@spicyofc: ## <b>Many traders think it's ...

Many traders think it's "Wrong" to make money by Longing Resistance or Shorting Support.

I'm a former Prop Trader and I've been trading crypto for 8 years.

I'm going to explain how I bet against reversal traders and win.

This style of trading is my niche.

This article will cover:

I will cover some concepts first and then get into the technical stuff at the very end.

My big "Aha Moment":

It's all about Market Conditions.

The first thing to understand is that ALL strategies will go through windows of time where they:

We want less trades on the left, more on the right.

To achieve this we need to be trading more in "good conditions" and less in "bad conditions".

If the above is understood, it means that:

Optimizing how to define Market Conditions is actually more important than optimizing Entry/Stop/Target rules.

The 2 Main Strategy Styles:

Momentum and Mean Reversion

Most strategies fall under 2 main styles:

Momentum

Mean Reversion

Understanding the Worst Conditions for Mean Reversion

In order for us to Win we need our Counterparty to Lose.

We need to be trading when our counterparty is trading in their Hardest environment to maximize our chance of winning.

LIVE EXAMPLE

price was slicing through every resistance:

An ideal environment for taking a Momentum Long.

Momentum Trade Criteria

Level Selection:

Entry:

Stoploss Placement:

When to NOT take the Momentum Trade:

Knowing when to step on the brakes is just as important as knowing when to step on the gas.

The #1 most important thing to avoid:

Example below ↓

https://x.com/i/status/1947391631310663706

SUMMARY:

Longing resistance and shorting support can work really well in the right environment.

Top 3 things I look for:

Top 3 things I avoid:

Enjoy the Alpha 🤝