$HARD $TNSR $PROS
Rule #2: Analyze the Broader Market, but Don’t Fear a Downtrend
Always start by assessing the broader market to understand the overall sentiment. Don’t be discouraged by a market downturn—you can still profit by carefully selecting coins at local lows relative to previous highs. Here’s the approach:
1. Check the Daily (1D) Chart: Analyze the coin's 1D trend. If it’s bullish, aim for a higher profit target; if bearish, set a target at about half that level.
2. Examine the 4-Hour (4H) Chart: The 4H timeframe is key for spotting opportunities, as it reveals whether the market is at a potential bottom. Look for reversal signs on this chart; if they’re present, it may be time to enter.
3. Set a Target Using the 1-Hour (1H) Chart: Set a sell target approximately 20% below the coin’s previous high to secure gains more reliably. Maintain patience, even through minor fluctuations.
4. Monitor Key Indicators: Use Williams %R, RSI, MACD, and volume trends. If you see high volume with bearish sentiment, consider an exit; however, low volume with slight dips suggests a sideways trend, so hold your position.
5. Exit Wisely and Avoid Re-Entry: When your target is reached, exit and avoid re-entering immediately. Markets typically enter a sell-off phase within 2-4 hours of reaching a peak. Let the cycle complete before trading that coin again.
6. Look for Uncorrelated Trades: While waiting for the cycle to complete, consider other coins with different cycles for continuous trading opportunities.
This disciplined approach helps you leverage both bullish and bearish markets effectively while minimizing risk.