MIRA +62.4% (Directional Strategy Resonance)

Coin: MIRA/USDT
Risk: high
Level of understanding: beginner

Reasons for entry

Cluster chart: After an impulsive decline, the price moved into a sideways consolidation, where significant volumes of market sell orders began to appear (red rectangle). However, despite this pressure, their effectiveness noticeably decreased — the price failed to update the local low (red line).

Such a reaction indicates the formation of signs of a local deficit on the sellers’ side and a weakening of their initiative. When significant selling volumes no longer lead to a price decline, this often becomes the first signal of a possible shift in initiative or a local reversal.

In the Dashboard
Delta / Volume balance: Aggregated data across all pairs and exchanges fully confirm the observations from the cluster chart. During the analyzed period, the market was under pronounced pressure from market sell orders, which is clearly visible on the delta histogram (red rectangle).

At the same time, the absence of a price reaction to this volume indicates active absorption of all incoming market volume by limit buy orders. This reaction forms local support within the current price range.

Price change per unit of volume: Additionally, it can be seen that the effectiveness of market orders’ impact has begun to shift in favor of buyers (black rectangle). Less volume is required to move the price upward than to push it downward, which further confirms the weakening of selling pressure.

Reasons for exit

Cluster chart: From the entry point, the price moved more than 60%, which corresponds to over eight standard price movements (black rectangle and arrow). Against this background, volatility noticeably increased, a significant pullback formed (red rectangle and arrow), and market sell orders began to dominate, indicating that sellers had taken over the initiative.

With a high probability, the market moved into a balance-search phase. Under such conditions, further holding of the position would lead to increased risk, therefore profit taking appears to be the most balanced and rational decision.

Conclusion

This review clearly shows that the key factor when working with volume is not the mere fact of its appearance, but the price reaction to that volume. Despite the dominance of market sell orders, the price stopped updating lows, which indicated a decrease in sellers’ effectiveness and the formation of a local deficit.

Such situations occur in the market quite often, however, sustainable moves are captured precisely when volume is confirmed by price behavior. Evaluating the effectiveness of market orders, combined with aggregated data and statistical deviations, allows for objective decision-making and balanced trading decisions without relying on expectations or forecasts.

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