Pub (1\2) ⭐
📘 Trading Scenarios for Kite (KITE) Using Support & Resistance Levels 💵
Below are three practical trading scenarios showing how support/resistance mechanics can be used on the spot market. Each includes:
- Entry strategy
- Stop-loss placement
- Take-profit targets
- Why the setup works
- Risks to be aware of
🔹 Scenario A — “Rebound from Support” (Buying the Bounce)
Conditions / Setup
- You analyze the KITE chart on the H1 or H4 timeframe.
- The price has touched a certain level (e.g., $0.095–0.100) multiple times and bounced upward.
- This area forms a short-term support zone.
Trade Plan
- Entry: slightly above the support zone (e.g., $0.102–0.105). This protects you from small fake dips.
- Stop-Loss: slightly below support (e.g., $0.090–0.093).
- Take-Profit: near the next resistance zone (e.g., $0.130–0.135).
Why this works?
- Support levels often hold because many buy orders are placed there. When price reaches the zone, demand increases → leading to a possible upward bounce.
Risks:
- If liquidity is low or a large sell order hits the market, support can break.
- Without a stop-loss, losses may accelerate quickly.
🔹 Scenario B — “Selling at Resistance” (Taking Profit Near a Ceiling)
Conditions / Setup
- You're watching the H1/H4/D1 chart.
- The price has repeatedly failed to break above $0.130–0.135 or $0.140–0.145.
- This creates a short-term resistance zone.
Trade Plan
- Entry: near resistance (e.g., $0.128–0.132).
- Stop-Loss: slightly above resistance (e.g., $0.145–0.150) to protect against false breakouts.
- Take-Profit: back near support (e.g., $0.095–0.105).
Why this works?
- Resistance often acts as a price ceiling where sellers become more active.
If there’s no strong bullish catalyst, price may repeatedly reject this zone.
Risks:
- A breakout above resistance can trigger strong upward momentum.
- If trading spot (not futures), you can only sell your holdings—not short the market.
😅 Liked the post - Subscribe!
Want analytics? - comment!
