Generational Entries in Bull Markets
This strategy leverages the On Balance Volume (OBV) indicator to identify breakout opportunities in altcoins, ensuring you can capitalize on strong market moves. If you missed Part 1, make sure to check it out here
Indicators Used: OBV
Steps to Implement the Strategy
- Scan for Altcoins Exiting Consolidation
- Look for altcoins that are breaking out of their consolidation ranges.
- Apply the OBV Indicator
- Use the OBV (On Balance Volume) indicator with default settings on your chart.
- Identify the Breakout Trigger
- When both the OBV and the price break out simultaneously, this signals a long entry.
Managing the Trade
- Hold Through Pullbacks:
- Continue holding your position as long as any pullbacks in price align with OBV retesting its breakout levels.
- Use Higher Time Frames (HTF):
- Utilize at least 2-4H time frames for more reliable signals.
- Take Gradual Profits:
- Gradually take profits while always keeping a portion of your position (a moon bag) to benefit from further gains in bull markets.
