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🔹 Donny

Getting Off the Sidelines

One of the most challenging aspects during times like these is maintaining a safe position. It seems that every time you want to buy something, it has already pumped up and is trading at levels where it is risky to take long positions. So how do we do it? How do we safely get involved with longs in bull markets? Let's talk about it.

We'll be going over three different methods, each of which is a technique I use regularly.

1. Buy The Dip

The obvious one everyone is familiar with: buying the dip. However, let's discuss some techniques for success here.

For long-term positioning on bullish assets across any market (things like the S&P500, Gold, BTC, etc.), we can keep it super simple:

If the price drops 15%, buy some; if it goes down 25%, buy more, and so on. This is a straightforward way to get involved that I highly recommend for long-term positions, but it's probably not what you're looking for.

An alternative is to use Fibs. Draw a Fib retracement from swing low to swing high, then look to the 0.382 and 0.618 Fib levels. As the price bottoms out on either one and starts curling up, we can take our buys. This avoids trying to "catch a falling knife," which can result in buying too early and price dumping much further than our entry point.

2. Rolling Trades

One of my favourite methods for getting involved in big pumps is to use the low timeframes. Whenever you see a chart that's trading up vertically on the daily timeframe, chances are that on the hourly or 15-minute timeframe, there is consolidation and normal trade setups. When the higher timeframe is in a strong trend, we can become more aggressive with targets and even dedicate chunks of our trades to higher timeframe moves.

And that's exactly the trick: by using low timeframes, we can grab aggressive trades with tight targets, hit quick profits, and then roll the remainder of the position into a longer-term swing. Consider the recent example I took on PENGU.

I noticed that the price was consolidating on the hourly chart, above a major Fib level, while the daily chart was pumping vertically. I then used the ascending line of support to gain buy-in, with an invalidation if it broke market structure.

I then TP'd some on the initial pumps to effectively reduce my risk for the trade to $0 and then ran the rest of the position to much higher targets.

3. Accumulation

While it's a bit of a cop-out, the best method for winning during the pumps is to be positioned beforehand. Most major pumps only emerge after periods of boring consolidation, often when most people are not paying attention.

The boring times are the times of opportunity. While we didn't have as many chances this past pump, there were still solid entries before the pump. For example, back in early July, we played this Bitcoin breakout and retest, which gave a few days to enter around 108K before it vertically pumped to the next macro target at 122K. Or even the daily liquidity sweep around 100K, which you could've played to the trendline resistance to secure some profit and then let some run for the breakout.

Taking lots of little bets during consolidation has made it possible for me to catch almost every single pump on Bitcoin in the past 3 years, while I often take minor losses on times where I was wrong, due to sizing more on the high conviction buys and the sheer amount price pumps vs how tight i'd keep my stops effectively made sure I profited piles of money these past few years employing this strategy.

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