Quick lesson how making small gains on a bounce off the Purple Moving Average (99)
I match trading views Moving averages with Binance since that's the main exchange I prefer to use. *Movings Averages: Yellow(7), Blue(25), Purple(99)
Why I took positon:
I studied how the price reacts to the moving averages on Binance and have been for over a year. They use them as supports and resistances depending on the situation.
As the price off BCHABC broke down through the Blue MA(25), I knew it was likely that there would be a bounce off the Purple MA(99). If there is a bounce, get in and out quick as the bounce doesn't always last long.
Once I seen that last bear candle touch the Purple MA(99), I candle watched to see who's winning. The Bulls worked hard to drive the price back up and that's why you see the bottom wick formed. Once the next candle showed reversal signs, I hopped in because I figure the Bulls will keep trying to drive the price up as you can see from the bottom wick on the green candle. (See graph where my note is)
Limit-Buy Order
I set 2 entries in the area but only one was filled which is fine. I didn't have much time and wanted to get the orders filled. To ensure my order got filled, I set a limit-buy order above the asking price to take the lead. Buyers/bots always trying to undercut you buy placing orders a satoshi higher.
*Never FOMO into a trade and never market buy into one either or you'll lose out on some gains with potential risk of the price dropping.
*There's always another trade if you miss out.
Sell Targets:
In this situation, bounce off the Purple MA, I don't shoot for the massive gains. the higher you place your sell target, the more likely, it won't hit. I simply layer my sell targets over 3-4 splits with half a percent in between. This ensures your positons get sold on the way up earning you up to 2% of your positon.
It's up to you on how you want to work it. create your own strategy. Good luck and lets hope my last target gets filled
I match trading views Moving averages with Binance since that's the main exchange I prefer to use. *Movings Averages: Yellow(7), Blue(25), Purple(99)
Why I took positon:
I studied how the price reacts to the moving averages on Binance and have been for over a year. They use them as supports and resistances depending on the situation.
As the price off BCHABC broke down through the Blue MA(25), I knew it was likely that there would be a bounce off the Purple MA(99). If there is a bounce, get in and out quick as the bounce doesn't always last long.
Once I seen that last bear candle touch the Purple MA(99), I candle watched to see who's winning. The Bulls worked hard to drive the price back up and that's why you see the bottom wick formed. Once the next candle showed reversal signs, I hopped in because I figure the Bulls will keep trying to drive the price up as you can see from the bottom wick on the green candle. (See graph where my note is)
Limit-Buy Order
I set 2 entries in the area but only one was filled which is fine. I didn't have much time and wanted to get the orders filled. To ensure my order got filled, I set a limit-buy order above the asking price to take the lead. Buyers/bots always trying to undercut you buy placing orders a satoshi higher.
*Never FOMO into a trade and never market buy into one either or you'll lose out on some gains with potential risk of the price dropping.
*There's always another trade if you miss out.
Sell Targets:
In this situation, bounce off the Purple MA, I don't shoot for the massive gains. the higher you place your sell target, the more likely, it won't hit. I simply layer my sell targets over 3-4 splits with half a percent in between. This ensures your positons get sold on the way up earning you up to 2% of your positon.
It's up to you on how you want to work it. create your own strategy. Good luck and lets hope my last target gets filled
Trade closed: target reached:
3rd target reached for a 1.60% profit on my last 25% position. Thank you for reading. Happy trading.