I would like to share some insights from my own experience watching low-cap coins. Taking OPK as an example. Open the 4-hour Bollinger Bands.
1. Observe that before the large bullish candle at 0.0519, it was consistently sticking to the upper yellow band. At this point, it is a time to hold firmly without swinging positions; hold steadily and don’t rush to sell.
2. If you must sell, sell at this large bullish candle at 0.0519, which is far from the upper band and shows huge volume, indicating a high probability of a pullback. But do not sell everything, because there may be several such large bullish candles. If the market is strong enough, the next large bullish candle may have even greater volume, and selling everything may leave you empty-handed. (How to determine this in advance is what I call a 50M market cap, combined with this, it is highly probable you can sell near the highest point.)
3. When the first large bearish candle appears, it is still not the time to operate, because most of it is above the upper band, which indicates that it may continue to stick to the upper band.
4. When the second large bearish candle appears, with a significant portion below the upper band, it indicates that the pullback has been confirmed. However, there is no need to panic; it is highly likely that it will rebound to the middle band. It will rebound close to the upper band. If the chips are already at a high price and one wants to lower the chip price, it means placing orders at the middle band to accumulate.
5. When a large bullish candle rebounds close to the upper band, there are two situations. The first is a huge volume, where the bullish candle is far from the upper band, indicating strong buying pressure, and it will continue to stick to the upper band, so continue to hold. The second is low volume, where the body returns inside the upper band or doesn’t even touch the upper band at all, indicating that it will pull back again. But this time it will not just pull back to the middle band. It will have a small rebound to the middle band, then continue to drop to the lower band. So if you previously bought at the middle band to lower the chip price, you can sell this part at the upper band position, which effectively reduces your overall chip price certainty.
6. When approaching the lower band, it will gradually rebound to the middle band, then drop back to the lower band, then rebound to the middle band, and then drop back to the lower band. Generally, this happens 2-3 times, and then you will notice it starts to pull up towards the upper band again. At this time, the washout has been completed.
I am not saying this to encourage everyone to swing trade, but to reassure everyone of their position and not to worry frequently about whether it will come back. True diamond hands are unafraid of volatility. Of course, this is under the premise that the bull market is still ongoing.