Hey folks, I've been diving deeper into technical analysis for crypto, mainly focusing on Bitcoin and Ethereum. I'm getting a bit more comfortable with identifying trends using moving averages and spotting potential support/resistance levels. My current challenge is figuring out the best time to add to a position that's already moving in my favor.
For example, let's say I entered a long position on BTC near $60K based on a confirmed uptrend. The price has now moved up to $63K, and the trend indicators still look strong. Should I be looking for a small pullback to add more, or wait for a clear breakout above the next resistance level?
I've read about scaling in and scaling out, but applying it in real-time feels tricky. I worry about adding to a position only for it to reverse, thus negating my initial good entry. On the flip side, not adding more means I might be leaving potential profits on the table.
What are your go-to strategies or indicators for deciding when to add to a winning trade as a beginner? Any specific patterns or confirmations you look for? I'm particularly interested in how volume plays a role in confirming the strength of the trend before adding more capital.
Appreciate any insights or experiences you can share!