Profitable Strategies for Trading Meme Coins

So welcome back to the Finance Value Guy and in today's video I'm going to be showing you guys how you can actually trade meme coins so you can actually make a profit rather than making those tons of losses that we all know you've been making. So let's take a look at two examples along with some diagrams that are going to help you and show you exactly where price is going. No it's not clickbait, these charts are going to show you exactly where price is going. So this is what the professionals are doing so it's time you get in on it too. So let's take a look at this chart right here called Chadcap. This is a meme coin that went pretty viral the other day, but because I know exactly how to chart, I know exactly where I'm going to take profits and exactly where I'm going to sell at. So basically what you need to do guys is you need to make sure that you become best friends with the one hour and the four hourly chart. Guys, these two things are going to save your life when it comes to trading meme coins. Now I do know that yes, if you're just there when the coin has launched, it is a lot harder to buy in at those levels where it's even like, you know, longer than four hours old. But of course, for coins that are longer than one to two days old, this strategy will work. So what you need to do is you need to make sure when you're on this chart on TradingView, you switch over to this 1H. You can see it says 4H, it says 1H. That just means that every single bar is one hour. Now what you need to do is you now need to get yourself a horizontal rate, and then you need to draw some very basic support lines. So click this button, then you can see it says horizontal rate. And now what we need to do is we need to draw some super basic lines that are going to give us a guide on when to buy. and sell. That way, we can actually make money even if the coin goes to zero. Let me show you guys what I mean. So what I mean by this, guys, is that let's say, for example, we can see on the hourly that price action topped at this level. So I'm going to place my horizontal ray right here, just like that. And if you want to change the line to dotted or any other thing, you can click style and then you can click line and that way you have an actual line. Now, what we can also do is what we want to do when we draw our levels is we want to make sure that we zoom in and we look at where the. bar closes. We don't want to pay attention to these thin wicks. We want to only pay attention to where the bar closes. So for example, we can see, take this tool again, we can see that all of the bars seem to close and converge around this area. So that's going to be another line. Then we've got another area around here where the bars seem to close. So I'm going to place another area around here. Now, what this gives us is this gives us our support lines. Now I like to make these lines a little dashed so that I can actually see through them a little bit, but this is going to help us because this now allows us to know where price action needs to get supported at And if not, we sell underneath that price. So you can see right here, when price action went up first, it came back down to this line. Of course, it came down. You can see it then formed this area right here, which of course, as you can see, when I switch to the 15-minute chart, it looks super, super different, but that's why we're on hourly chart, so we can actually see where these bars close. And you can see now that when price action went back up to this level, once it managed to lose this support level, and the reason it lost this support level right here that you can see is because it came up, it tested the level, went up and it tested that level again. When price action tests a level more than once, it's usually likely to break down. And so when price action broke down this level, this is when I exited my positions because we already had the initial pump. And on second pump, you can see the support didn't hold. Because of this, I exited my position here. And if we look at the price range tool, you come down here, you click the price range, you can basically see how much percentage gains you would have lost if you managed to hold on. So now that we know exactly how much we've lost. Here's how you can use this to exactly understand where price is going. So you can see we've got all these levels going on. And for now, I'm going to delete this one. But you can see that when price action also came back down to this level, you can see that it lost this level and got supported by the initial level all the way back here. So people wondering why is the coin going up again? It's because it's being supported by this recent high over here. Now, because of that, we know that when price action comes back to round the white line, that's when we want to get out, get our last bags, and of course, avoid the inevitable decline. And this is something that I think... most people aren't paying attention to when they're trading these meme coins and i wanted to make this video to kind of educate you guys so you can understand exactly where you should be buying and selling now of course if you're someone that's into the buying take a look at this chart so i've already drawn some lines here but if i delete them it might become very confusing to as what you're looking at a lot of people look at this chart and they see a bunch of lines they see a bunch of nonsense and that's completely understandable what you're looking at to the average person is very confusing but as long as you pay attention to certain patterns in technical analysis, you can gauge a real understanding of where the price is likely to go. So when we were looking at this first area, one of the things I noticed that made me buy into this coin early, and firstly, this is not a recommendation to buy this coin, all meme coins probably will eventually go to zero. But what I'm talking about here is that we can see that this area had a sort of squeeze and then price moved upwards. So let's take a look at the kind of pattern that this is showing. And then let me show you guys exactly how to draw it. So in a technical analysis, this is what we call an ascending triangle. And if you're someone who's buying crypto, this is likely the best pattern that you want to look for to see if your meme coin is about to explode. Of course, there are narratives and many other things that could cause a meme coin to explode. But this is one of the key things that allows you to understand. if your coin is about to explode. So let's head on over back to the chart and we can see that if I draw my line right here, I click here, I click trend line and then I just draw it from the bottom and I keep drawing and I keep drawing it through there. Then I take another trend line and I draw across the top of where these bars close and you can see for this one I'm on the 5M chart, I'm not on the hourly chart and there's a reason for that because when you're actually trading these meme coins and they are just starting out, you ideally want to be on the five minute chart. That way you can see where price is getting resisted at. and where price is moving at. And that way you can buy in and understand where price is going to move. So now that we have this ascending triangle, you can see that it's no coincidence after price moved up out of this area, that price section jumped 69%. And I think this is really, really important for those of you that are buying meme coins, because if you see a pattern like this, like an ascending triangle on a meme coin that you've just heard about, it's actually a very bullish sign that this coin is about to explode up further around 50%. to 60%. And if you even want a price target, you can essentially take your trend line, draw it from the top to the bottom of where these lines converge, and then you can place it to the top right here. And then this is essentially your price target to the top of this level. And that's literally what traders do. This is their price target. I'm pretty much simplifying everything, but that is the level that you'd want to get out at if you're just someone that wants a quick trade so that you can profit from these meme coins. Now, of course, you can see right here that price, when it went up, it managed to come... all the way back down to this level right here if I extend this green line. And of course, it got supported at this level. So some people might be looking at the price and they'll be thinking, okay, price is just pumped up, but where do I get in? That's where you, if you've watched this video, you'd extend the line and you'd see, okay, when price action comes back down to 940 area, that's where I'm going to buy in. And if you did that and you bought in, and let's say, for example, you'd held, you'd be able to get an easy 100% gain on your money, which is essentially a double in terms of your investment size, which is really good. Really interesting and really easy as long as you manage to draw these simple charts and graphs. Now, sometimes there isn't these kind of charts. You can see sometimes it does get really messy and that's okay. Oftentimes, I simply won't invest in coins if it doesn't have a clear chart structure. But the point I'm trying to make to you guys is that whilst meme coins are extremely risky, you can reduce the level of risk by understanding exactly where these patterns are. And you can see right here. with a pattern like this ascending wedge. And if we look at this ascending triangle, you can see that this is the exact same pattern that we see here that has a bullish bias and has rising lower trendline support. And all that means is that price is getting supported by this line that's going up. And of course, you can see it's getting rejected by this line that's holding it down. So this is the part of the video where I have a shameless plug to my community where I actually share everything I'm doing in the market a lot earlier. Because of course, I can write a quick post in my community a lot quicker than I can make these kinds of videos. So if this is something that interests you, don't forget to check it out with the first link in the description. I'll be sharing absolutely everything there first. And of course, don't forget to share the video so you can help your friends trade more effectively.

So this is what the professionals are doing so it's time you get in on it too. So let's take a look at this chart right here called Chadcap. This is a meme coin that went pretty viral the other day, but because I know exactly how to chart, I know exactly where I'm going to take profits and exactly where I'm going to sell at.

So basically what you need to do guys is you need to make sure that you become best friends with the one hour and the four hourly chart. Guys, these two things are going to save your life when it comes to trading meme coins. Now I do know that yes, if you're just there when the coin has launched, it is a lot harder to buy in at those levels where it's even like, you know, longer than four hours old.

But of course, for coins that are longer than one to two days old, this strategy will work. So what you need to do is you need to make sure when you're on this chart on TradingView, you switch over to this 1H. You can see it says 4H, it says 1H.

That just means that every single bar is one hour. Now what you need to do is you now need to get yourself a horizontal rate, and then you need to draw some very basic support lines. So click this button, then you can see it says horizontal rate.

And now what we need to do is we need to draw some super basic lines that are going to give us a guide on when to buy. and sell. That way, we can actually make money even if the coin goes to zero. Let me show you guys what I mean.

So what I mean by this, guys, is that let's say, for example, we can see on the hourly that price action topped at this level. So I'm going to place my horizontal ray right here, just like that. And if you want to change the line to dotted or any other thing, you can click style and then you can click line and that way you have an actual line.

Now, what we can also do is what we want to do when we draw our levels is we want to make sure that we zoom in and we look at where the. bar closes. We don't want to pay attention to these thin wicks.

We want to only pay attention to where the bar closes. So for example, we can see, take this tool again, we can see that all of the bars seem to close and converge around this area. So that's going to be another line. Then we've got another area around here where the bars seem to close.

So I'm going to place another area around here. Now, what this gives us is this gives us our support lines. Now I like to make these lines a little dashed so that I can actually see through them a little bit, but this is going to help us because this now allows us to know where price action needs to get supported at And if not, we sell underneath that price. So you can see right here, when price action went up first, it came back down to this line. Of course, it came down.

You can see it then formed this area right here, which of course, as you can see, when I switch to the 15-minute chart, it looks super, super different, but that's why we're on hourly chart, so we can actually see where these bars close. And you can see now that when price action went back up to this level, once it managed to lose this support level, and the reason it lost this support level right here that you can see is because it came up, it tested the level, went up and it tested that level again. When price action tests a level more than once, it's usually likely to break down. And so when price action broke down this level, this is when I exited my positions because we already had the initial pump.

And on second pump, you can see the support didn't hold. Because of this, I exited my position here. And if we look at the price range tool, you come down here, you click the price range, you can basically see how much percentage gains you would have lost if you managed to hold on.

So now that we know exactly how much we've lost. Here's how you can use this to exactly understand where price is going. So you can see we've got all these levels going on.

And for now, I'm going to delete this one. But you can see that when price action also came back down to this level, you can see that it lost this level and got supported by the initial level all the way back here. So people wondering why is the coin going up again?

It's because it's being supported by this recent high over here. Now, because of that, we know that when price action comes back to round the white line, that's when we want to get out, get our last bags, and of course, avoid the inevitable decline. And this is something that I think...

most people aren't paying attention to when they're trading these meme coins and i wanted to make this video to kind of educate you guys so you can understand exactly where you should be buying and selling now of course if you're someone that's into the buying take a look at this chart so i've already drawn some lines here but if i delete them it might become very confusing to as what you're looking at a lot of people look at this chart and they see a bunch of lines they see a bunch of nonsense and that's completely understandable what you're looking at to the average person is very confusing but as long as you pay attention to certain patterns in technical analysis, you can gauge a real understanding of where the price is likely to go. So when we were looking at this first area, one of the things I noticed that made me buy into this coin early, and firstly, this is not a recommendation to buy this coin, all meme coins probably will eventually go to zero. But what I'm talking about here is that we can see that this area had a sort of squeeze and then price moved upwards. So let's take a look at the kind of pattern that this is showing. And then let me show you guys exactly how to draw it.

So in a technical analysis, this is what we call an ascending triangle. And if you're someone who's buying crypto, this is likely the best pattern that you want to look for to see if your meme coin is about to explode. Of course, there are narratives and many other things that could cause a meme coin to explode. But this is one of the key things that allows you to understand. if your coin is about to explode.

So let's head on over back to the chart and we can see that if I draw my line right here, I click here, I click trend line and then I just draw it from the bottom and I keep drawing and I keep drawing it through there. Then I take another trend line and I draw across the top of where these bars close and you can see for this one I'm on the 5M chart, I'm not on the hourly chart and there's a reason for that because when you're actually trading these meme coins and they are just starting out, you ideally want to be on the five minute chart. That way you can see where price is getting resisted at. and where price is moving at.

And that way you can buy in and understand where price is going to move. So now that we have this ascending triangle, you can see that it's no coincidence after price moved up out of this area, that price section jumped 69%. And I think this is really, really important for those of you that are buying meme coins, because if you see a pattern like this, like an ascending triangle on a meme coin that you've just heard about, it's actually a very bullish sign that this coin is about to explode up further around 50%.

to 60%. And if you even want a price target, you can essentially take your trend line, draw it from the top to the bottom of where these lines converge, and then you can place it to the top right here. And then this is essentially your price target to the top of this level.

And that's literally what traders do. This is their price target. I'm pretty much simplifying everything, but that is the level that you'd want to get out at if you're just someone that wants a quick trade so that you can profit from these meme coins.

Now, of course, you can see right here that price, when it went up, it managed to come... all the way back down to this level right here if I extend this green line. And of course, it got supported at this level.

So some people might be looking at the price and they'll be thinking, okay, price is just pumped up, but where do I get in? That's where you, if you've watched this video, you'd extend the line and you'd see, okay, when price action comes back down to 940 area, that's where I'm going to buy in. And if you did that and you bought in, and let's say, for example, you'd held, you'd be able to get an easy 100% gain on your money, which is essentially a double in terms of your investment size, which is really good. Really interesting and really easy as long as you manage to draw these simple charts and graphs. Now, sometimes there isn't these kind of charts.

You can see sometimes it does get really messy and that's okay. Oftentimes, I simply won't invest in coins if it doesn't have a clear chart structure. But the point I'm trying to make to you guys is that whilst meme coins are extremely risky, you can reduce the level of risk by understanding exactly where these patterns are.

And you can see right here. with a pattern like this ascending wedge. And if we look at this ascending triangle, you can see that this is the exact same pattern that we see here that has a bullish bias and has rising lower trendline support.

And all that means is that price is getting supported by this line that's going up. And of course, you can see it's getting rejected by this line that's holding it down. So this is the part of the video where I have a shameless plug to my community where I actually share everything I'm doing in the market a lot earlier.

Because of course, I can write a quick post in my community a lot quicker than I can make these kinds of videos. So if this is something that interests you, don't forget to check it out with the first link in the description. I'll be sharing absolutely everything there first. And of course, don't forget to share the video so you can help your friends trade more effectively.

Transcript for:Profitable Strategies for Trading Meme Coins

Transcript for:
Profitable Strategies for Trading Meme Coins