Written by: Minty
Compiled by: Deep Tide TechFlow
For entertainment purposes only, not financial advice.
Momentum shifts: Observe changes in market momentum to look for potential trading opportunities.
For market leaders that have experienced severe sell-offs, I look for formations of higher lows (HL) and higher highs (HH) to establish new market structures.
Use other signals as potential resonance references; no indicator should be used in isolation.
Look for sell-off projects that arise from new narratives, strong trading volumes, and continuously increasing holder counts.
Entry strategies may include entering at the 0.786 Fibonacci area or looking for entry opportunities in bullish projects at each higher low (HL), depending on personal preference.
Accumulation area: After a market decline, look for areas where prices fluctuate within a certain range, usually seen as an accumulation phase.
Typically define a clear consolidation area after a sell-off.
Sometimes the consolidation area is not very obvious, as the price movements of meme coins 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, specific circumstances may vary.
Sometimes, these areas will break down first, forming a new trading range, and then break up afterwards.
ATH Breakouts: When the price breaks through historical highs, it may signal a new upward trend.
Breakthroughs of historical highs (ATH) are key levels to focus on, as they may be strong signals of price expansion.
If a breakout occurs, it may indicate that a resistance level has turned into a support level, which may become an important rebound point during future price retracements.
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 generally 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 rebounds after deeper pullbacks.
Some people draw Fibonacci from the bodies of candlesticks, while others use the wicks; it all depends on personal preference.
Support and resistance levels: Price may encounter resistance or support levels during declines or increases.
Major support levels include support/resistance (S/R) flips, previous ATH breakouts, double bottom patterns, accumulation areas, etc.
On the resistance side, lower highs and difficulty in breaking through ATH may lead to price returning to the midpoint or mean of the support level.
Mastering these analytical methods requires extensive experience. The more price movements observed, the more patterns can be recognized.
Some notes
Key patterns are not always accurate. Combining multiple resonance signals can improve the probability of success.
When the market is bullish, execution is more likely to yield returns; while in a bearish market, more strategic action is required.
Using filters on Dexscreener can help you track when prices reach target levels.
Especially in new hot projects, do not expect to always get ideal entry points. You may be front-run due to higher gas fees and limit orders.
Do not overreact for missing good trades. According to experience, forceful trading due to fear of missing out (FOMO) usually leads to greater losses.
I usually default to looking at daily and weekly charts, and at least I will look at 4-hour charts, because the shorter the time frame, the more market noise there is.