Written by: Minty
Compiled by: Deep Tide TechFlow
For entertainment purposes only, not financial advice.
Momentum shift: Observe changes in market momentum to identify potential trading opportunities.
For market leaders that have experienced severe sell-offs, I look for the formation of higher lows (HL) and higher highs (HH) to establish a new market structure.
Use other signals as potential resonance references; no indicator should be used in isolation.
Look for sell-off projects that exhibit characteristics such as emerging narratives, strong trading volume, and a consistently growing number of holders.
Entry strategies may include entering at the 0.786 Fibonacci level or looking for bullish entry opportunities at each higher low (HL), depending on personal preference.
Accumulation area: After a market downturn, look for areas where the price fluctuates within a certain range, often seen as an accumulation phase.
Typically define a clear consolidation area after a sell-off.
Sometimes the consolidation area is not very obvious, as meme coins' price movements can be more volatile.
The definition of the consolidation area depends on the market context. Although consolidation is usually seen as an accumulation area after a sell-off, the specifics may vary.
Sometimes, these areas may break down first, forming a new trading range, and then break up later.
All-Time High (ATH) Breakouts: When the price breaks above its historical high, it may signal a new upward trend.
Breakouts above All-Time Highs (ATH) are key levels to focus on, as they may signal strong price expansion.
If a breakout occurs, it may indicate that a resistance level has turned into a support level, which could become an important rebound point during future price pullbacks.
For meme coins overall, price discovery is very important as it drives market speculation.
Fibonacci Retracement: Using the Fibonacci sequence to identify potential support and resistance levels.
In Fibonacci retracement, the red and yellow areas are often seen as potential entry points for bullish pairs with momentum.
The 0.618 level is an ideal entry point during larger pullbacks, while the 0.786 level is suitable for rebound trades after deep corrections.
Some people draw Fibonacci from the bodies of candlesticks, while others use the wicks; it completely depends on personal preference.
Support and resistance levels: Levels of resistance or support that the price may encounter during declines or increases.
Major support levels include support/resistance (S/R) conversions, previous ATH breakouts, double bottom patterns, accumulation areas, etc.
On the resistance side, lower highs and difficulties breaking ATH may lead prices to revert to the midpoint or mean of support levels.
Mastering these analytical methods requires extensive experience. The more price movements you observe, the more patterns you can identify.
Some notes
Key patterns are not always accurate. Combining multiple resonance signals can enhance the probability of success.
In a bull market, execution is easier to yield returns; in a bear market, more strategic operations are needed.
Using Dexscreener's filters can help you track when prices reach target levels.
Especially with new hot projects, do not expect to always get ideal entry points. You may be outpaced by higher gas fees and limit orders.
Do not overreact to missed good trades. Based on experience, forcing trades out of fear of missing out (FOMO) often leads to larger losses.
I usually default to looking at daily and weekly charts, at least checking the 4-hour chart, as the shorter the timeframe, the more market noise there is.