GALA and NEAR are making news once again due to the popularity of a major analyst in the sector, who recently picked these tokens as examples of how technically well-defined trading levels could transform trading from the domain of speculation to trading based on probability. This note has come out along with comparative charts.
Chart Signals Emphasize Key Reaction Zones
The accompanying graph shows that the price of both GALA and NEAR has been reacting to well-defined areas of support and demand. The analyst suggests that instead of trying to find areas to sell at highs or buy at lows, the price often “makes sense” when it gets to these areas.
In both instances, the charts point to areas where momentum started to slow before turning lower and where price action consolidated or reversed. It appears that these areas serve as critical points where analysis based on risk assessment can determine the next move because one cannot just follow momentum. The formatting of the charts further emphasizes cyclical activity between price levels.
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Low-Risk Setups Through Structure, Not Prediction
As the analyst describes, these indicators show examples of trades where the price does indeed approach areas where there is asymmetric risk. The regions shown in the charts above for GALA and NEAR demonstrate potential entry points where there may be relatively limited downside risk compared to the potential reward for these particular levels to hold.
A clean break below a significant level will mean the trading setup is rendered ineffective early on, and the risk of loss is limited. However, when price abides by significant levels, the opportunities on the upside will be allowed to realize.
Patience Over Precision in Volatile Markets
One aspect of the strategy emphasized is the importance of waiting or patience as an edge. From the chart layout, there are also long waiting periods intermixed with strong directional actions, which support the observation that waiting is an important component of sound trading practices. Rather than making numerous trades, there are now fewer trades with stronger conviction levels determined by market structure.
This strategy fits the current trend in the technical trading world, where traders are inclined towards valid points of invalidation rather than taking strong positions, especially in the mid-cap alternative coins GALA or NEAR.
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