As we transition into the weekend, the market typically enters a phase characterized by low-volatility movements. In light of this, I dedicated a considerable amount of time yesterday to a thorough analysis of #UMA, focusing on its trading volumes and key levels. My approach encompassed psychological aspects and liquidity points, given the asset’s structural pattern of “Impulse, Correction, Impulse (expected).” The goal here is to identify an opportune moment to adopt a long position, aligning with the trend’s anticipated continuation.
For the trading analysis of #UMA, I relied on the 1D Time Frame as the foundational basis for our decision-making process. This choice stems from the observation that smaller time frames often present a multitude of ambiguous structures and deceptive breakouts that lack solid price consolidation—elements that posed clarity challenges in my analysis yesterday.
At present, I’m monitoring for a potential dip within the price range of $4.033 to $3.739, which I believe will present a suitable entry point for a long position. In addition to this, I’ve identified a secondary zone, marked between $3.058 and $2.747, serving as a strategic position for further engagement. My expectation from these identified ranges is a reversal pattern that could potentially add a premium to the asset’s value.
Furthermore, to facilitate a deeper understanding of market dynamics, I have meticulously outlined various levels on the trading chart, highlighting their significance. The process is straightforward, with one critical caveat: the importance of adhering to position volume limits. It is advisable to allocate no more than 2-3% of one’s deposit to any given position, irrespective of whether the account balance stands at $1 million or $100. Disregarding this guideline can significantly increase the risk of financial jeopardy, regardless of the initial deposit size.