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FTTBTC – a pullback in an uptrend for BINANCE:FTTBTC by thesimpltrader

Simple setups which are almost *obvious* are often the best ones.
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

FTT is the exchange token for the FTX exchange. Here is what I see on the H4 timeframe for FTTBTC

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 bullish move that preceded it

3) Clear support –

– There is a clear support zone at 0.00135 to 145, that has caused a bullish reaction before. There is another support area below it – 0.0012 to 125

– Also, as a nice confluence, the upper zone lines up with the 20-Day EMA ( which acts as dynamic support in trending markets )

4) Price action on approach –

– We can see wicks appearing on the downside as price approaches the support area – a good sign

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”

1) Entry

There are two ways to enter that I use (depends on personal preference)

1 – I would enter directly one price is in the support zone ( 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 bullish candlestick , ideally with good volume , at a support. This could be a lower wick pinbar or an engulfing 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 EMA .

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.

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