If you’ve traded meme coins for a while but your results aren’t satisfying you might have done it the wrong way. In this article, I explain my top 4 personal strategies that I’ve used firsthand for trading meme coins. The strategies are based on my experience in meme coin trading and are a combination of Technical Analysis (TA) and on-chain trading.
My top 4 Strategies that I use for meme coin trading are:
- Buying when resistance becomes support (TA)
- Buying on untouched Support (TA)
- Sniping newly created meme coins (on chain)
- Copy trading (on chain)
let’s dive into each strategy and see what they are and how they can help us find the best meme coins to buy.
You'll See in This Article:
Buy When Resistance Becomes Support
Our first strategy is to buy a meme coin when a resistance on its chart becomes a support.
If you are new to Technical Analysis(TA) and don’t know about Support & Resistance watch this short video:
In TA terms, support and resistance levels can exchange their roles meaning when a resistance is broken, it can turn into a support and hold the price back, the same goes for a support.
This is the gist of our first meme coin trading strategy.
We want to buy a newly created coin when its price breaks higher highs or resistances and then reverses to touch them — the levels are now supports.
The above pic is a newly created coin in its first upward move. The price breaks the high, the resistance, and then reverses to it. The support area is where we pull the trigger and buy.
One important point here is the way we draw our S&R zone. We use the highest point or candle’s shadow for the upper band of the level and the body of candles for the lower band, without crossing any candles’ bodies.
There are several methods for your take profit and stop loss levels but we use the ATR indicator here.
The reason is…
… since we use a zone for our supports and resistances, the price distance from our zone to some degree, which is 1 ATR(14) here, means that our level is broken and is not strong enough to hold the price back.
You can find the ATR indicator from the indicator section of your charting platform (for example Tradingview)— it’s free.
ATR, in simple terms, is the average range of candles (14 candles here) — of course, it’s a bit different and gaps are considered in its calculation but that’s pretty much the definition.
All in all, we assume that if the price passes our line as large as an average candle, our trade has failed and we should jump out of it. In other words, our SL is hit.
But what about our TP or target?
Our TP is twice our SL (2 ATR).
Another version to set your TP is by dividing it into two parts. You can close half of your position at 1 ATR and let the rest of your profit grow until you see a reversal signal. It’s a more professional method so if you’re a beginner to meme coin trading you should stick to the first approach.
Buy on the First Largest Correction (Untouched Support)
Our second strategy is to buy a meme coin on its first support.
On the 5 or 15 minute charts of almost all legit meme coins, we’ll talk about legit meme coins later in this article, you see an upward move with at least two impulsive moves or waves and a correction in between — the impulsive moves can be more than two if there is a strong hype around a meme coin.
Then comes a large correction which creates a notable low or support. It can confluence with a previous resistance as well, which makes the level even stronger.
This is our first untouched large support. When you see such setups, it’s almost guaranteed that the price will react to and pull back from when it reaches the zone again.
So we wait for the price to meet the level again and it’s where we want to buy the coin.
Our TPs and SLs are the same as the previous method; using ATR.
Sniping Newly Created Meme Coins
Our third strategy is to buy a meme coin as soon as it’s created.
Sniping in trading crypto coins is a terminology referring to buying coins as soon as they are created and given liquidity.
When someone creates a meme coin, for it to be tradable, a pool needs to be created with a pair of coins, the meme coin, and a quote coin — for example; Bonk/Sol Wif/Sol Myro/Sol, etc.
The creator of pools or others can then add liquidity to it so that the coin can be traded.
Here’s where snipers who are actually degen traders step in and buy coins in the hope of catching the next big coin, or meme coin in our case, and ride it to Valhalla— too much crypto jargon I assume, sorry.
In short, I mean 100x their investment.
Of course, finding Valhalla coins is not easy and comes with a price which is losing many battles. If you snipe every liquidity pool blindly, you might lose many trades until/if you can catch the gem.
Although that is actually a strategy some adopt to find the big thing, you can optimize that by removing some coins from your sniping list based on some criteria but before that let’s see where you can find new coins to snipe.
Find Upcoming Coins to Snipe
There are some free and paid ways you can approach to find potential coins for sniping.
In the free version, you need to be more professional and know how to search for at least legit coins, which I explain in the next section. Then you need to join free Telegram groups and refine the information you find there. This must be your ultimate approach and sooner or later you take this route.
On the other hand, some paid groups might help you especially if you are new to meme coin trading and also save your time and energy — of course, not all of them are worth it.
I’m not an expert at paid groups because I haven’t joined them and always do my due diligence to find tokens to snipe. That’s why I can’t give you any paid groups.
I find upcoming tokens from the token scanner on Unibot for ETH/Base tokens and New pools on the alert section of Bonkbot for Solana coins.
In the Unibot token scanner, we want the “token deployed” messages which means the contract of the token is just deployed on the blockchain but it hasn’t been given liquidity yet so basically you can’t trade it for now.
In the New pool channel on the Bonkbot we pay attention to the messages with the “new pool” header however not all of them are what we look for. We need to look at “Open time” and make sure that it is in the future.
Now that we’ve found some upcoming tokens we should dig deeper to figure out first, the coins are not scam and secondly how possible is that the coins get traction and at least move to some extent so that we can make a decent profit.
How to Avoid Scam Crypto Coins
There is a long list of items that you can check in the contract address of a coin to see if there are any red flags. Note that there are some differences between when you check an EVM (Ethereum Virtual Machine) compatible chain contract; such as Ethereum, Base, BSC, Avalanche, with when you check Solana contract.
For Coins with EVM Compatible Contract:
- See if the contract is verified.
- Check if the token is honeypot meaning you can’t sell coins after buying.
- See if ownership is renounced. If it isn’t, the owner can modify contract and do all types of malicious activities including minting more tokens or changing transaction fees, etc.
- Is it mintable which means the creator can mint more and increase the token supply and then dump them on holders.
- Is there a high tax on selling or buying the token which means you’re charged a high percentage on buy/sell.
- Can token creator blacklist some traders meaning stop their wallet address from buying/selling.
- Check 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 other words, that amount is the definite liquidity you can use to sell your tokens. Obviously, the more tokens are locked the better.
You can check the above criteria on coin scanners such as de.fi or Tokensniffer.
For Solana-Based (SPL) Coins Program/Contract:
- Mint authority should be renounced. It means the owner can’t mint more than its original token supply
- freeze authority should be renounced which means the owner can’t freeze anyone’s tokens.
- Check the creator’s wallet history and age. It shouldn’t be a new wallet and have a decent number of transactions. It also shouldn’t be involved in creating other tokens especially unsuccessful aka rug tokens.
- Check if liquidity (LP) is locked or burnt.
You can check Rugcheck or Solsniffer for checking Solana contracts.
Besides checking contracts, you should check out their socials especially Twitter (X) and/or Telegram to see what other people say about the coins you want to snip and if there is any hype around it. Search the coins and see if anyone posts a warning about them on Twitter.
If you decide to snipe, you need sniping bots and the best type 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 Trading
Our fourth and last strategy is copying profitable wallets.
Although copy trading is not technically named a trading strategy, we can take advantage of this method to grow our account.
Since many meme coin trading, or probably most of them, happen on DEXs (Decentral Exchange) you can see everything on chain. You can track peoples’ wallets and see what they trade, whether they’re profitable traders, how much they make, their PnL, and many other info and stats.
Since blockchains data is immutable and can’t be tampered with, you can rely on the data you find. Of course, finding the data alone doesn’t do anything for us here. we need to analyze and refine them to get access to something valuable — something that brings us profit.
So the first step is to find profitable traders or addresses.
There are some tools that can help us to find profitable traders but the best one is Dexwhales. It is a website that we made because I couldn’t find such a tool when I decided to find profitable traders.
Basically, you can find profitable traders for different meme coins. I’ve explained the whole process in a YouTube video:
After finding profitable wallets/traders you can copy their trades.
For copy trading like sniping, you need a bot. Again I think the Telegram bot is the best option and it’s the kind of bot I use. From the bots I’ve used for copy trading Unibot for ETH/BASE and Trojan for Solana are my favorites.