level (marked by the red circles), it bounced back up. This is a key area where buyers typically step in, preventing the price from dropping further. The price respecting this level multiple times shows that it’s a solid support zone, and we expected the same reaction this time.
Now, today (yellow circle), the price touched this same level once again. Based on previous patterns, I was confident that the price would reverse and push higher, especially since it had shown this behavior before. The yellow mark indicates that $REEF has started to show signs of a reversal, making it the perfect moment to go long.
Historical Bounces: Each time $REEF has hit this daily support level, it bounced back. This level has held up multiple times over the past few months, making it a reliable indicator for a potential reversal.
Confirmation: The yellow candle today shows the price starting to react to this support level, confirming that the bounce is likely to happen. This, along with other indicators (FVG, volume, oversold RSI), gives us the confirmation that the trend is about to reverse upwards.
Volume Slowly Peaking – Volume was gradually increasing, signaling that momentum was building for an upward move.
(Green Arrow) Rising volume during a price drop suggests that sellers are getting exhausted and buyers are starting to step in. The surge in volume is a key indicator that the market is about to reverse its direction.
When volume increases sharply near a strong support level, it's a sign that the selling pressure is weakening, and a rebound is likely. This gave us the confidence to go long just before the big price spike.
Stochastic RSI Oversold (Last 18 Hours) – The Stochastic RSI had been oversold for 18 hours, indicating the selling pressure was likely exhausted.
See this Stochastic RSI shows that meaning $REEF has been oversold for 18 hours (highlighted in yellow), meaning the price has dropped too far, too fast. When the Stochastic RSI is this low, it usually signals that the market is overstretched on the downside, and a reversal is likely. This long period of overselling suggested that the sellers were exhausted, making it a perfect setup for a bullish reversal.
3-Minute Chart 21 & 7 MA Bullish Crossover – On the 3-minute chart, the price broke above the MA, confirming the bullish momentum.
Trade Setup
Trade Results:
In short, while most people are scared of the falling market, smart traders know how to turn that fear into profit.
