NEO +69.17% (Resonance Directional Strategy)
Local deficit in NEO: clusters show buyer strength, aggregated metrics confirm limit support. Step by step: entry, stop, exit.
Table of content
The NEO trade idea appeared as a local deficit was forming: market buys influenced price, while selling did not lead to new lows. For day trading, this is one of the most practical scenarios: selling pressure is present, but there is no result. This means demand is absorbing supply. Below is a trade breakdown using the Resonance directional strategy: the cluster chart shows how price reacts to volume, and aggregated metrics confirm the presence of buyer-side support.
Entry reasons
Cluster chart: buys lift price, sells fail to print new lows
Market buyers are active and push price higher (green rectangles). During selling, local lows are not updated, which indicates the presence of limit support. Buys are present and price is rising. This points to the formation of a local deficit (green arrow).
Dashboard: additional arguments
Limit Delta / Volume Balance:
Additionally, you can note the dominance of buyer limit orders across all exchanges (green arrow). This indicates participants are willing to absorb opposing market-sell volume. This is how buyer-side support is formed.
It is logical to place the stop-loss beyond this support. As long as price holds above it, we can talk about the deficit remaining in place.
Exit reasons
Cluster chart: opposing supply appears
After the rise, a small amount of opposing supply appeared. This increases the probability of a reversal move. At this stage, part of the position was taken off, and the stop was moved to breakeven.
Trade result
We locked in a 69% gain. The edge in this situation came from assessing volume efficiency.
Active market buying was accompanied by rising price, while selling did not lead to a decline.
Aggregated data confirmed the presence of limit support.
Timely partial profit-taking and moving the position to breakeven helped preserve the realized move when signs of opposing supply appeared.
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