Another example of my favourite price movement type which I like to call an elastic band effect. XLM overextended quite significantly from around 4300 sats to just under 3800 sats in a matter of hours with no apparent reason, reaching RSI of about 15. I decided to jump in with a small position as soon as I could see pins forming to attempt and catch the elastic band and ride with it on it's way up.
The result is shown on the graph where green lines are my in and out points and blue line shows where I have opened and where I closed the trade. My out point was determined by looking at previous highs where strong resistance could have been observed.
Result is a profitable trade in the bag with approx. 15% profit.