(REPOST) LUNA Perpetual Futures Sell | S6W1 | Team Trading Contest Post for Crypto-Empires

Hello Professor @abdu.navi03, Here is the result of my fifth trade of the week.

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1. Name and introduction of the project token.

LUNA is the token of the project known as TERRA, which is a protocol that uses stablecoins linked to fiat currencies.

Specifically, the LUNA token is used to stabilize the price of the protocol's stablecoins. LUNA holders can also vote on protocol proposals; in other words, it is a governance token.

The interesting thing about LUNA is that it maintains a one-to-one linkage through an algorithm that adjusts the price to the demand.

It is currently priced between 70 and 60 USD and has a market cap of 27 billion dollars. According to the coinmarket cap list, it ranks number 9 of all active coins.

The project was funded in 2018 by Daniel Shin and Do Kwon and launched between 2018 and 2019.

It can be exchanged on Binance, Huobi, Bitfinex, and Upbit. In addition to the Luna Perpetual Futures version found on FTX, which will be the asset I will trade in this post.

2. Why are you optimistic about this Token today, and how long do you think it can rise?

In the case of LUNA, the sky is definitely the limit. We are in the presence of one of the fastest-growing projects in the last year.

I think what makes it attractive is that LUNA offers solutions to the problem of volatility in cryptocurrencies. This makes it a viable and excellent option in terms of transactions.

It also offers the service of creating synthetic assets, which not only covers fiat currencies but also other assets such as gold, oil, gas, etc... with which they can be exchanged on the Market.

Regarding how much it may cost, I am sure it will break the 100 USD barrier in a very short time, maybe 2 to 3 months while the cryptocurrency market stabilizes.

3. Technical Analysis

For this last trade (for this week) I will trade LUNA perpetual futures on FTX, based on my knowledge of Elliott Waves and price action.

I start by analyzing the market in a 15 minutes time frame and I find a bullish momentum that presents 4 well-formed waves and the last 5 wave forming.

By Elliott's knowledge, I know that after a bullish impulse comes to a strong bearish correction ... so in theory, I will look for a short entry.

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When I zoom in on a 5-minute time frame, you can see that wave 5 is forming a wedge pattern, which is like the holy grail for traders like me. Since usually the next wave after a wedge is almost certain to react in the desired direction.

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However, the risk with the end of the impulses is that you never know exactly when they will end, so for reference, I use the Fibonacci Extension to measure the maximum limit to which wave 5 can reach.

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This will later serve me to establish a safe stop-loss since by Elliott wave law the internal wave 5 can never be greater than the internal wave 3.

With respect to the entry, I know from experience that wave 5 does not always reach the upper trend line, so I make a SELL ENTRY at market price.

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I go to my FTX account and make the sale at market price with a 0.2 LUNA lottage

4. Your plan to hold it for a long time or when to sell?

My plan is scalping or intraday.

I set the stop loss at 70.2 USD above the expected maximum level for wave 5. And take profit at 62.4 USD. My exact entry point finally was 66.846 USD.

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However, to be honest, I set TP at 62.4 because being a wave 5 diagonal, the pullback is expected to be very deep, however, I know from experience that such a trade can take a long time.

So for price action, I will keep an eye on how the candlesticks react when they approach the wave 2 levels of the wedge; because by definition that is the right place to take profits in wedges scenarios.

Time and price confirmed my suspicion, the price did not reach the expected TP but reacted by bouncing to the level of wave 2, so I quickly had to close the trade manually to take profit. The TP ended up being 63.885.

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After that, the price went up again, maybe later it will fall but I won't know. For this reason, we often have to be flexible and make last-minute changes to our strategy in order to make a profit. It was not the desired profit, but it was a profit in the end.

5. Do you recommend everyone to buy and the reasons for recommending/not recommending

In general, I recommend LUNA to everyone because although I recognize that the price is a little high compared to other altcoins, it is also true that the project looks very solid and is aimed at solving a real problem such as volatility.

While the price may be a limitation for some people, there is always the option to do DCA and buy token shares.

An additional incentive to purchase LUNA is that the company gives benefits to those LUNA owners who exchange it with other stablecoins at profitable exchange rates, to satisfy demand... sort of like a liquidity pool in a decentralized exchange.

6. Anything else you want to share about the token/project.

Something additional we should know about LUNA and Terra is that its site allows us to perform different savings and currency stake operations with the promise of receiving dividends out.

All the options of the DeFi sector are present, as well as the development of smart contracts.

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They also present the option of creating DApps that can be linked and work with different Blockchain, which means that the project offers interoperability solutions.

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