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
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 move that preceded it
3) Clear support –
– There is a clear at 0.00135 to 145, that has caused a reaction before. There is another below it – 0.0012 to 125
– Also, as a nice confluence, the upper zone lines up with the 20-Day ( which acts as dynamic support in trending markets )
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”
There are two ways to enter that I use (depends on personal preference)
1 – I would enter directly one price is in the ( 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 , ideally with good , at a support. This could be a lower wick or an 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 .
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.