Detailed analysis of the FIL/USDT pair chart

Analyzing charts according to Price Action focuses on current price action and support, resistance areas to evaluate the strength between the buying (bulls) and selling (bears) factions.

1. Identify support and resistance areas • Strong support: • Price range 4.8 - 5.0 USDT: The price has touched this area many times and bounced back, indicating that this is an important support area that buyers protect. • Resistance: • Price range 5.4 - 5.6 USDT: The price encounters difficulty in surpassing this range. The selling side is exerting strong pressure here. When the price approaches these areas, you need to carefully observe the price action to determine which side has the advantage.
2. Recent Price Action • Previous candle: • Small-bodied candles with long wicks appear near the 5.0 USDT support. This shows hesitation between the buyer and seller sides, but the buyer side is trying to push the price up. • Current candlestick: • The price is slightly increasing from the support area with small bullish candles, but the low volume indicates that the buying force is not really strong.
3. Determine the buying and selling side • Buying force (bulls): • Strongly defending the 5.0 USDT support zone. • If the price exceeds 5.4 - 5.6 USDT, the buying side will gain control. • Sell side (bears): • Currently gaining advantage in resistance areas near 5.4 - 5.6 USDT. • If the price breaks below the 5.0 USDT support, the selling side will take control and pull the price lower.
4. Signs from candlestick patterns • Doji candlestick pattern or small candlestick near support: Indicates indecision. The selling side is weakening, but the buying side needs more momentum to break out. • If a Pin Bar (with a long tail pointing downwards) appears: This will be a good sign for the buying side to take control. • If an Engulfing candle appears: A large bullish candle engulfs the previous bearish candle, indicating a strong buying side and a higher likelihood of price increase.
5. Trading strategy based on Price Action Scenario 1: Price rebounds from support • Signs: The appearance of bullish candles with large bodies, closing above 5.2 - 5.3 USDT. • Action: Buy at the breakout price or when the price rebounds to check the support area at 5.2 USDT. • Target: Resistance at 5.6 USDT or higher. Scenario 2: Price breaks the 5.0 USDT support • Signal: Strong bearish candle with a large body and closing below 5.0 USDT. • Action: Sell when the price breaks below the support zone with high volume. • Target: The next support area around 4.5 USDT. Scenario 3: Price squeezed between support and resistance • Signs: Small candle, narrow body (sideways) appears in this area. • Action: Wait for the price to clearly break out of support (5.0 USDT) or resistance (5.6 USDT) before taking action.
6. Market psychology • Buying party: Trying to accumulate to push up the price, but the force is not strong enough. • Selling force: gradually losing momentum at the support area, but still controlling at the resistance area. Conclusion: • The price is currently consolidating near the 5.0 USDT support. The next move will depend on whether the price breaks the resistance or support zone. • Monitoring: Candlestick patterns such as Pin Bar, Engulfing, and volume to determine precise entry points.