*A little introduction, this is a model that has been repeated quite a lot in the past, not only in the crypto market but also in the stock market and especially it often appears in coins that increase in price strongly.
* Regarding the model, I took the ZIL/USDT model as an example during the 2021 price increase (I made a lot of money that year). The model consists of 2 parts:
+ The cup drawn in red occurs during the accumulation phase and ends with a price increase. This is the phase where big hands collect goods. When they feel they have collected enough, they start to push the price up with increased volume (white arrow).
+ The handle (yellow line) is formed when the price starts to adjust after increasing because the big players may want to pump to test the supply on the market and those who buy at low prices have a profit-taking phenomenon (People in this stage think that this coin is quite expensive so they often miss out on buying and switch to buying cheaper coins). The price will now move in a narrow range with decreasing trading volume (showing that the supply has run out or is very low, red arrow). If the volume is high, be careful because it is likely that it is at the end of the price increase period.
** How to buy. When this pattern appears with confirmed volume
1. Buy immediately at the breakout time (blue line). If the trading volume is large at the breakout time, then rest assured to buy and go to sleep.
2. Buy when you feel the price range is narrowing + volume is decreasing. This method brings better profit but if the pattern fails, it will fail and you have to wait longer than method 1.
3. Buy when the general market is good. This model clearly shows the law of supply and demand when goods move from weak hands to big hands, the price range gradually narrows, proving that there is not much supply left.
*** Profit: depends on greed.
*** Cut loss: too lazy to write anymore.
Also refer to some other coins like ADA/USDT, ATOM/USDT, ONE/USDT... Damn, there are so many. Add half of the machine, there will be variations, not always the same, so need to be flexible to see the cup-handle model
YES!!!$BTC
