I really like to fade these types of moves: > wide body > large oi increase > positive delta Clear sign that longs are overexcited and clearly the main drivers of price moving up. As soon as theres no momentum or follow through the longs are pushed offside and begin to unwind.
Guide to trading ez money scalps during a choppy market. Wait for price to form a low and retrace (remaining longs mitigate their loss at this point), price than revisits the low and makes a higher high. Bid the next dip lower as you now have confirmation (BOS). Invalidation goes below the last low
As multiple alts reclaim resistance levels at the moment, if this is a trend flip for BTC you’ll need to trade breakouts instead of ranges My checklist before I put on a breakout trade:
One thing that took me way too long to internalise, price doesn't wait around for the crowd to agree on a certain level.
One man's liquidation is another man's treasure. One of the best indicators that still has a use case today is liquidations. For scalping, $100M–$300M often provides good intra day reversal setups. $500M–$1B+ most of the time shows exhaustion of the particular side pressing hard
try not to get sucked into trying to time the top/bottom 10% of every move. the remaining 80% in the middle exists.
Attempted to cover some more price action concepts people throw around and most people don’t even understand
Run of the highs in low vol environments is one of the best setups to trade Pattern 👇 Added confluence: - Trapped positive delta at highs - EMA cross (fast ones) to confirm reversal and trail stops
Simple concept that retail understands after all the trail and error is to not fight against the trend.
I'm not a fan of trading solely on price patterns. But what's a fact in the market is, that patterns are recurring and they work given the context. Below are 2 of my favourite setups for reversals, that I love to take in 2 very different market environments.
One of my favourite setups to take at the key inflection points: 1. At range highs, key swing highs and lows, 3 drives pattern often occurs 2. Use for confluence, not trigger 3. Post 3rd drive, look for divergence and/or liquidation spike with no CVD follow through 4. Entry
Using orderflow to understand why price moves And how to take advantage of it:
$TAO Multi days downtrend broken first week into this month, as price is above 18% so far (at the recent high) Treating this move up as potential start of the overall relief rally and bidding $310-315 with a very tight invalidation,
$FARTCOIN Was trending yesterday before the ceasefire news. And up around a decent 25% so far and now retracing.
Pattern we see quite often as of late. In ranging markets and generally as well, most breakouts end up as great reversal setups.
Having another job can actually release pressure and allow for better mental when trading, but that only applies once you have your systems in place.
$ETH Not the best looking chart compared to Sol. The level we were looking to bid, did not hold as price is trading below it, the idea is invalidated until a reclaim with some momentum.
