How to find resistance during downtrend

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?

  1. find resistance
  2. 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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