The question that often appears to be asked to me is "how and when to buy bangg coins??"
I find this question a lot in my ig dm or telegram. Because there are still many who are confused about this, I think we should discuss this on Binance Square so that all my friends can understand how and when to form a coin.
Basically, buying a coin is a momentum. Where we have to find the right moment to buy so that we can maximize the gain obtained from the position of the coin we have.
There are several types of things we can do to open a position, 2 of the most famous are buy on breakout and buy on weakness. Both have their own advantages and disadvantages. Let's discuss…
Buy on Breakout :
Plus: we chase the coin's momentum, so that when the coin continues its rise, we are in the right trend
Minus: the stop loss set will seem wider because we are in the upper position.
Lalu, buy on weakness :
Plus: if you buy at a low price and the price continues to rise, then we benefit because the gain we get is greater.
Minus: prone to continuing the downtrend and even getting a stop loss because the entry is against the trend.
Those are the Plus Minus of every plan in general. So, there is no such thing as a surefire trick or Holy Grail in all of this, right!
If you want to learn more about this, you can also visit my Telegram channel, Billionaire Trader by clicking the link below: https://t.me/BillionaireTrader99
Although there is no such thing as the Holy Grail, we can still increase our probability of opening a position, especially in buying the dip. Let's discuss it further!
Buy the dip : How?
We go into how to buy on weakness, moreover there is a minus from this buy on weakness method which is still dragged by the big bearish trend so that we get a stop loss. So, what is the solution to this?
Although trading is full of uncertainty, what we can do now is to buy on accumulation phase. In other words, we buy when the trend is SIDEWAYS.
We will buy NOT when the price is going down, but we will buy when the price is DOWN. This is the key to changing the trend structure from bearish - sideways - bullish.
You can apply this method to ALL TIME FRAME trading or investing, so this method is very applicable to all of us.
The bottom box is the accumulation box that we have been talking about earlier, so when the price is declining, we will try to open a buy position and when in the second box, where the price is running high, then that is the place where we can realize the profit that we have because we have bought from the bottom first.
This is an example of how we apply it in a sideways range or buy on weakness in the h1 timeframe.
And this is an example of buy on weakness in 30m time frame. 43% instant profit!!!
Delicious isn't it????
But, we will not only discuss this, we will also discuss how to limit the risk in this system?
Let's move on to: Setup Trade Plan in Buy on Weakness (Buy the dip)
We will use the example of BABY DOGE.
The white line is the support area of the baby doge, and in that area is the reflection area of the baby doge.
Because the price has declined and is also at support, it will be more interesting for us to open a position in this area.
We can put our stop loss below its support and our potential gain is not too ambitious, we put it at the first resistance of baby doge after it experiences a significant decline. More or less the RR given with this concept is 1:2
Want to setup a more aggressive trade plan? You can use a smaller margin for this, and..
The reward is the same. However, we really SET the risk TIGHT because we are waiting for:
Price is back in the support area
There is a convincing bullish candle, in the chart it is a bullish engulfing
When there is a good bullish candle, we enter and stop loss below the swing low.
There is a significant weakness in this area because we are using a very tight SL. However, if it is done successfully, the gain is MASSIVE.
Everything has more or less, we just have to match it back to our trading style which one is more comfortable. Hope it helps!
