Analyzing and Demo Trading of MATICUSDT using the Support & Resistance Strategy

Hi, fellow crypto lovers,
I remain your favorite crypto analyst in the person of @simonnwigwe from Nigeria 🇳🇬 and it is a great pleasure on my part to share with you all the analysis I did today on a new pair of crypto assets called the MATICUSDT.

Looking at the chart below, you will notice that the levels of support have been broken by the price of the asset which is a clear indication that the price is bullish or it is going in an upward direction. When this happens, all we need to look out for Is a good entry position to buy the market.

From the above chart, I have decided to confirm and be sure that it's a good signal for one to long the market so what I did was to check the volume of the market and also check the movement properly. The volume didn't say much about the price but because the candles have been bullish I decided to take the market.

So a good entry to the market is what I waited for. I allowed the last bullish candle to close on the 1H timeframe and it closed bullish, I was supposed to have allowed the 4H candle to do the same but I didn't because I wanted to take the opportunity to make my little profit in the market since I was certain that the market was going my direction or the market was bullish.

From the screenshot above, you will notice that I have introduced my buy logo in the chart this was to enable me to know where to trade the market i.e. my take profit level as well as my stop loss level.

So from the screenshot above you will notice the take profit level is at the next resistance level whereas the stop loss level is below the support level. Based on the risk-reward ratio we can say that the the trade is in the ratio of 2:10 which means if the market goes in my favor I will make a 10% gain and if it goes against me I will make a loss of about 2%.

It is a good trade if you ask me because the crypto market is made up of uncertainty so you need to be sure that you put into check a little risk that you can afford. So let's go deeper to execute the trade and see how it goes.

To properly keep track of the progress of the said pair of assets, I decided to introduce a demo trade to at least keep me on track and in check so that I will have a little emotion when the market goes in my favor or against me. See the screenshot below.

From the above screenshot, you will notice that the demo trade has been activated already. If the market goes as predicted, then I will be able to earn a total of 33.86 USD, and if the market goes against me for any reason I will lose 3.50 USD. This shows that it's a good risk-reward ratio if you ask me.

Finally, I also decided to go to the position side to get complete information on the market so that you all can see it more clearly. The details below talk about the points where I take my profit, my stop loss, and even the current price of the asset when I'm making the post.

From the screenshot above, you will notice that the side is long (buy), the quantity is 100, the average fill price is 0.9443, the take profit level is at 1.2829, the stop loss is at 0.9093 and lastly the P&L at the moment is -0.11, that is all about the open order.

After a while, I decided to check back on the trade to see if the market was going in my favor or against me. Going through the chart I saw that the market didn't respect my analysis and that is what gave us the result you can see from the screenshot below.

From the above screenshot, you will notice that the loss made is already at -0.51 USD which means our analysis is not in my favor at the moment. I will still hold on to the market and see the final movement of the asset because I'm confident that it will go in my direction. So let's be patient as the market will still go as predicted.

Conclusion

On so many occasions, the market doesn't go as predicted immediately, most times the market tends to go against us before going in our direction and when this happens, hold on to your trade if you are confident of your analysis and then wait for the market.

I'm confident in this analysis and that is why I'm holding on to it I will be sharing the screenshot of the result much later to show how the trade went either in my favor or against me. So let's keep our eyes on the market and in the comment section of this post.

Remember also that trading is like meditation, patience is the key. Always wait for the market to come to you and not for you to go to the market. Learn to identify your key support and resistance level and also trade with the trend and in that way, you will be a successful trader.

Finally, I want to thank you all for reading through my post today. If you have any questions or contributions, please do well to use the comment section of this post. See you all in my next publication.

Disclaimer: ^{This post is made as an education and not investment advice. Digital asset prices are subject to change. All forms of crypto investment have a high risk. I am not a financial advisor, before jumping to any conclusions in this matter please do your research and consult a financial advisor.}

NB: All images except otherwise stated are mine and taken from tradingview.com website