#People $people chart - entry model illustration
This chart displays the price action of the PEOPLE/USDT perpetual contract on Binance over a period from late March to late May 2024. The chart includes annotations that describe various trading entries and price movements. Here's a breakdown:
Support Flipped to Resistance and Range Top: Initially, a significant support level is identified, which later flips to resistance. This price level also marks the top of a trading range.
Deviation: The price deviates below the support level, indicating a temporary break below the established range.
Support and Range Low: The lower boundary of the trading range, which acts as support, is marked.
Bullish Breakout: After consolidating within the range, the price breaks out above the resistance level, signaling a bullish trend.
Retest: Following the breakout, the price retests the previous resistance level, now acting as support.
Entries:
Entry 1: Positioned at the range bottom/support, indicating a potential buy opportunity at the lowest range level.
Entry 2: Located at the range middle, suggesting an entry as the price moves through the mid-point of the range.
Entry 3: Breakout entry, placed at the point of the bullish breakout above the range top.
Entry 4: Retracement entry, identified after a retracement following the initial pump.
Price Movements:
66% Pump: The chart highlights a significant 66% price increase following the bullish breakout.
Retracement Entry: A retracement occurs after the pump, offering another potential entry point for traders.
Overall, the chart illustrates a trading strategy based on identifying key support and resistance levels, observing deviations and retests, and capitalizing on breakout and retracement opportunities.
Support Flipped to Resistance and Range Top: Initially, a significant support level is identified, which later flips to resistance. This price level also marks the top of a trading range.
Deviation: The price deviates below the support level, indicating a temporary break below the established range.
Support and Range Low: The lower boundary of the trading range, which acts as support, is marked.
Bullish Breakout: After consolidating within the range, the price breaks out above the resistance level, signaling a bullish trend.
Retest: Following the breakout, the price retests the previous resistance level, now acting as support.
Entries:
Entry 1: Positioned at the range bottom/support, indicating a potential buy opportunity at the lowest range level.
Entry 2: Located at the range middle, suggesting an entry as the price moves through the mid-point of the range.
Entry 3: Breakout entry, placed at the point of the bullish breakout above the range top.
Entry 4: Retracement entry, identified after a retracement following the initial pump.
Price Movements:
66% Pump: The chart highlights a significant 66% price increase following the bullish breakout.
Retracement Entry: A retracement occurs after the pump, offering another potential entry point for traders.
Overall, the chart illustrates a trading strategy based on identifying key support and resistance levels, observing deviations and retests, and capitalizing on breakout and retracement opportunities.