How do you decide to take a trade? Building on my earlier thread on identifying strong coins: https://twitter.com/TheJaFung/

Now that you know the coins you want to trade, lets look at the decision process in taking a trade:

1. Understand that perfect conditions rarely exists to take a good trade. All you're looking for is confluence between several criteria, and your goal is to enter "near" the local bottom.

2. I'll walk through an example with $PENDLE , a coin that's been up-only despite BTC volatility. Lets start off with looking at patterns with PA on the 2H. Draw fib levels from bottom to top wick on its every move and see how far it retraces. After every move up, it likes to do several minor retraces to the 0.5 area before a major retrace to the .786. On every minor retrace, it wicks between the 50 & 100EMA, and on major retraces it wicks into or below the 200EMA.

3. Looking at where price is currently, I will assume that it's currently going through a minor retrace. Hence, I'm expecting price to come down to the 100EMA as it lines up perfectly with the 0.5 fib level. See blue horizontal line in chart below.

4. Lets look for more confluence using RSI. We see that on every major retrace, RSI gets to 30. On a minor retrace, RSI gets to 40. RSI is currently at 44 and Stoch RSI has not bottomed yet.

5. I'll be taking a long when price drops to ~$2.23 if the RSI is near 40. I hope you find this simple method of entering a trade valuable!

#PendleFinance #TradeNTell #PENDLE #altcoins

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