A real live Trade (XRP / Downtrend Channel) explained
I thought it might be helpful to drive some of you through a real trade from me.
This was the situation two hours ago - I was watching Ripple (XRP) closely and identified a downtrend. After i traded the first downchannel (the first pair of blue lines) I identified a second downchannel. (The second pair of blue lines).
I was in a little late, but felt confident after the first two green buyups. If you wonder why your candles are a little more mixed up, i use Heikin Ashi Candles, which i personally find more clear.
So i set my Short / Sell Position at 0,0001900 XRP. That was random, i normally try to avoid even Numbers, but it didn't matter this time.
The Pink line is where my short position was. If the price dropped under the pink line, i made profit, if it went over it, i lose money.
Same Chart and lines,just another scaling - the price moved in my anticipated direction. Maximum Depth was 18%. I was tempted to sell at 15% because that is my normal take away, but on the other hand the trend seemed strong. (Afterwards is should have, but "should haves" have never bought a beer, so i don't care ;) )
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The price then entered a strong buy zone. The Orderbook filled up with buys and the price came up with force. So i set my yellow Minimal Profit Line, based on Dip and Top of the last wave. It was located at 5.6% profit. The 13%-Profitbox was my best outcome, i would have sold if it had hitted that.
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Some minutes later the RSI 14 (lower chart under the price) showed a very strong uptrend, and the orderbook was bullish, so i waited until the price hit my yellow minimal profit line, and sold with little over 5% profit.
That is absolutely fine for me - 5% in ~1.5h is a result i can perfectly live with. It always depends on how much you trade with.
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If this post was insightful for you or you have questions regarding trading crypto, feel free to ask.
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Do you think Ripple will break $5?
I think there is great potential, because of the support of the banks which are generally sceptic to cryptocurrencies, but ripple is the best they can get their fingers on. it offers some kind of control and safety, which banks need for their business models. so i think there will be a lot more support for ripple, which will widen ripples marketcap, which in turn will drive the price. i don't think we will see 5 USD in the next few weeks, but i wouldn't wonder if ripple breaks 5 USD until the end of 2018.
Despite trading trends Ripple is a long term hold for me.