A LESS COMPLEX DAY TRADING STRATEGY

Greetings,

It's your friend @mondraye and today I would be sharing another important content on cryptocurrency trading.

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We all are aware that cryptocurrencies has grown to become one of the most trading assets in the financial market. This is due to its volatile nature which most traders see as an opportunity to make profits by cautiously trading both sides of the market.

In as much as this provides earning opportunities, there is no doubt that it is quite risky which makes explains why it is very important for traders to learn and maintain some of trading strategies which will help in increasing their chances of success during trading.

Different strategies are used in taking different types of trades which is why swing traders and day traders employ different trading strategies.

On this content, I will be showing us a quick and easy strategy suitable for day traders in scalping profits from the volatile cryptocurrency market.

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MY ANALYSIS

• 1hr timeframe

Here I will be trading TRX|USDT pair and I will start by making out the recent major support and resistance areas on the 1hr timeframe.

I marked this areas on a 1 hr timeframe because they are more prominent on higher timeframes and the 1hr timeframe is the closest to the 15mins timeframe and thus perfect for a day trader in marking out support and resistance areas.

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• 15mins timeframe

After marking the support and resistance areas on the 1hr timeframe, I will switch to a 15mins timeframe in other to find a possible entry position.

I also noticed a minor support area on the 15mins timeframe which I marked using a thin black line.

On the 15mins timeframe, I saw that the price is already at the resistance area. In as much as the price was at a resistance area, It wasn't enough to convince me into taking a sell position until I found confluence to support it.

The conflunces I found includes

✅ Price at Resistance
✅Double top
✅Divergence.

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• My entry

The divergence which I spotted using the RSI indicator showed that although the two tops are evenly at a resistance, the RSI was showing that the current price is more overbought than the previous price at the same resistance.

Seeing all the above bullish-to-bearish price reversal confirmations, I took a sell position using my Binance futures account.

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• Exit

After taking a sell position I moved to apply risk management by setting up my stop-loss and take-profit.

My stop-loss comprises of an amount I will be willing to loss should the trade go wrong due to market uncertainties while my take-profit was set in consideration of the closest prominent support.

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• Result

From the above screenshot, we will see that the trade went exactly as predicted and a profit of $15 was made.

Smmary,

Trading the support and resistance area doesn't necessarily mean that one should buy at a resistance and sell at support.

In other to increase the chances of success in trading the support and resistance areas, a trader should endeavor to find confluences by using other technical analysis tools.

This will increase the trader's confidence and also give the trade a higher probability of being successful.

_{10% to @Tron-Fan-Club}