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DOT +470.07% (Resonance Directional Strategy)

Reading time: 3 min
DOT +470.07% (Resonance Directional Strategy)

Low-risk DOT/USDT trade analytics that even a beginner can understand.
Entry was justified by volume growth without price reaction to sales and supported by the assessment from the heat map and Dashboard.
Exit - against the backdrop of increased sales, the appearance of limit densities from above and a price deviation of more than 3 tbsp. deviation.
Result: +470.07% profit. A great example of how volume analysis helps make informed decisions.

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Coin: DOT/USDT
Risk: low
Understanding level: beginner

Reasons to enter

Cluster chart:
As the price rose, the traded volume increased, this can be seen from the formed clusters (blue rectangle).

Volume sales (red rectangle with an arrow) did not lead to a significant price decrease.

Cluster chart

Heat map in Z-Score mode and by volume: Also, abnormal limit clusters in the form of bright spots began to appear under the current price (marked with rectangles).

Heat map HIPPO

In Dashboard
Delta/Balance by volume: Aggregated to all pairs, sales dominate, but the price is no longer falling, and the balance has begun to shift towards buyers (marked with a green arrow).

Change in price per unit of volume: Pressure from the volume of market purchases on price changes looks more effective in comparison with sales - noted how the lines began to diverge (black rectangle).

Aggregated data - Dashboard

Exit reasons

Cluster chart:
As this movement continued, the traded volume increased significantly (blue rectangle). And extreme volume sales have already started to move the price down (red rectangle with an arrow).

Cluster chart

Heat map in Z-Score mode and by volume: On the heat map above we see abnormal limit densities, limits on sale (blue rectangles).

Heat map HIPPO

In Dashboard
Delta/Volume Balance: Market order balance started to shift towards sales (red arrow).

Change in price per unit of volume: The pressure of market order volume on price change started to converge - this can be seen visually on the chart (black rectangle).

Z-Score (price): Purchases have deviated the price by more than 3 standard deviations (blue arrow), which is an abnormal value.

Aggregated data - Dashboard

Summary
We managed to secure a profit of +470.07%.

Cluster chart evaluation Result

Conclusion

The trade demonstrated how a change in the balance of market orders and the appearance of abnormal limit clusters can indicate a potential change in direction.

Initial sales failed to lead to a decline, and the indicators from the Dashboard supplemented the potential hypothesis for a long position. However, as the movement continued, the increased sales volume, the appearance of dense limit clusters above and a price deviation of more than 3 standard deviations became arguments for taking profits.

Such scenarios show the importance of complex analysis, where a combination of volumes, market demand and limit orders helps to make a timely decision to enter and exit a trade.

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