How to find resistance during downtrend
After a big distribution zone above 9300 (from 21/Jun till 24/Sep), #BTC market is producing movements like “2 steps down – 1 step up”. This is downtrend condition, and sell&hodl is the most reliable idea. When entering shorts?
- find resistance
- sell close to resistance (during test of resistance) and place SL above resistance.
Current chart shows how to find resistance. Look the volume&price. Find ND+SB confirmed pattern.
- #ND is No_Demand with weak attempt to advance on exhausting volume
- #SB (or SW) is Supply Pressure Bars/Waves – accelerating decline amid increase of volume.
Plot the Zone at these levels. It would be a rational RFSB – resistance from Supply Bar. Wait for test and join bearish team after confirmations on the faster TF (such as minor buying culminations / SLKT).
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