Technical analysis by ITManager_US about Symbol SOL: Buy recommendation (9/29/2023)

When trading, it is important to have confirmations. Confirmations are when price moves in a a particular way which tells us that our setup is valid and even, ready for entry.We have 3 main types of confirmations.1. Trendline BreakThis confirmation is very simple yet very effective. When price is following a trend, you can often find that there's a trendline that can be placed. This trendline is used as a guide.eg. When price stays below the trendline = bearishwhen price goes above the trendline = bullishEntry Method: Entry on break of the trendline with stops below the lowest price before the break2. Break of structurePrice tends to test and respect significant price points.e.g. We can draw a structure level when price rejects a certain price point and assume that when price stays below that level = bearishWhen price breaks above that structure level = bullishEntry Method: Entry on break of structure OR retest of that structure level3. Moving Average Cross OverUsing 2 moving averages can help you ascertain whether price is bullish or bearish. In the crypto market, the 100 and 200 moving averages are often used.eg. When the 100 moving average is below the 200 moving average = bearishWhen the 100 moving average is above the 200moving average = bullishEntry Method: Once there's a bullish cross over (100 over 200), we can assume price is bullish. We can look for pullbacks for entryCOMBINATIONConfirmations can be most reliable when more than one is used at the same time e.g. trendline break and break of structure.Please note that these types of confirmations work with ALL market, whether it is Crypto or Forex.See below for various examples of using confirmations when entering the market, particularly the crypto market.