DOT/USDT Breaking LTB After Reaction at POC

20 בינו׳ 2023

DOTUSDTPERP

DOT is breaking the long-term LTB after suffering a price reaction in the POC of a session between August and December 2020, see that this zone remained reactive for prices.


But now it's easy to think like that since it already happened, however, here I'm going to leave a study done on May 11, 2022 where the 4.39 range was already plotted on my screen, waiting for a price reaction.


These plotted regions were reactive, some more, some less, but if you see the price reaching a certain region and consider it important, you can operate more objectively.


See how the price arriving in an area where it is interested in being traded works



Let's dissect this movement, the numbers are clear possible trades in my view. [/B]
See that on possible entry 1 it was a falling knife buy, few traders have the stomach for limit buys against the move, but the price level showed strong supply absorption and paid a great risk return.

Next we have the possible entry, number 2, see that this is already a clearer and calmer entry for many operators, either by buying limited below the last minimum, with the reading of 3 consecutive breakout failures or the purchase with a stop order at signal bar breakout with projected movement objective.

If the operator was unsure with entry number 2, he would have confirmation a few bars ahead, with an opportunity for entry number 3, with a slightly higher price and even so with a potential risk, favorable return, see that this is the entry of the late ones, it sometimes does not occur.

And finally entry number 4, which can also be a position increase, this operation 4 would be the purchase of a pullback in the price RANGE in which the buying demand managed to absorb the offer, and consequently the demand should take the market to at least a test in extreme zones where the greatest supply of assets will be found.

So the point here is, mark your charts here on TradingView in order to find the best zones where the price should show strength, be it buying or selling and trade in favor of the price reaction.

At the moment DOT/USDT is working in an area that is not very favorable for purchases, but these are the levels that I am looking to trade

Daily and 4 hours - 5.29 / 5.10 / 4.68



For those who like Fibonacci, the 5.29 and 5.00 range is also important and is confluent with the reference ranges plotted in the study.

This idea intends to find relevant zones for Pullbacks in DOT/USDT in search of a purchase for a new high Swing, if these zones do not show a reaction, it is possible that the balance of forces returns in the market and the context becomes more lateral.

🚨Disclaimer: The comments above reflect solely and exclusively my opinion, this is not a recommendation to buy or sell. Just a series of published studies, so that with the community we can discuss tactics and operational techniques.