POL +48.4% (Directional Strategy Resonance)
Trade analysis based on volume: absorbing market sales, creating a local shortage, and locking in a position when buying becomes less effective. Objective entry and exit based on the impact of volume on price.
Table of content
Coin: POL/USDT
Risk: high
Level of understanding: beginner
Reasons for entry
Cluster chart: within a locally ranging consolidation, large volume clusters began to form (blue rectangle), inside which market sell orders were dominant (red rectangle). However, despite the applied pressure, the price stopped reacting with further decline and failed to update the local low (red line). Such market behavior indicates signs of a local deficit and weakening pressure from sellers.
In the Dashboard
Delta / Volume balance: analysis of aggregated data across all pairs and exchanges confirms the picture observed on the cluster chart. During the analyzed period, market sell volumes clearly dominated, which is evident from the delta histogram (red rectangle and arrow). At the same time, the price did not show a decline, indicating the presence of limit demand ready to absorb the entire incoming market sell volume and form local support.
Reasons for exit
Cluster chart: from the entry point, the price increased by 48.4%, which qualifies as a significant price movement. After that, a noticeable pullback formed, within which market buy orders continued to appear (rectangle and arrow). Such dynamics indicate a decrease in the efficiency of buying pressure and a potential shift of initiative toward sellers, making further position holding less justified from a risk perspective.
Conclusion
The market clearly demonstrated a divergence between volume and price reaction: despite the dominance of market sell orders, the price stopped declining, indicating strong limit demand and the formation of a local deficit. The cluster chart and aggregated delta data made it possible to objectively identify the entry point and manage the move until the stage where buying efficiency began to decline. The subsequent appearance of ineffective market buys and the pullback became a signal to exit, as the risk of further continuation started to outweigh potential returns. This approach allows for systematic market participation, based on the actual behavior of participants rather than expectations.
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