On the chart $ASTER a classic market dynamics unfolds. The asset's price demonstrated confident and almost uninterrupted growth, which is a sign of strong impulsive interest. However, each such impulse, like a pendulum, sooner or later reaches its extreme point and begins to move in the opposite direction. The asset is currently in such a phase: it has approached a key price level while simultaneously showing signs of technical overbought conditions. The RSI indicator has stalled at extreme values, which does not foreshadow an immediate collapse, but clearly signals a high probability of a pause or pullback. This state of the market can be compared to a stretched rubber band — the more it is stretched, the more powerful the return movement can be.
The main task now is not to give in to emotions and not to try to buy at the very peak of the wave. The history of the market has repeatedly shown that the most profitable and safest points for entry arise not at the moment of universal euphoria, but during a short-term correction, when weak hands take profits and the trend tests its strength at supports. Therefore, the logic is as follows: wait until the price retraces part of its rapid rise and approaches the zone where new buyers may activate, having seen a more attractive price. Entering a position on such a pullback will have a significantly more favorable risk-to-reward ratio.
Long. Entry: $0.6180. We expect a price pullback to the designated zone and confirmation of strength in the form of a reversal pattern on the 1-hour timeframe.
Target 1 (TP1): $0.6400. The first target is a return to the area of the recent maximum for partial profit taking.
Target 2 (TP2): $0.6600. The second target is in case of continued momentum and new highs.
Stop-loss (SL): $0.5950. A clear level below key support. Its breakout means that the pullback has turned into a full-blown decline, and the initial logic of the idea is no longer relevant.
The true strength of a trend is tested not on the ups, but on the ability to bounce back after a natural correction. Patiently waiting for such a point is a strategy, not inaction.
Question for you: In such situations, do you find it psychologically harder to wait for a deep pullback, fearing to miss the move, or to enter at the very peak, hoping for continued growth?