Copy Trading Master’s Winning Strategies Review — Episode 108

Easy Copy, Smart Trade! Discover the winning strategies of our popular traders.

1.Copy Trading Master’s Introduction

User Nickname: LBA3D77447

Trader’s Profile: https://www.lbank.com/copy-trading/lead-trader/LBA3D77447

Trading Style: Short- to Mid-term Trading

2.Trade Operation Recap

25x leverage short on $Fartcoin, entry price 0.9053 USDT, closing price 0.7673 USDT, single trade ROI +381.09%. As shown below:

3.Trade Review

3.1 Market Background

Between August 14 and 25, Bitcoin quickly pulled back after surging to break its all-time high, showing an overall downward consolidation pattern. After rebounding to around $117,000, the price met resistance and retreated again, with market sentiment turning weak.

From April to August, Fartcoin traded in a wide range between $0.7–$1.7, repeatedly finding support near $0.8 before rebounding. However, starting in August, this support gradually weakened, buying momentum declined significantly, and within just two weeks the $0.8 level was tested three times, with each rebound showing less strength — indicating a rising risk of breaking below the range.

On August 25, at the 4-hour level, the price was once again rejected near the Vegas channel and the descending trendline, leading to a short entry. From the perspective of the broader market environment, this downward move carries a high probability of breaking below the range, with the next step likely seeking new support levels. Trading context as shown in the chart:

Subsequently, Fartcoin weakened along with the broader market. After breaking below its consolidation range, the price entered a downward channel, showing a choppy downtrend, with only brief support found near $0.68. Meanwhile, BTC stabilized around the $107,500 level and successfully broke through the descending trendline resistance, with its market dominance also showing signs of recovery. Based on this overall assessment, BTC carried the potential risk of further upward movement, so the short position was closed.

3.2 Trade Analysis

How to Determine Whether a Range Will Break: From Consolidation to Trend

In financial markets, prices do not always move in a single direction. More often, they oscillate within well-defined ranges. Ranges provide clear buy and sell zones, but the challenge traders face is: Will the range continue, or is a breakout imminent? Being able to judge whether a range will hold or break is key to capturing trend opportunities and avoiding false breakouts.

1. Core Logic of Range Trading vs. Breakout

• Range continuation: Bull and bear forces remain temporarily balanced, causing prices to swing between support and resistance.
• Range breakout: One side accumulates enough strength to push price beyond the range, starting a new trend phase.

The essence of a breakout is a shift in supply and demand dynamics. To judge whether a range will break, traders need to spot signs of imbalance.

2.Main Methods to Judge a Possible Breakout

1. Volume changes

• Method: Watch if trading volume expands significantly near range boundaries.
• Logic: Genuine breakouts are often accompanied by rising volume. If volume keeps building near support/resistance, one side is overpowering the other.

2.Multiple boundary tests

• Method: Count how many times price tests the support or resistance of the range.
• Logic: The more times a level is tested without strong reversal, the weaker the defense becomes, raising breakout probability.

3.Candlestick patterns & momentum

• Method: Observe if large bullish/bearish candles, long wicks piercing levels, or multiple closes cluster near boundaries.
• Logic: Strong candles sticking to range edges signal imbalance. A final push often results in breakout.

4.Technical indicator divergence or confluence

• Method: Combine RSI, MACD, Bollinger Bands, etc., to check for divergences or reinforcing trend signals.
• Logic: When multiple indicators align at range boundaries, breakout likelihood increases.

5.Macro & news catalysts

• Method: Consider economic data, policy news, or on-chain flows.
• Logic: External events often serve as catalysts that break range equilibrium. In crypto, high-volatility news can trigger sharp breakouts.

3.Distinguishing Real vs. False Breakouts

1. Real Breakout Signs

• Significant volume expansion
• Candle closes firmly outside the boundary
• Quick continuation after retest confirmation

2. False Breakout Signs

• Weak or insufficient volume
• Only a wick or brief penetration
• Price quickly returns inside the range and reverses

4.Practical Application: How to Trade with Range Breakouts

1. Pre-breakout positioning

• Watch repeated tests of a level and prepare breakout strategies in advance.

2. Breakout follow-through

• Wait for breakout with volume and retest confirmation before entering, to avoid chasing.

3. Stop-loss & target setting

• Place stop-loss inside key range levels; targets can reference the range height projected outward.

5.Risk Control & Key Notes

• Multi-timeframe validation: Breakouts on higher timeframes tend to sustain longer.
• Stay alert for false breakouts: Especially in news-driven markets.
• Dynamic tracking: Ranges are not permanent — continuously reassess as conditions evolve.

Judging range breakouts is not about relying on a single signal, but rather a comprehensive assessment of multiple factors — volume, price action, number of tests, indicators, and market information. At the critical turning points between consolidation and trend, those who can identify imbalances in advance will gain the upper hand in the market.

Note: Personal opinion, for reference only. Opportunities and risks abound, always do your research before investing.