Guidelines for Trading Altcoins During Market Corrections

During market corrections that cause a general decline in altcoins, there are actually many trading opportunities. The focus should be on those altcoins that exhibit strong resilience, as they are likely to be the first to gain momentum when the market warms up and initiate a new round of upward movement.

Resilient altcoins mainly present two types of patterns: the first is the 'counter-trend rising' type, which, even when the overall market is declining, sees its price rise instead of fall, demonstrating a very strong upward driving force; the second is the 'oscillating volatility' type, which may not show significant upward movement but maintains a volatile state within a specific range, without significantly dropping along with the market.

For example, BNB, in the context of a market correction causing a collective drop in altcoins, shows a box consolidation pattern in a smaller timeframe. For short-term traders, operations can be conducted based on the upper and lower boundaries of the box or the upper and lower bands of the Bollinger Bands. When the price approaches the upper boundary of the box or the upper band of the Bollinger Bands, it is advisable to consider selling; conversely, when the price nears the lower boundary of the box or the lower band of the Bollinger Bands, one can choose to buy, using this high sell low buy strategy to earn price difference profits.

If the price breaks out of the box, it indicates that it is about to choose a new direction. At this time, traders must decisively enter the market. The reason is that when the market subsequently begins to rebound, these resilient altcoins that have just broken out of the box generally launch a strong upward attack after a brief consolidation. If such a situation occurs, being bold in following up could yield substantial profits at the early stage of the market reversal, achieving efficient trading profit goals.