After ARB broke below its previous ascending channel, each high has been lower than the last. It is now oscillating between two key levels: support and resistance. The way to trade this kind of setup is to avoid chasing price in the middle of the range: scale in near the lower boundary and reduce your position near the upper boundary. Only switch to a trend-following long if price breaks above the upper boundary on strong volume; if it falls below the lower boundary, exit immediately. Treat the range as a swing-trading opportunity, not a trend.
The current price is $0.1960, up 8.2% over 24 hours, and recovering from the lower end of the range. At current levels, around $0.19 is short-term support, while $0.205 to $0.21 is a dense resistance zone formed by previous highs. Buying dips within the range and following a breakout is more worthwhile than chasing price in the middle. #ARB
The current price is $0.1960, up 8.2% over 24 hours, and recovering from the lower end of the range. At current levels, around $0.19 is short-term support, while $0.205 to $0.21 is a dense resistance zone formed by previous highs. Buying dips within the range and following a breakout is more worthwhile than chasing price in the middle. #ARB