When you’ve traded meme cash for some time however your outcomes aren’t satisfying you may need accomplished it the improper means. On this article, I clarify my prime 4 private methods that I’ve used firsthand for buying and selling meme cash. The methods are based mostly on my expertise in meme coin buying and selling and are a mixture of Technical Evaluation (TA) and on-chain buying and selling.
My prime 4 Methods that I exploit for meme coin buying and selling are:
- Shopping for when resistance turns into assist (TA)
- Shopping for on untouched Assist (TA)
- Sniping newly created meme cash (on chain)
- Copy buying and selling (on chain)
let’s dive into every technique and see what they’re and the way they might help us discover one of the best meme cash to purchase.
Purchase When Resistance Turns into Assist
Our first technique is to purchase a meme coin when a resistance on its chart turns into a assist.
If you’re new to Technical Evaluation(TA) and don’t learn about Assist & Resistance watch this brief video:
In TA phrases, assist and resistance ranges can alternate their roles which means when a resistance is damaged, it could possibly flip right into a assist and maintain the worth again, the identical goes for a assist.
That is the gist of our first meme coin buying and selling technique.
We wish to purchase a newly created coin when its worth breaks greater highs or resistances after which reverses to the touch them — the degrees are actually helps.
The above pic is a newly created coin in its first upward transfer. The worth breaks the excessive, the resistance, after which reverses to it. The assist space is the place we pull the set off and purchase.
One necessary level right here is the way in which we draw our S&R zone. We use the best level or candle’s shadow for the higher band of the extent and the physique of candles for the decrease band, with out crossing any candles’ our bodies.
There are a number of strategies to your take revenue and cease loss ranges however we use the ATR indicator right here.
The reason being…
… since we use a zone for our helps and resistances, the worth distance from our zone to a point, which is 1 ATR(14) right here, signifies that our degree is damaged and isn’t robust sufficient to carry the worth again.
You’ll find the ATR indicator from the indicator part of your charting platform (for instance Tradingview)— it’s free.
ATR, in easy phrases, is the typical vary of candles (14 candles right here) — in fact, it’s a bit completely different and gaps are thought of in its calculation however that’s just about the definition.
All in all, we assume that if the worth passes our line as massive as a median candle, our commerce has failed and we should always soar out of it. In different phrases, our SL is hit.
However what about our TP or goal?
Our TP is twice our SL (2 ATR).
One other model to set your TP is by dividing it into two elements. You possibly can shut half of your place at 1 ATR and let the remainder of your revenue develop till you see a reversal sign. It’s a extra skilled technique so in the event you’re a newbie to meme coin buying and selling it’s best to follow the primary strategy.
Purchase on the First Largest Correction (Untouched Assist)
Our second technique is to purchase a meme coin on its first assist.
On the 5 or 15 minute charts of just about all legit meme cash, we’ll speak about legit meme cash later on this article, you see an upward transfer with no less than two impulsive strikes or waves and a correction in between — the impulsive strikes might be greater than two if there’s a robust hype round a meme coin.
Then comes a big correction which creates a notable low or assist. It could possibly confluence with a earlier resistance as nicely, which makes the extent even stronger.
That is our first untouched massive assist. If you see such setups, it’s virtually assured that the worth will react to and pull again from when it reaches the zone once more.
So we look ahead to the worth to satisfy the extent once more and it’s the place we wish to purchase the coin.
Our TPs and SLs are the identical because the earlier technique; utilizing ATR.
Sniping Newly Created Meme Cash
Our third technique is to purchase a meme coin as quickly because it’s created.
Sniping in buying and selling crypto cash is a terminology referring to purchasing cash as quickly as they’re created and given liquidity.
When somebody creates a meme coin, for it to be tradable, a pool must be created with a pair of cash, the meme coin, and a quote coin — for instance; Bonk/Sol Wif/Sol Myro/Sol, and so on.
The creator of swimming pools or others can then add liquidity to it in order that the coin might be traded.
Right here’s the place snipers who’re really degen merchants step in and purchase cash within the hope of catching the following huge coin, or meme coin in our case, and trip it to Valhalla— an excessive amount of crypto jargon I assume, sorry.
In brief, I imply 100x their funding.
In fact, discovering Valhalla cash isn’t simple and comes with a worth which is shedding many battles. When you snipe each liquidity pool blindly, you may lose many trades till/in the event you can catch the gem.
Though that’s really a technique some undertake to search out the large factor, you’ll be able to optimize that by eradicating some cash out of your sniping listing based mostly on some standards however earlier than that allow’s see the place you’ll find new cash to snipe.
Discover Upcoming Cash to Snipe
There are some free and paid methods you’ll be able to strategy to search out potential cash for sniping.
Within the free model, you’ll want to be extra skilled and know the right way to seek for no less than legit cash, which I clarify within the subsequent part. Then you’ll want to be part of free Telegram teams and refine the knowledge you discover there. This should be your final strategy and ultimately you are taking this route.
Alternatively, some paid teams may allow you to particularly if you’re new to meme coin buying and selling and in addition save your time and vitality — in fact, not all of them are value it.
I’m not an skilled at paid teams as a result of I haven’t joined them and at all times do my due diligence to search out tokens to snipe. That’s why I can’t provide you with any paid teams.
I discover upcoming tokens from the token scanner on Unibot for ETH/Base tokens and New swimming pools on the alert part of Bonkbot for Solana cash.
Within the Unibot token scanner, we would like the “token deployed” messages which implies the contract of the token is simply deployed on the blockchain however it hasn’t been given liquidity but so principally you’ll be able to’t commerce it for now.
Within the New pool channel on the Bonkbot we take note of the messages with the “new pool” header nevertheless not all of them are what we search for. We have to have a look at “Open time” and ensure that it’s sooner or later.
Now that we’ve discovered some upcoming tokens we should always dig deeper to determine first, the cash are usually not rip-off and secondly how doable is that the cash get traction and no less than transfer to some extent in order that we will make a good revenue.
The best way to Keep away from Rip-off Crypto Cash
There’s a lengthy listing of things that you could examine within the contract deal with of a coin to see if there are any crimson flags. Word that there are some variations between while you examine an EVM (Ethereum Digital Machine) suitable chain contract; similar to Ethereum, Base, BSC, Avalanche, with while you examine Solana contract.
For Cash with EVM Appropriate Contract:
- See if the contract is verified.
- Verify if the token is honeypot which means you’ll be able to’t promote cash after shopping for.
- See if possession is renounced. If it isn’t, the proprietor can modify contract and do all kinds of malicious actions together with minting extra tokens or altering transaction charges, and so on.
- Is it mintable which implies the creator can mint extra and enhance the token provide after which dump them on holders.
- Is there a excessive tax on promoting or shopping for the token which implies you’re charged a excessive share on purchase/promote.
- Can token creator blacklist some merchants which means cease their pockets deal with from shopping for/promoting.
- Verify if liquidity (LP) is locked or burnt. If a portion of liquidity is locked or burnt it means the locked liquidity can’t be pulled out of the pool. In different phrases, that quantity is the particular liquidity you need to use to promote your tokens. Clearly, the extra tokens are locked the higher.
You possibly can examine the above standards on coin scanners similar to de.fi or Tokensniffer.
For Solana-Based mostly (SPL) Cash Program/Contract:
- Mint authority ought to be renounced. It means the proprietor can’t mint greater than its authentic token provide
- freeze authority ought to be renounced which implies the proprietor can’t freeze anybody’s tokens.
- Verify the creator’s pockets historical past and age. It shouldn’t be a brand new pockets and have a good variety of transactions. It additionally shouldn’t be concerned in creating different tokens particularly unsuccessful aka rug tokens.
- Verify if liquidity (LP) is locked or burnt.
You possibly can examine Rugcheck or Solsniffer for checking Solana contracts.
In addition to checking contracts, it’s best to take a look at their socials particularly Twitter (X) and/or Telegram to see what different folks say concerning the cash you wish to snip and if there may be any hype round it. Search the cash and see if anybody posts a warning about them on Twitter.
When you resolve to snipe, you want sniping bots and one of the best sort of bots for meme coin sniping is telegram bots. I personally use Defi Solana Bot for Solana and Unibot and Banana Gun for Ethereum and Base.
Copy Buying and selling
Our fourth and final technique is copying worthwhile wallets.
Though copy buying and selling isn’t technically named a buying and selling technique, we will benefit from this technique to develop our account.
Since many meme coin buying and selling, or most likely most of them, occur on DEXs (Decentral Alternate) you’ll be able to see every little thing on chain. You possibly can observe peoples’ wallets and see what they commerce, whether or not they’re worthwhile merchants, how a lot they make, their PnL, and lots of different data and stats.
Since blockchains information is immutable and might’t be tampered with, you’ll be able to depend on the info you discover. In fact, discovering the info alone doesn’t do something for us right here. we have to analyze and refine them to get entry to one thing helpful — one thing that brings us revenue.
So step one is to search out worthwhile merchants or addresses.
There are some instruments that may assist us to search out worthwhile merchants however one of the best one is GMGN.
After discovering worthwhile wallets/merchants you’ll be able to copy their trades.
For copy buying and selling like sniping, you want a bot. Once more I feel the Telegram bot is the best choice and it’s the type of bot I exploit. From the bots I’ve used for copy buying and selling Unibot for ETH/BASE and Trojan for Solana are my favorites.