What do you do when the price reaches the number we set?
In the last competition, most of you agreed that the number 0.1045 is the resistance for currency $ALLO . But the most important question that makes the difference between the winner and the loser is: what do you do now that the price is approaching it?
The beginner trader buys as soon as the price reaches the number, fearing to miss the breakout, and this often makes them buy at the top and then the price reverses. As for the professional, they monitor two things:
Trading volume: If the price reaches the resistance with weak volume, this is a false signal and the price will reverse downwards.
Price stability: We should see a complete candle closing above this level to ensure that the wall has actually broken and turned into a new floor (support).
Always remember what we learned in the pinned "train" post on the page; entering late at the top is the biggest risk. Waiting for the confirmation of the breakout is what protects your portfolio.
Practical application for you:
Watch the chart of $ALLO now. Do you see liquidity increasing or decreasing as we approach the resistance area? Write your notes in the comments and we will discuss them together to know if the moment to enter is approaching or not.
Note: This content is educational to share with you a way of thinking in the market, and is not an invitation to sell or buy. Trading is a personal responsibility.
#MarketRebound
In the last competition, most of you agreed that the number 0.1045 is the resistance for currency $ALLO . But the most important question that makes the difference between the winner and the loser is: what do you do now that the price is approaching it?
The beginner trader buys as soon as the price reaches the number, fearing to miss the breakout, and this often makes them buy at the top and then the price reverses. As for the professional, they monitor two things:
Trading volume: If the price reaches the resistance with weak volume, this is a false signal and the price will reverse downwards.
Price stability: We should see a complete candle closing above this level to ensure that the wall has actually broken and turned into a new floor (support).
Always remember what we learned in the pinned "train" post on the page; entering late at the top is the biggest risk. Waiting for the confirmation of the breakout is what protects your portfolio.
Practical application for you:
Watch the chart of $ALLO now. Do you see liquidity increasing or decreasing as we approach the resistance area? Write your notes in the comments and we will discuss them together to know if the moment to enter is approaching or not.
Note: This content is educational to share with you a way of thinking in the market, and is not an invitation to sell or buy. Trading is a personal responsibility.
#MarketRebound