#MarketPullback
1. Identify the trend
Overall trend: The current price is in a downtrend as the main trendline (blue line) is moving downwards.
Short-term signal: The price has recovered after hitting the support level near 90,500 USDT and is testing the resistance area around 98,546 - 99,600 USDT.
2. Bollinger Bands tool
Bollinger Bands (yellow and purple lines) indicate that the price is recovering towards the middle level (MA 20 line, pink). This signals that buying pressure is increasing but still remains in the lower band, not breaking through strong resistance.
The upper band (105,768) and lower band (93,432) can serve as the next support and resistance levels.
3. How to trade according to the trend
a. Trade in a downtrend (current):
Selling strategy:
When the price touches the resistance trendline or the upper band of Bollinger Bands (near 103,188 USDT).
Set a stop loss above the resistance line (~105,000 USDT).
Take profit at the next support area (~96,400 or 93,500 USDT).
b. Counter-trend trading (price pullback):
Buying strategy:
When the price breaks the trendline or the area of 100,000 USDT with high volume.
Set a stop loss below 98,500 USDT.
Take profit at the next resistance area (~105,000 or 108,000 USDT).
4. Important notes
Always check additional trading volume to confirm signals.
Use RSI or MACD indicators to find suitable entry/exit points.
Tightly manage risk, do not risk more than 2% of capital for each trade.
