The average price stands at around $96419.
When we talk about average buy, it's basically the average price people paid for the coin on the exchange over a specific timeframe, which I’m not sure about. I’m curious if any of you rely on this as a trading signal to decide when to jump into another long position?
There are many indicators and you can use indicators that you master them with your knowledge and practice. I am not familiar with Average Buy indicator, so I don't say it is good or bad, or applicable for entry.
I'd like to use Volume Profile VPVR, and price knots (resistance and support) to find my possible entries.
https://www.binance.com/en/square/post/11840324644305
I don't use Indicators to trade, neither do I use that Average buy as an indication to enter a long position because after the price have experienced a significant downward trend from rejection of the previous supply zone, I expect that it should have created another large supply zones and a fair value gap (FVG). So, if the price tries to surge again, it's not just going to move up smoothly, price will still get rejected and pushed down below the first average buy zone to create another average buy or the price might start consolidating in those newly created supply zone. So, imagine taking a long position on the last average buy zone and the price goes up and gets rejected at the new supply zone and perhaps the rejection wicked all the way down to form another average buy? That's why I don't use it.
Take for example the picture below, it first created an average buy but when it tried to go up, got rejected on the new supply area and wicked down almost to the demand zone ( the green place below), if any trader had entered a long position their, they will be cut short. From the picture, you can still see where I like to take my entries, after a buy candle closes above the previous resident level, then I will close the trade the moment I start to see another rejection on the first supply zone.
I thought you are trading in the derivative market? If you are, it would be good to learn how to use indicators. They are not 70% accurate but with experience they are still useful. I use bolinga band (BB), relative strength index (RSI) and parabolic stop and reverse (SAR). They are all good indicators including Fibonacci retracement. But still you can not fully depend on indicators. Experience and strategies are also very important in trading. Although I read your explanation.
Although I didnt know this indicator existed but it is a good one because I once used CoinGlass aggregator to check open interest just to see where positions are been opened, having this indicator that tells you a certain price where the market was bought the most simply is telling you where the liquidity is lying and we all know that the market will always come back to clear all this liquidity left. So if the market is like above $100k then there is high tendency that it will definitely come back to this price, in trade like this you have the opportunity to short it down or easily set a limit order too at this price so that it can long it when it comes back to clear the liquidity.
I also do not use indicators although I very much familiar with the Fibonacci retracement, I mostly use it with fair value gap to add to my confluence on setting an order block, I use the 0.618 value and it has been working on well for me of recent
Yes, I trade on the derivative option. Honestly, the last time I remember using indicators was around 2020 when I was still learning forex trading but ever since I left forex and shifted all my forex knowledge to trading derivatives, I have never thought myself to use indicators, I don't know why.
You are right about indicators, that's what most traders use and they still end up with the right price analysis and get profits from it. Like you said, you use those indicators and still make your profit but if I say let me introduce it to my strategy now, it will be me trying to learn and master a new pattern.
This is true because when we look at the way the market is performing now, we are having a resistance at $90,000 and a sentiment at $104,000 and the investors or traders would try to look at the entry point for their short time trade, whereby they could easily make a future prediction where their asset could not easily get to liquidate and this range of $96,000 average could be best place for any market either on a short or long future trade.
This is a clear Indicator or probably confluence for a long for those who have been into trading well enough to the point they understand and know or see an opportunity when it comes, what is playing out is a correction which we all know the movement that comes thereafter.
I don't understand the chart well. If I want to buy a coin, I see their weekly candles. If they have been going down for at least two weeks, I think this is the time to buy that token. I am a spot trader and I wait for the token to pump in the next week. If there are no new token unlocks or something like that, or if there is no bad news regarding a token, then it is likely to pump during the alt season or at least while the market is green.
I do not hold a token for a long time as most of them are going to dump after the bull run. Since none of know when to exit the market, taking profit in short term is a good idea. That is what I have been planning this season.
It can be a good trading strategy with Bitcoin, but it is risky with altcoins. Bitcoin actually has several consecutive red months too, but Bitcoin is strong and after bearish months or even a long bear market after 2 years, it eventually rallies well and starts its new bull market.
With altcoins, don't expect the same rally or new bull market. Altcoins especially tokens can die very easily and their altcoin developers can abandon their projects because most of them, especially token projects' developers don't have enough dedication to continue with their failed projects.
People must know big differences between coin and token too.
Definition of tokens.
If I base my analysis on the image you provided, the bottom candlestick that formed like a hammer is an indication that the price could still go down. That's according to my analysis. Besides that, the two blue lines at the top and bottom seem to be the ones that give the signal that a breakout has occurred.
For example, if the candlestick crosses the blue line at the bottom, just count the 2 to 3 candlesticks that form bullish as long as they cross the blue moving average, that's a sign were you should take a long position, in accordance to my assessment.
Depends on your preferences. If you are those who like to buy at a dip, then yeah. Down for two weeks sounds great already, whilst for the others, they like to do a Dollar Cost Averaging (DCA). So any price would do on them. It still depend on the crypto though. Bitcoin is usually the coin the users have been DCA'ing, as it still can recover but shitcoins are only good for the short term and it's best to buy them just before their first pump (if ever they will). This is why it is also advised to put only small amounts on them. As a spot trader, you must be trading right after you buy the coin but waiting for a week-long must be for the investors already.
I don't like rushing when I trade. I don't have big investments to trade. I don't do day trade. Usually I take 5% to 10% profit from each investment. I focus on one token at a time. For example, I bought WIF last week and each cost me 3.27 and I sold them all at 3.62 which is not bad. I had a $40 profit which is enough. It's not like I couldn't buy more WIF, but I decided not to invest a lot. There is a always risk of market correction.
How do you think my strategy is? However, one more thing to mention is, I can wait as long as the market wants me to wait. If I am stuck, I mean my token is below my buying rate, I don't sell it in lose. While I will wait for a pump, I will focus on another token.
This is very dangerous. I mean the part that you said you will not sell while the coin is not favouring you. What if the meme coin started to fall and bear market came and fall more until it lost 25x of its price? This can happen and it will definitely begin before bear market begins but which would be followed by more fall during bear market.
I agree.
It's either a week or two or holding for the alt season (which would be in 2025 and a lot of time for it is needed, BTC is still strong and we are not done with it at all yet).
Keeping and making a plan on a weekly basis is good in my book as well.
Though I mostly hold and trade only the coins that may be flipped due to a good potential.
Memes are created to gamble.
That's their gist - you speculate on the mood of the community and its holders essentially due to them being created each second in the quantities of thousands.
It's better to trade newer alts than memes.
FYI, I am not planning to buy meme tokens that pump 20% a day and dump 20% a day. I always want to pick a somewhat established token that has been around for a while and is less volatile compared to others. Even a 5% profit is good enough. Meme token trading is seasonal. Still, no one can predict the meme token's price. So, It's not a good idea to invest in a meme token and wait for a long time to pump.
Still, if someone wants to invest in meme tokens, they could do it with minimal investment. Also, meme tokens has some categories, people should not go for low cap meme tokens that may dump 10x a day.