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$ALGO Analysis:
For cryptocurrencies that have already experienced significant gains, what should we do (for example, $TRU these days)?
Be patient and wait for a pullback. Prices won't keep rising forever, and they won't keep falling forever. Never get caught up in chasing the pump, or you'll become a sitting duck.
Smart money (whales) often sell off in stages after a sudden price surge. If the price continues to rise, smart money (whales) will add positions in areas with high liquidity (because large trades in high-liquidity zones won't cause drastic price swings, allowing big orders to be absorbed smoothly).
Therefore, we need to identify areas with high liquidity and trade alongside smart money (whales). This maximizes our chances of successful trades.
For $ALGO , the 0.092 - 0.097 range is a zone of high liquidity. We should trade within this range and set our stop-loss (SL) just below this zone.
The risk-reward ratio (RR) obtained here is 19.77 (the difference between us and most others is that most are gambling, while we are trading).
To improve the probability of success, if multiple key levels converge with high-liquidity zones, the more levels that align, the higher the probability of a successful trade.
Of course, we can also initiate short positions at the staged top, which is called hedging (see Figure 2).