Hey guys, I will show you my favorite strategy on how to know when a coin is about to pump massively. This method is one of my favorite ways of making money in the market daily because it helps in making decisions on the next coin to buy for massive gains as it gives me the early entry signal.
Importance of Entry and Exit Strategies for All Traders
Whether you are a beginner or a pro trader, there is always the need for a good entry and exit strategy. You don’t need to buy a coin that is already in an uptrend because the trend may end up reversible against you and you may lose your money. What you need is to enter into a trade before the coin moves, and this is what you will learn.
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Step One: Using Cohencheco.com
So the first step is going to this website called cohencheco.com. Cohencheco is one of the largest cryptocurrency data aggregators in the world. It covers all the information around crypto prices, updates, and news. Here is the first page you see when you type coinkeco.com in your browser.
Step Two: Choosing the Right Exchange
The next step for this strategy is the exchange you are using to trade. You can use any crypto exchange of your choice, but for this video, I am going to be using Binance. So what you need to do once you are on this page is to search for Binance on this search bar here. Scroll down to this place they write exchanges and select the first one, which is the Binance exchange, and it will take you to this page.
Identifying Hidden Gems on Binance
This page shows the total trading volume of coins on Binance. As you can see here, this is the 24 hours trade volume on Binance calculated in USDT. It shows the number of coins that are being traded and the number of pairs. Our duty here is to scroll down this page and find among all these coins the unpopular ones, or as I normally call it, hidden gems because these coins have made me a lot of money.
Finding an Unpopular Coin: Smooth (SLP)
All these pairs you see here are what I am interested in trading, and it means that there is hidden potential in these coins, especially the ones that are not yet popular. So what we are going to do now is to look for one unpopular coin. As we scroll down further, you can see all these first 12 are already popular coins, so we keep scrolling.
Analyzing Smooth (SLP)
- I think one of those coins we are looking for is this one in number 18 called Smooth or SLP.
- The coin is unpopular, and as you can see here, it has a trading 24 hours volume of over 200 million US dollars.
- This means that a lot of people are interested in the coin, maybe because of its utility or maybe there is important news coming or maybe any other reasons which you might not know.
- But all you need to understand is that the more buying volume it has, the potential for it to pump to the upside.
Evaluating Market Capitalization and Supply
Let’s click on this coin to get more information about it. Oh, this is massive. As you can see, it has already gone up 30.7% in the last 24 hours. We might be late, but let’s scroll down to see if we can buy or not. As you can see, it has a market capitalization of over 172 million US dollars and a total supply of over 2 billion. That means that the possibility of the coin to go up in the future is high.
Considering Another Coin: Gala
Will you look at the daily chart down here? You will see that the coin has really pumped much higher in the last 24 hours and it can consolidate. So I think we are going to look for another coin. As we go down again, I think we can check this one called Gala. It also has a trading volume of over 200 million US dollars and it is also an unpopular coin. This is it, I think this one will make a nice buy.
Analyzing Gala’s Performance
It has only moved up 9.7% so buying now is not that a bad idea. Let’s scroll down to the chart and see what it looks like. Yeah, this looks so good. You can see that in the past 24 hours ago the coin made a massive move to the top and it’s right now consolidating. If we enter a position right now, we will go up with the price.Analyzing Gala’s Performance
Using Trading View for Entry and Exit
| Step | Description |
|---|---|
| First | Let’s go to Trading View and see what the chart looks like. |
| Entry and Exit Position | I will show you how my entry and exit position may look like. |
| Trading View Search | In Trading View, I will click on this top right corner here and search for Gala USDT and select the coin. |
| Chart Analysis | As you can see, the chart made a massive move to the upside and then made a pullback to the downside, another move to the upside, and then another pullback. |
| Key Levels | So this place is a key support level and up here is a resistance level. |
Drawing Fibonacci Retracement Levels
What I will do next is to bring my Fib retracement tools and draw it from the previous swing low to the previous swing high. This will help me to determine my entry and exit level. These Fib levels always act as an end of a pullback, especially the 0.382 level, 0.50 level, and mostly the 0.618 level. Traders refer to these three levels as the golden zone.
Making a Buy Decision Based on Fibonacci Levels
As you can see, this is exactly what has played out in this chart. The market made a new high, pulled back to the 0.382 Fib level but eventually broke it to the downside and was supported by the 0.618 Fib level. So the Fibonacci retracement level of 0.618 level is a good place to enter a position. But as you can see, we could still enter a position now because the price is supported by the 0.382 level. If this candle closes below the support level, we can wait for another confirmation candle at the 0.618 level.
Setting Profit Targets
For me, I enter a buy position now and target the zero Fibonacci retracement level as my take profit, which is above 31% profit. But I will take some profit at these resistance levels because the market might get rejected again at this point. If I have taken some profit there, which is about a fifteen percent gain, I will not lose any money if the price bounces back.
Key Tips for Trading Success
Here are a few things that will help you make a good trade with this strategy. First, you need to identify the previous swing low and high. Secondly, draw the Fibonacci retracement tool from the swing low to the swing high. Thirdly, wait for the market to consolidate to the Fibonacci retracement level of 0.618 and finally wait for a confirmation candle to the upside and enter your trade.
Conclusion and Upcoming Content
So that’s all you need to do. Next week, I will post where I’m trading the strategy for eight hours straight and showing all the trades