Explanation of the FIDA/USDT Short Trades
In the FIDA/USDT chart examples, the reversion strategy is applied when the coin reaches a resistance on the 4-hour timeframe. Using Bollinger Bands helps in identifying extreme movements, signaling potential reversion zones for short trades. You can clearly see from the charts how the strategy was applied when the coin touched the resistance level, with further confirmation from the BB indicator.
2. Reversion Strategy
This strategy is ideal for scalping, where trades are executed within extremely short time frames. The key focus here is to target situations when the price of a coin moves extremely beyond the trading range, like during an extreme pump or dump. In this situation, a short position (selling first and buying later) tends to be the most profitable.
Time Frame:
⏱️1 minute (1m)
⏱️3 minutes (3m)
⏱️5 minutes (5m)
How to Execute This Trades:
1. Identify the trend: You can use indicators like Exponential Moving Averages (EMA), Bollinger Bands (BB), and Volume to find whether the price is trending or ranging.
2. Entry Point: Enter the trade based on a clear projection of price action and set a Stop Loss (SL) and Take Profit (TP) for risk management.
Risk Management:
✅Don’t change your Stop Loss (SL) once set.
✅Take half profit when the price moves in your favor by 30%.
✅Move your SL to the entry point after your trade gains some traction (this ensures a risk-free trade).
✅Implement a Trailing Stop Loss to secure profits as the trade moves further in your favor.
✅Avoid taking screenshots during active trades to avoid distractions or hesitation.