Steemit Crypto Academy | Season 2: week 7 - Home work Post for Professor @yohan2on on: The Swing trading style

in SteemitCryptoAcademy3 years ago (edited)

Using your knowledge of technical analysis demonstrate your understanding of Swing trading.

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First

, we should explain swing trading, which is a kind of cryptocurrency trading in which a cryptocurrency trader keeps a trading position for many days or weeks in order to capitalize on market fluctuations or swings and profit. The word "swing" in the name refers to the various swings of the bitcoin market. Swing trading necessitates scanning the chart for the broader picture, recognizing trends, and selecting entry and exit points.
Before getting into swing trading, I believe it is critical to have a clear trading strategy and rule in place, as this will enable you to make the best trading selections possible, allowing you to earn more money. The cryptocurrency market is very volatile, which implies that market swings are constantly present. Swing traders will benefit from this since they will be able to profit from market fluctuations.

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A Crypto asset pair

I'm going to utilize the BTC/USDT trading pair for a few reasons: it controls over 40% of the cryptocurrency market, which means it has greater volume; it was the first crypto asset to be published, giving it a lengthy history dating back to 2008/2009; and it'll be simpler to perform technical analysis with it. I'll be using https://www.tradingview.com to do my project since it contains all of the resources I'll need to research the market. I'll be utilizing the Binance exchange option of the chart since Binance has a higher volume, which will help me see the chart more clearly.

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What's your Entry and exit strategy?

So saw my chart its on down-turned I can buy to get profit, when it go upturned. In this case, I'll use Systematic Trend Following since I'll be trading based on market trends and will wait for the proper moment to purchase and join the market. They'll then collect my profit and quit the market.
To enter or exit my trade, I'll use the Systematic Trend Following approach. Let me be clear: you have no control over your trading outcomes, but you do have power over your choices and actions while trading. Trading without an objective is a fool's errand. The entry, exit, and targets are all established before the transaction. A good entry point in a trade should be a low-risk location with a high possibility of beneficial movement.

The Systematic Trend Following approach will be my entry and exit strategy, and I will trade depending on trend shifts.

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Multiple time frame analysis

Multiple time frame analysis is crucial when it comes to technical analysis. ManyTime Frame Analysis is when a cryptocurrency trader uses technical analysis to track a certain cryptocurrency pair over multiple time frames in order to assess the market's direction and make the best trading choice.

This is beneficial because it allows a cryptocurrency trader to calculate the price of a cryptocurrency pair at various times in time, giving them a basic understanding of the market's direction or trend. Over example, if the price of a cryptocurrency has been down for the last 30 days, it indicates that the cryptocurrency is in a downtrend. I'll use the 15 minute ,30 minute, 1 hour, 4 hour, and 1 day periods for this presentation.

15-minute time Frame

Every candle in this chart represents the 15-minute time window. As you can see, it's heading in the wrong direction. In this case, I'll wait a while before selling since it's now in a upward trend, and when it stops, it'll be a good moment; I'll also be looking at the indications.

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1 Hour Time Frame:

So as in this, every candle is showing the Hour's Time frame. In this, the trend is in an downward trend. And now is also not a good time to enter the market.

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4 Hour Time Frame:

In this, every candle is showing the 4 hour Time frame and in this frame, the candles are in a downward trend now.

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1 Day Time Frame:

In this, every candle is showing the 1 Day Time frame and in this frame, the candles are in an Uptrend now. I should have invested in that some time ago when the downtrend stops. And it was time for the exit with profit

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A Week Time Frame:

As is this also every candle shows Week time frame. A week time frame chart is used to see the broader point of how the market is going as it is in a downward trend or an upward trend. And in this I think is the best point to enter the market.

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Candlestick analysis and use of other relevant supporting indicators for your trade decision.

Using the weekly candlestick, I was able to go as far as 1 year back and was able to pick the all-time high and all-time low within this period. With all the all time low of $3742.58 on 9th March 2020 and an All-time high of $64951.38 on the 12th of April 2021. With the market taking a downtrend currently after its previous uptrend.

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I examine the trendline on the 1-day chart to see whether it follows the predicted path, which it did. Until there was a reversal/correction, it was an uptrend. After a break through the trendline, the trend shifts. At this stage, I begin to identify significant resistance and support zones. The red parallel lines serve as support zones, while the greens serve as resistance zones. Resistance eventually gives way to support.

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I'll initiate a trade based on the 4 hour chart; depending on the analysis, this trade might last a few hours, days, or weeks. The 1 hour time frame may be a better alternative for short-term or day traders, however swing trading frequently yields significant profits. Before placing a trade in any direction, double-check that the 4 hour chart's trend matches the 1 hour chart's.

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Trade management ( Setting stop loss, trailing stop and take profit)

Analyzing the market isn't a certainty that the market will go in your favour, in most cases, it will go in the opposite direction and that is where a Stop-Loss is needed. I plan to long/buy into BTC if it goes above $35541.0 and I will be taking profit at $40000.0 and a stop-loss of $323000.0.

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conclusion

The market isn't constant, you can only analyse and expect the market to go in accordance to the analysis. Moreover, you need to be sure and not gamble. Trading isn't gambling and always remember to stop losses.
While it is true that no one can predict the future, the Swing trading technique teaches that there are always additional opportunities to detect a market response at levels where it has previously responded.

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Hi @adnanyassin

Thanks for participating in the Steemit Crypto Academy
Feedback

Trading planTechnical analysisScreenshots & Presentation of the contentTrade management
1/31/21/30/2

This is below average. You had no clear trading plan. The minimum timeframe a swing trader will look at is a 1hour chart and not the 15 minutes chart as you have highlighted in your article.

Homework task
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You've got a free upvote from witness fuli.
Peace & Love!

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