Did you know in crypto trading, the market top lasts for a moment and the bottom lasts for a hundred days? If you have a problem starting trading, this tutorial will give you details about how to enter and exit the trade.
Take the Pepe market trend on January 7th:
In the above chart, it is clear that the market is in the upward direction and highly volatile. In the above chart, we are going to find a trend and a key position.
In the above chart, you can see that one resistance level and two support levels.
Resistance: 0.00002038
Support 1: 0.00002129
Support 2: 0.00002163
In this chart, we have identified an upward signal, suggesting to us that the upward force is strong. These types of signals are always found on the small cycle charts. This rise also suggests to us that the bull is strong. In addition, we have a reason to believe that Pepe will touch the first support point.
Calculate the profit and loss ratio
In the above chart, you can see that we have placed the stop loss at 0.00002040.
Profit and loss ratio: 0.00002129–0.0002056
Loss: 0.00002040–0.00002056 = 16
Profit: 0.0000002056–0.00002129=73
Total: 16:73: 1:1.4
Although you can find that it is not too high, it is greater than 1:1. How much you will make a profit depends on your investment.
Your trading strategy is as follows:
- Target: PEPE;
- Position: 50,0000PEPE;
- Direction — multiple;
- Entry point — 0.00002044;
- Stop loss: 0.00002040;
- Take profit: 0.00002129;
Finally, if the next K-line is more than 50% of the previous line, sell high; if it fails to reach the destination, close your position and do another analysis. If the market gets above the first support level, continue to hold the position or reduce it by just selling a small position.
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