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TRADING PLAN

An exchanging plan includes various ways by which we can make benefit from exchanging. It is an obvious arrangement for all your exchanging endeavors.
The exchanging plan is a sketch that is made to go about as guide while you are exchanging, this goes far to direct or check the likelihood of experiencing a monetary danger while exchanging. Despite the fact that it isn't obligatory to have an exchanging plan yet it is significant on the off chance that you mean to have a smooth involvement with your exchanging exercises as it saves us from certain dangers that could be kept away from when utilizing an exchanging plan.

MY PREFERED TRADING TYPE

A trend plan like was stated above is very necessary for cryptocurrency trading even though it is not a prerequisite for trading, the importance of a trading plan cannot be over emphasized. The trading plan I find more interesting and convenient is the Trend trading.

The reason why I chose this strategy is because the trading plan is in which the trader intends to hold a coin or cryptocurrency asset for a few months, say six months. The trend trading plan does not require much time for reading and following charts like the day and swing trading plans. This trading plan requires a strong fundamental analysis and also some good technical analytical skills. A trend trader does not bother much about the day to day rise and fall of coin price but he or she may view monthly time interval charts to determine a great exit and entry plan.

XRP/USDT

The XRP/USDT is a trading pair that gives the value of dogecoin in USDT, a steady coin, and this helps to give a quite stable value that can be used to compare other cryptocurrencies. Using a stable coin as a reference is good because it is easier to measure value from a fixed standard and USDT is that standard.

ENTRY AND EXIT STRATEGY

As pointed out above, before trading, it is necessary to have a clearly defined entry and exit strategy, Entry and exit strategies are essentially the mental triggers that you have observed with time and from technical analysis to be effective in making a profit; and a good level of efficiency. So there are triggers that prompt traders to buy and sell and it varies across traders.

ENTRY STRATEGY: I study the chart for a very great downtrend and just at its base is where I await for a bullish run, I do not buy immediately until I spot another sign of an uptrend, that way I get to invest little and expect a greater harvest. This strategy is efficient as we targeted the base of a bearish run , because the whole market tends to correct itself and that gives me a good chance of a long bullish trend later, even though it is not certain.

EXIT STRATEGY: I exit the marked in phases and not completely , that is, whenever I experience the bullish rum anticipated above, I sell some of my position, for instance, I sell off about 30%, when the market breaks my resistance level and I hold the rest in case of an unexpected high.

MULTIPLE TIME FRAME ANALYSIS

The multiple time frame analysis has to do with observing and carefully taking into cognizance the same currency pair at diverse frequencies. Analysis can be done in various time intervals depending on the kind of trading strategy employed. It is of great importance to choose the right time frame, a long term trader who is holding for a long period of time, say a month will not have need for 5 minutes, 10 minutes etc. combination.

THE USE OF INDICATORS IN ANALYSIS

THE RELATIVE STRENGHT INDEX: The Relative Strength Index (RSI) is an indicator that is used by technical analyst to measures the immensity of recent price changes to assess the overbought or oversold condition of stock or other asset prices in the market. The RSI is displayed as a to and fro signals (a line graph which moves between two extremes; either high or low) and it reads from 0 to 100.

MOVING AVERAGE CONVERGENCE AND DIVERGENCE (MACD): It is an impetus oscillator primarily used to sell and buy trends; It’s shown on the chart as two lines which oscillate without limits. The verge of the two lines gives trading signs comparable to a two moving equal system.

This indicator makes use of two exponential moving average (EMA) lines, the signal Line and the MACD line, and the prediction is based on the convergence, divergence, and intersection of these lines

EXPONENTIAL MOVING AVERAGE: this works in the same way as the simple moving average. The difference is that the exponential moving average responds more to recent info.

MOVING AVERAGE (MA): This type of indicator takes the average of the highs and lows of a market divided by the time frame in question. This is a very popular tool in technical analysis because of its simplicity to calculate and its efficiency. It tells the trader what to expect based In the happenings of the past.

TRADE MANAGEMENT

Crypto trading as we all know is volatile, it is not stable and so in order to maximize profits, you must undergo an inevitable step of taking risks.

Trailing stop: A trailing stop is a cutoff that is set below the cost of a specific coin, and it is dynamic and entirely adaptable in light of the fact that in naturally triggers a deal once the value tumbles to that set cost and it secures a bullish run by selling positions and changing the take benefit levels, in view of the arrangement.

A trailing stop is a cutoff that is executed consequently on a trade when the cost of a coin starts to fall. When exchanging, one can draw a stop misfortune line cry which the framework consequently offers the situations to limit misfortunes.

Take profit

This is a upward cutoff above which deal is set off. This technique is completed consequently once that fixed cost is reached

Thanks to professor @yohan2on this is my homework post.