Simple setups which are almost *obvious* are often the best ones.
One of the simplest and yet most powerful setups is entering on a pullback in a trending market.
Here we see an example of a pullback forming in an uptrend for the coin FTT (on the BTC pair).
A) THE ANALYSIS
FTT is the exchange token for the FTX exchange. Here is what I see on the H4 timeframe for FTTBTC
1) A clear trend -
- The trend is up (a simple glance at the chart is enough to see this)
2) A pullback after an impulse -
- Price action on the pullback is clearly weak, as compared to strength on the impulse (in other words - bulls are strong and bears are weak)
- "Weaker" PA is seen in smaller candles on the pullback, and a gentler angle than the bullish move that preceded it
3) Clear support -
- There is a clear support zone at 0.00135 to 145, that has caused a bullish reaction before. There is another support area below it - 0.0012 to 125
- Also, as a nice confluence, the upper zone lines up with the 20-Day EMA ( which acts as dynamic support in trending markets )
4) Price action on approach -
- We can see wicks appearing on the downside as price approaches the support area - a good sign
B) THE SETUP PARAMETERS
Putting all of this together, we have a nice trade setup, which essentially can be summed up as "buying a pullback into support in an uptrending market"
1) Entry
There are two ways to enter that I use (depends on personal preference)
1 - I would enter directly one price is in the support zone ( potentially better entries, but may get stopped out if price goes lower before reversing ). I would add to the position if price falls to the lower support.
2 - I could also enter after a bullish candlestick , ideally with good volume, at a support. This could be a lower wick pinbar or an engulfing bar at support.
2) Profit taking
1- Minimum (conservative) target would be the prior swing highs (0.00177 or so).
2- But judging by the strength of the trend, this could go much higher. Could take part profits at highs and then hold remaining with a trailing stop below the 20-day EMA.
3) Stop Loss
1 - Aggressive stop would be below the support box
2 - "Safe" stop would be below the key support at 0.0012
Fundamentals - Solana Tailwinds
If you've followed the crypto market in the last few months, you may have seen the incredible growth of Solana
FTT is a coin which belongs in the same ecosystem, and may be supported by the Solana tailwinds.
One of the simplest and yet most powerful setups is entering on a pullback in a trending market.
Here we see an example of a pullback forming in an uptrend for the coin FTT (on the BTC pair).
A) THE ANALYSIS
FTT is the exchange token for the FTX exchange. Here is what I see on the H4 timeframe for FTTBTC
1) A clear trend -
- The trend is up (a simple glance at the chart is enough to see this)
2) A pullback after an impulse -
- Price action on the pullback is clearly weak, as compared to strength on the impulse (in other words - bulls are strong and bears are weak)
- "Weaker" PA is seen in smaller candles on the pullback, and a gentler angle than the bullish move that preceded it
3) Clear support -
- There is a clear support zone at 0.00135 to 145, that has caused a bullish reaction before. There is another support area below it - 0.0012 to 125
- Also, as a nice confluence, the upper zone lines up with the 20-Day EMA ( which acts as dynamic support in trending markets )
4) Price action on approach -
- We can see wicks appearing on the downside as price approaches the support area - a good sign
B) THE SETUP PARAMETERS
Putting all of this together, we have a nice trade setup, which essentially can be summed up as "buying a pullback into support in an uptrending market"
1) Entry
There are two ways to enter that I use (depends on personal preference)
1 - I would enter directly one price is in the support zone ( potentially better entries, but may get stopped out if price goes lower before reversing ). I would add to the position if price falls to the lower support.
2 - I could also enter after a bullish candlestick , ideally with good volume, at a support. This could be a lower wick pinbar or an engulfing bar at support.
2) Profit taking
1- Minimum (conservative) target would be the prior swing highs (0.00177 or so).
2- But judging by the strength of the trend, this could go much higher. Could take part profits at highs and then hold remaining with a trailing stop below the 20-day EMA.
3) Stop Loss
1 - Aggressive stop would be below the support box
2 - "Safe" stop would be below the key support at 0.0012
Fundamentals - Solana Tailwinds
If you've followed the crypto market in the last few months, you may have seen the incredible growth of Solana
FTT is a coin which belongs in the same ecosystem, and may be supported by the Solana tailwinds.
Simplifying trading is the way to go.
Clarity on the chart -> clarity in thinking.
Clarity on the chart -> clarity in thinking.