sixth lesson, point three on how to choose the Coin to work on, look for favorable moments to enter and exit.. (for point one and two see previous posts).

as with everything, there are various ways to operate, but the basic rule "buy the dip" always applies, that is, you wait for a bottom of a decline to buy and you wait for a rise, at first it may be the hardest thing to understand because you need to have a trained eye on the charts and find your own style, and you need to observe multiple indicators and time frames, I personally start from the RSI, it must be strongly oversold (from 19 down), it must also be oversold (less than 25) on higher time frames (generally I work on the 15min and look at the 1h and 4h but you might want to work on the 3min tf and look at the 5min or 15min and 1h..), from there I look if we are close to a support (price level where the Coin in the past struggled to overcome or has already held and rejected the price in the past), it is a good thing to buy on support and in case sell if it is broken with confirmation (you always wait for the candle close to have a confirmation and decide)..

a single peak in volumes is often found at the bottom of a decline, but if you want to avoid trying to catch falling knives, you can wait for signals of a reversal, in any case you never go all in in one shot, you can buy a part and wait for the rest.

take into account these three tips:

1 prices go up and down, so nothing drops infinitely (we're talking about big established Coins) and nothing rises infinitely.. the faster the rise or decline, the stronger the bounce in the opposite direction will be..

2 statistically it is unlikely that when you open a chart, you open it at the perfect moment to enter.. it will hardly happen, generally you need to follow the price trend

3 if you always work on the same coins you will learn to know them, to understand how they move and the important price levels (resistances and supports) and you will have an idea of how much they usually fluctuate