This trade ($SOL ) was executed absolutely perfectly. At the very beginning, when I was calling on the plaza for SOL to catch up and fill the gap, the price was around 84. The targets were 100 and 110. Along the way, I repeatedly reminded everyone to pay attention to SOL—both the direction and the entry/levels were very correct. After SOL rebounded and reached our target near 110, it immediately started to fall. Many people are wondering, why did it start dropping as soon as it hit 110?
The reason is simple: this leg of the market move is a weekly-level rebound, so you can’t use daily chart candlesticks to study (the market). From the weekly SOL candlestick chart, the area above with dense holdings—the so-called zone where lots of longs and shorts have been handed back and forth—is in the 120–130 range. The previous week-level rebound’s resistance was around 100. So we went straight to the midpoint, 110, as the final target of this rebound—and the levels were still extremely precise.
Technical analysis isn’t that complicated. To find resistance, just look at the upper candlestick dense trading/turnover area. To find support, just look at the lower candlestick dense trading/turnover area. Keep it simple—what’s essential is the correct way, not complexity.
The reason is simple: this leg of the market move is a weekly-level rebound, so you can’t use daily chart candlesticks to study (the market). From the weekly SOL candlestick chart, the area above with dense holdings—the so-called zone where lots of longs and shorts have been handed back and forth—is in the 120–130 range. The previous week-level rebound’s resistance was around 100. So we went straight to the midpoint, 110, as the final target of this rebound—and the levels were still extremely precise.
Technical analysis isn’t that complicated. To find resistance, just look at the upper candlestick dense trading/turnover area. To find support, just look at the lower candlestick dense trading/turnover area. Keep it simple—what’s essential is the correct way, not complexity.
