DOTUSDT, is currently testing a critical support level at $4.257, which you've indicated as the weekly support level. This level has historical significance and is closely watched by traders.
According to the trading principles advocated by Plancton, a potential long trade could be considered if the following conditions are met:
Support Confirmation: The first condition involves the price bouncing off the $4.257 support level, indicating that this support has held and that buyers have entered the market at this level.
New Liquidity: As you mentioned, the price could potentially "grab" new liquidity below the support level. This means that traders may place buy orders just below the support level, anticipating that the price will briefly dip below it before rallying higher. This behavior is not uncommon in the cryptocurrency market.
Bullish Impulse: Following the support confirmation and potential liquidity grab, traders would look for a new bullish impulse, signaling a significant upward movement in the price.
If these conditions align with the price action, it would align with the rules outlined by Plancton's trading strategy, potentially providing a favorable opportunity for a new long position.
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Follow the Shrimp 🦐
Keep in mind.
According to the trading principles advocated by Plancton, a potential long trade could be considered if the following conditions are met:
Support Confirmation: The first condition involves the price bouncing off the $4.257 support level, indicating that this support has held and that buyers have entered the market at this level.
New Liquidity: As you mentioned, the price could potentially "grab" new liquidity below the support level. This means that traders may place buy orders just below the support level, anticipating that the price will briefly dip below it before rallying higher. This behavior is not uncommon in the cryptocurrency market.
Bullish Impulse: Following the support confirmation and potential liquidity grab, traders would look for a new bullish impulse, signaling a significant upward movement in the price.
If these conditions align with the price action, it would align with the rules outlined by Plancton's trading strategy, potentially providing a favorable opportunity for a new long position.
–––––
Follow the Shrimp 🦐
Keep in mind.
- 🟣 Purple structure -> Monthly structure.
- 🔴 Red structure -> Weekly structure.
- 🔵 Blue structure -> Daily structure.
- 🟡 Yellow structure -> 4h structure.
- ⚫️ Black structure -> <= 1h structure.