🐘I showed you that on the 5-minute timeframe it looks like a terrible price drop, but on the 1-day timeframe everything is going according to plan in an upward channel in the medium term ‼️
If you adhere to risk management, liquidations are not scary ‼️
📈For beginner traders, it is important to understand that local price fluctuations are a part of a natural market, not a reason for panic. Using the example of the ORDI token, which demonstrated
a significant decline over the past two days, we can explain why such movements do not necessarily indicate a 'drop' or a change in trend in the medium term.
1. Understanding the upward channel
The upward channel is a range within which the price moves up, forming a sequence of higher lows and highs. Even if the price falls within the channel, it can remain in this trend.
Example: ORDI within its channel accelerated the movement by testing the lower boundary. This does not mean a trend reversal, but rather reflects acceleration or a temporary pullback. The price remains within the upward channel, indicating the retention of upward momentum.
2. Corrections are normal
Price declines are corrections that occur due to profit-taking, increased volatility, or short-term news background. However, such movements often provide opportunities to build positions at lower levels within the upward trend.
Example: the decrease of ORDI over the past two days accelerated the process of 'working off' the movement within the channel. The price has corrected but remains within the structure, confirming the retention of growth prospects in the medium term.
3. Maintaining focus on the medium-term perspective
It is important not to succumb to emotions due to local declines. If the overall trend remains upward (as in the case of ORDI), this indicates that the target structure remains relevant.
How should a trader act?
• Do not panic: Local pullbacks are part of the journey.
• Evaluate the channel: If the price does not break through the lower boundary of the upward channel, the trend remains.
• Focus on the medium term: Observe key levels and confirming signals.
Thus, the local decline of ORDI is just a part of the natural market movement, and the acceleration of the process within the channel may even shorten the waiting time for medium-term goals‼️