Today i will try to explain how to play with Kava in a simple way.
- Remember always that in Cryptos are not easy as forex or stocks, because movements are always brutal.
- The first step is always to detect the real trendline. - Detect 3 points. Bouncing Points, Rejection Points. - Some traders use only 2 points, but i am old style trader, so i really need 3 Points to Draw the trend. - Remove the abnormality ( FOMO and PANIC ) - Draw your line.
- Now you will need to find PRICE ACTION AREAS. - Those areas can be easily detected by the price fluctuating for a long period of time in the same zone. - For KAVA right now we are fluctuating between $0.75-$1.25$ ( Price action zone 2) - Now you can draw your price action lines.
--------------------------------------------------------------------------------------------------------------------------------------------------------------- METHOD 1 --------------------------------------------------------------------------------------------------------------------------------------------------------------- - So to enter a position you need to understand that you never know if you are right, or if you are wrong. anyone have a magic ball. - The best way is to NEVER GO ALL IN. - Keep always more juice to rebuy if the market crash.
- For exemple, you could try to enter KAVA Market at 0.75$ (invest 25%), in case of DIP to 0.5$ (re-inject 75%) ( this is very important!!) --------------------------------------------------------------------------------------------------------------------------------------------------------------- METHOD 2 --------------------------------------------------------------------------------------------------------------------------------------------------------------- - Simple wait to see if KAVA will break out the Trendline - in that case you will need to wait the price to break out from triangle (Yellow Triangle) - Again never go all in, on a breakout, some breakout could be fakes. - Keep always Juice. ---------------------------------------------------------------------------------------------------------------------------------------------------------------
- More you will understand and detect price movements, supports, resistances, breakouts, more you will trade better. - Price action and trendline are the basic of trading. - indicators are complementary.
PS : This method can also be applied by Shorting the market. ( just inverse everything ).
- Happy Tr4Ding !
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Price action is also working on Forex, here an exemple with GBPUSD. the main difference is only the speed.. Cryptos are very fast...
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Now take a look at Filecoin and you will get fast the idea of Price Action. it's the same.
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Shiba for the meme :
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Now Tesla for the Stocks :
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so what you need to understand is :
- The best method to trade is to not trade at all ! - The best method is to be patient, very patient !
- Enter your position when everyone is crying. - Exit your position when everyone is happy.
That IS the mantra to life by. :)
This:
- Enter your position when everyone is crying.
- Exit your position when everyone is happy.
--> golden tip