Most IMPORTANT Memecoin Trading Strategy (Order Blocks)

Boxmining

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Description

Ever wondered how certain meme coins suddenly surge in value? In this video, we delve into the concept of 'order blocks,' a powerful trading pattern, to help you predict and capitalize on these pumps....

Ever wondered how certain meme coins suddenly surge in value? In this video, we delve into the concept of 'order blocks,' a powerful trading pattern, to help you predict and capitalize on these pumps. Learn how to draw order blocks, differentiate them from support and resistance levels, and understand their significance in meme coin trading. With practical examples and tips for live trading, this episode equips you with strategies to swing trade meme coins effectively. Remember, the insights shared are for educational purposes only, not financial advice. ●▬▬▬▬▬▬▬Chapters▬▬▬▬▬▬▬● 0:00 Intro 00:47 Understanding Order Blocks 00:59 Drawing and Validating Order Blocks 02:31 Order Blocks vs. Support and Resistance 03:10 Live Trading Examples 03:50 Trading Strategies and Timeframes 05:41 Fundamentals of Meme Coins 07:17 Analyzing Candle Wicks 08:08 Swing Trading with Order Blocks 09:13 Conclusion 🌼 GET $30,000 in rewards on Bybit: https://partner.bybit.com/b/boxyt BingX Sign-up Bonus: https://bingx.com/invite/QP0XYB Join our Discord: https://discord.gg/UgJd5JPx3Z ●▬▬▬▬▬▬▬Recommendations▬▬▬▬▬▬▬● 📲Binance Exchange: http://boxmining.co/binance 📖 Guides, tutorials and insights: https://boxmining.com/ 🔒Hardware Wallet: http://boxmining.co/ledger 👍🏻Brave Browser: http://boxmining.co/brave ●▬▬▬▬▬▬▬▬▬▬Community▬▬▬▬▬▬▬▬▬● Boxmining clips: https://www.youtube.com/channel/UCjFy3VBgOZanySOLhQu6GaQ Boxmining News Website: https://www.boxmining.com/ Telegram Group: https://t.me/BoxminingFam ●▬▬▬▬▬▬▬▬▬▬▬Social▬▬▬▬▬▬▬▬▬▬▬● Twitter: https://twitter.com/boxmining Discord: https://discord.gg/9qCpqpZm8G Facebook: https://www.facebook.com/boxmining ●▬▬▬▬▬▬▬▬▬▬DISCLAIMER▬▬▬▬▬▬▬▬● Boxmining, including its employees, are not affiliated with and do not endorse or sponsor any token sales, initial coin offerings, initial exchange offerings and/or airdrops (the “token sales”) unless clearly disclosed. The contents of these videos are for information purposes only. Boxmining and its employees do not provide investment advice and do not take one’s personal circumstances into consideration when providing information about token sales and cryptocurrency exchanges or platforms. In light of the above, Boxmining and its employees may hold the cryptocurrencies mentioned in the videos. Please note that there are legal requirements in various countries that may restrict token sales, and furthermore, the access to, and products and services provided by any of the cryptocurrency exchanges or platforms mentioned in these videos. Consequently, the contents of this video are not directed at or intended to be accessible by persons in any jurisdiction where the extension of the availability of the materials to which you are seeking access would breach any applicable law or regulation. Decisions to participate in token sales or to buy, sell or hold cryptocurrencies, as well as the access to and use of any cryptocurrency exchange or platform involves risk. You are also responsible for informing yourself about and observing any restrictions and/or requirements imposed with respect to any such token sale, or the access to and use of any cryptocurrency exchange or platform. You must use your own judgment or consult a professional for advice on such matters.

AI Analysis

This video dives deep into a powerful trading strategy for meme coins called "order blocks," which helps you anticipate and profit from those sudden, explosive price surges. It explains how to identify and draw these crucial zones of strong buying interest, how they differ from typical support lines, and how to effectively use them for swing trading. The core idea is that these areas are where larger, smarter investors quietly accumulate, making them prime entry points for potentially significant pumps.

Here's a breakdown of the key insights and strategies discussed:

* Understanding Order Blocks: Imagine a specific price area on a memecoin chart where it seems like a lot of big buyers are just waiting to swoop in – that's an "order block." You find it by looking for the first "swing low" (the lowest point of a price dip) that comes after a long period of the price moving sideways, almost doing nothing. The magic happens when the price keeps coming back to touch this spot. The more times it touches and holds, and the longer this pattern goes on, the stronger that order block is, suggesting a really explosive price jump might be around the corner once it finally breaks out. It's essentially where large, smart investors quietly place their massive buy orders to get in at a good, low price.

* Order Blocks vs. Support and Resistance: Think of an order block as a super-specific kind of "support" level. Unlike other technical analysis lines that might be angled or channel-like, order blocks are strictly horizontal. It's quite interesting how meme coins, in particular, seem to be drawn to these horizontal lines like a magnet. The price consistently revisits these zones, almost as if it needs to recharge there before making its next move up.

Trading with Order Blocks in Real-Time: When you're trying to trade using order blocks, the ideal play is to patiently wait for the memecoin's price to dip back down and touch that order block zone again. That's your prime entry spot. Because meme coins are so volatile, it’s a smart move to use "Dollar-Cost Averaging" (DCA). This means instead of buying all at once, you spread your buys out, in case the price unexpectedly dips below* your order block. While order blocks offer a great framework for strategic buying and help you avoid just guessing, they're not a guaranteed success every single time; sometimes, they do fail, as seen with Landwolf. They just provide a clear area of interest for lower bids, simplifying your decision-making.

How to Draw and Who It Works For: There are two main ways to pinpoint these blocks: either by finding that very first swing low that follows a long sideways movement, or simply by identifying any level where the price consistently touches and moves laterally within a specific timeframe. Crucially, this strategy isn't for every* memecoin. It really shines with coins that show these specific sideways, range-bound movements on their charts.

* The "Fundamentals" of a Strong Meme Coin: Beyond just looking at charts, the underlying strength of a meme coin matters a lot. This means it needs a compelling story or "narrative," a vibrant and engaged community, effective marketing, and ideally, a known and trusted team of developers. Memes that are easily understandable, funny, and relatable – like those tied to iconic internet culture or specific creators such as Matt Fury's "boys club" memes (Pepe, Landwolf) – tend to gather the strong community support needed for these patterns to play out.

* Why the 4-Hour Timeframe is Key: For swing trading, which is holding positions for days or weeks, a 4-hour or even daily chart is preferred. Why? Because each candle on a 4-hour chart encapsulates a lot more price action and tells a much more comprehensive story about what happened during that period compared to a quicker 1-hour candle. It gives you a broader, more reliable view of market sentiment and trends.

* Deciphering Candle Wicks: Those thin lines sticking out from the top or bottom of a candle, called "wicks," are actually packed with information. A really long wick pointing downwards usually signals "seller exhaustion" – it means sellers tried hard to push the price down, but buyers aggressively stepped in and pushed it back up. Conversely, a long wick at the top suggests "buyer exhaustion" – buyers pushed hard, but sellers took over. These wicks are fantastic indicators of who's winning the "war" between buyers and sellers, giving you vital clues about potential reversals.

* The Swing Trading Sweet Spot: The primary goal with order blocks is to engage in "swing trading," which means you're not looking to make quick flips, but rather hold your position for days, weeks, or even a few months. This approach offers great flexibility. If you enter a trade at an order block with a decent amount of capital, even a 20-30% price increase can translate into thousands or tens of thousands of dollars in profit. This strategy is a personal favorite because it doesn't demand constant attention to the charts and is quite straightforward, making it an excellent starting point for many beginners in crypto trading.

Transcript

Have you guys ever wondered why certain meme coins pump really hard after a period of inactivity? This phenomenon actually happens more often than you think. If you know how to spot these patterns, there's a good chance you can make money trading meme coins. These patterns have a name. They're called order blocks. In this video, we'll show you how to spot order blocks so that you can win your meme coin trades. Keep in mind that meme coins are extremely volatile. I'm not your financial advisor. ...

Have you guys ever wondered why certain meme coins pump really hard after a period of inactivity? This phenomenon actually happens more often than you think. If you know how to spot these patterns, there's a good chance you can make money trading meme coins. These patterns have a name. They're called order blocks. In this video, we'll show you how to spot order blocks so that you can win your meme coin trades. Keep in mind that meme coins are extremely volatile. I'm not your financial advisor. Everything here is for educational purposes only. Let's get started. Okay, first question. What is an order block and how do you draw them? So order block basically means a zone of interest for buying opportunities. You draw an order block from the first swing low, but there needs to be a lot of lateral movement preceding that swing low. And in order for the order block to become more valid, you need to see price coming back, touching that order block repeatedly. And the longer that this order block keeps going, the stronger that order block will be and potentially the sub-sequential pump that's going to happen afterwards. I mean, if you look at the early days of Pumkei, right? So for Pumkei, they had the order block form from 14th of January all the way to the 27th of February. Price had come sideways. It went up, it got rejected, and it come down to the order block. Eventually, once it wants to break out of that order block, you can see the longer the time that it takes to form, it really sends very, very, very, very high. Okay. Yeah. At the end of the day, why order blocks exist is because this is an area of bidding, right? And this works for most older, more mature meme coins, especially with a very large community, large team, because they attract investors, smart investors. And in order for smart or potentially even larger investors to enter a position in the meme coins that they like, obviously, they're going to buy a lot, but they're, they want to do that at a lower bid. That's why order blocks got their name from there because that's where large amounts of orders will be made. I see. So how are order blocks different from support and resistance? Well, they're actually the same thing. So order block is a form of support, but it emphasizes on horizontal TA lines rather than parallel channels or any other sort of angular trend lines. And out of all the assets that I've traded in crypto, meme coins respect horizontal TA lines the most. They are literally like a magnet zone. Price always seems to come down to that zone in order for it to go up again. So just think of order blocks as a magnet zone. It always retraces. Let's take Billy, for example. Let me test your knowledge here, Martin. Okay. Can you see an order block being formed on the four hour time frame? Right here. I see one. This one? Uh-huh. Why? I see that after the dip, there's people buying at this zone, at this market cap, at this price level. You can see price keeps touching this, right? So it's already- Price keeps touching this line. And then there's demand right after that. And right now, it looks like it wants to come down, right? So now is the case where it's happening live. A lot of people are asking me, well, how do you trade this live, right? So ideally, you'd want to wait for price action to touch the order block again in order to have a very good entry, right? And that's where you DCA because even though you've set your order block, not necessarily mean that price will not break below the order block. There are cases where the price just keeps going below the order block. So for Landwolf, last month, Landwolf had a very strong order block going here. You can see whenever price touches here, it gets absorbed by the market and back and forth, back and forth, until finally it rejects below the order block. It tries to reclaim, but it fails. And currently, it is still in price discovery for Landwolf. So there are cases that order blocks don't always work. It's just a structure for you to follow, limiting your choices, making it easier for you to make your buys at where, right? Instead of looking at it completely, it's picking a random spot to buy. The order block gives you an area of buying interest. That's basically it, right? It's an area for lower bids. At the end of the day, when you draw your order block, there are two ways for you to draw an order block. The most reliable way is to find the first swing low and there has to be lateral movement proceeding next swing low. Then just draw out to the right, right? Your first point, your swing low. And another way that you can draw an order block is clearly price action touching that point. It doesn't have to be a swing low. As long as there's a lot of lateral movement in that time span, where price action always comes to one level, that can also be an order block. I see. Yeah. Okay. I better take some notes down. So does order block work for every meme coin? Uh, not all meme coins. On the TA level, it needs to have these sort of movements. Long lateral movement where it's stuck in this range just above or inside this order block. That's on the TA side. And on the fundamental aspect, we're talking about strong meme coins in terms of narrative, in terms of community, in terms of marketing, who is it built by, who are the devs, right? So memes are very easy to talk about and a lot of people talk about on Twitter, right? You can take the Matt Fury meme coins like Pepe, Landwolf, they're easy to understand. There's a story behind them. Well, apparently, they're part of the boys club created by Matt Fury. So stuff like that, you know, stuff that are easy to understand, stuff that are funny, relatable. So why use the four hour time frame? What are the differences in the different time frames here? That's a good question because I want to see a lot of action within one candle. The same principle when it comes to trading crypto in general is, uh, if you're looking at mid to long term plays, when you're looking at swing trading, four hours to daily is a good choice. All right. And plus, if you're on the one hour time frame, one candle equals one hour of action, whatever happened in that one hour. So the more action within one candle tells a lot of stories. So four hour is a good storytelling for me. It tells me what exactly happened in that four hour. The wicks tell a lot of story about the candle and especially, you know, for a four hour candle, that's a long time. The wicks tells you specifically about exhaustion of buyers and sellers. Usually when you see like a very long wick at the bottom, it means seller exhaustion. All right. And if you see long wicks at the top, it means buyer exhaustion. So wicks are great indicators of exhaustion. Because at the end of the day, what's happening here is it's a war. It's a battle between buyers and sellers. Bears versus bulls. Jeter's and hotels. Exactly. So this is a whole storytelling for you. It's a beautiful story for you to read. Honestly, like nothing is more beautiful than a chart. So when you're trading order blocks, the primary goal here is to swing trade. So you're in this position for more than a couple of days. It could even be weeks or even months. Okay. But it does lend you flexibility because if you enter at the order block zone and price does go up at like 20, 30 percent. If you were to enter with size at the order block, even at 20 to 30 percent, you would have made thousands or even tens of thousands of dollars. That's how these people right here are able to do it. You can see this person, you know, risked a lot of money, but also ended up making a lot of money. Wow. That is a lot of information there. Thank you so much for that. Until next time, I guess, when I have more questions. Yeah. And unpack that. For sure. There's a lot more strategies out there, but this is my bread and butter, especially if I don't want to stare at the chart all day. And that's why I recommend this strategy for you because this is very flexible. This is very easy to understand and it's mostly swing trading position, which is rather the default playstyle for a lot of beginners, right? All right, guys, you know what to do? Smash up the like button and subscribe to the channel if you want to see more of these type of content talking about our strategies and experience in meme coin trading. There's a lot more aspects to this as well. There's also risk management. There's also sniping. There's many, many things that you can, we can talk about here in meme coins. Shining out.