WAVES/USDT Short Future Trade - Trading Competition - Crypto Academy / S6T4 - Homework post for pelon53.
Hello everybody.
Welcome to this post. I hope that all of you will be fine and good and enjoying your best health with the grace and blessings of Almighty God. Today, I am here to present the Trading Post for the Investors-Team in the last week of the Season 6 of Steemit Crypto Academy Trading Competition. It is a golden opportunity for all of us to utilize the knowledge that we have gained from the academy so far. So, let's start the task without any waste of time.
This is my 2nd trade this week and I have selected the WAVES/USDT pair for this trade. Let's discuss the reasons behind the selection of the pair and trade in detail.
Coin Pair and Exchange Name
Today, I am going to execute a Short Future trade in the WAVES/USDT pair. This pair is one of the most popular crypto pairs of the time that is traded by many skillful traders. I will execute a Short trade in the market of WAVES/USDT pair after doing a proper technical analysis. I will try my best to execute a profitable trade in the market.
I have selected this pair due to some reasons. Actually, the WAVES coin is one of the strongest coins of the time in the cryptocurrency world. The market capitalization and the uses of this token are so impressive that it attracts a lot of traders towards itself. The WAVES coin is also present in the top 35 crypto coins of the time and we wish to see it in the top 10 coins soon. The strength of this token is great due to its wide use cases in the Waves blockchain platform. Moreover, I have also executed many trades in this pair and the overall result is impressively positive so far.
I have selected the Binance exchange because I personally like it very much. It is quite simple to use and also it is a very safe and secure exchange for trading cryptocurrencies. I have also used a number of other exchanges like Poloniex, Huobi Global, etc. But I liked the features of the Binance exchange very much and I am familiar with most of the features of the Binance exchange.
Binance Exchange is the most popular centralized exchange of the time. Its popularity is due to its number of unique and useful features. It allows the users to trade almost all of the good crypto pairs. The P2P trading and the Margin trading of this exchange are also impressive. It allows the users to set the leverage of the futures trades up to 125X which is really impressive. There are also many other unique features of this exchange that made this exchange listed on top in my book of trading.
Fundamental Analysis of WAVES
- Introduction and History:
The WAVES coin is actually the native currency of the Waves platform which is an open-source platform that allows the users to develop and enjoy the Decentralized Application (DApps) and many other impressive features. The WAVES token is actually used for the execution of the transactions in the Waves platform. The WAVES token can also be earned as the block rewards in the WAVES platform.
The Waves platform is actually an open-source blockchain platform that is performing a number of useful functions in blockchain technology. It allows its users to create new digital tokens on the Waves platform. Users can also access different Decentralized Apps (DApps) and smart contracts on the Waves platform. Users can create their own tokens and also manage the supply of the tokens according to their will. A new feature is recently added to this platform that the tokens that are created on the Waves platform are in collaboration with the ERC-20 tokens.
The Waves platform is secured by the Proof-of-Stake mechanism. Users can stake the WAVES tokens and act as a node for the validation of the transactions that are taking place in the blockchain. Another amazing advantage of this platform is that the transaction fees can be paid in the form of any other token, besides the WAVES token, present in the Waves platform. This is really a very impressive feature of the WAVES platform.
The Waves platform was developed in June 2016 by one of the most popular personalities in the crypto space, I mean Sir. Alexander Ivanov, also known as Sasha Ivanov. He was also involved in a number of other successful projects like Coinomat Exchange, Cooleindex, a stable coin CoinoUSD, etc. Thanks to him fr creating such an amazing platform where the users can explore different DApps and also create their own crypto tokens.
The use cases of the WAVES token in the Waves platform are many. The WAVES token can be used as a transaction fee for the validation of transactions in the Waves platform. It is also utilized for the issuance of new tokens on the platform. Recently, the Waves DEX (Decentralized Exchange) has also been developed where the users can exchange and trade a number of other crypto tokens with the WAVES pair as well. Moreover, the nodes' validators also stake WAVES tokens for the validation of transactions. So, these use cases of the WAVES token make it a very strong coin of the time.
- CoinMarketCap:
On exploring the CoinMarketCap of the WAVES coin, I have got a number of useful information about the WAVES Token. So, have a look at the following screenshot in this regard.
The information that is obtained from the above screenshot can also be expressed in the form of tabular data that is given below.
| Coin Name | Waves |
|---|---|
| Nick Name | WAVES |
| Rank | 31 |
| Current Price | $51.87 |
| Market Cap | $5,595,342,114 |
| Fully Diluted Market Cap | $5,681,768,189 |
| Market Volume | $3,268,703,503 |
| Volume / Market Cap | 0.5924 |
| Circulating Supply | 107,870,380.00 WAVES |
| Total Supply | 107,870,380 |
- Historical Price Data:
From the above screenshot, we can observe that the All-time High price of WAVES is $59.13 (30, March 2022, Today) and the All-Time Low price of WAVES is $0.1227 (02, August 2016).
- Available Markets:
As I have discussed that the WAVES coin is one of the most popular coins at this time. So, it is available on almost all popular and successful exchanges and swap platforms. Some of them are listed below.
Analysis of the WAVES/USDT pair
The Technical Analysis of the price charts of the cryptocurrencies plays a very important role in improving the profit percentage of the trades that are executed in the market. Technical Analysis is actually based on the historical price movements. According to technical analysis, the price action repeats itself again and again in the market. So, the traders can make very profitable trading decisions.
There are numerous technical analysis tools that are used to make good trading decisions in the market. In this post, I am going to execute three different technical indicators that are discussed below.
- Parabolic SAR:
Parabolic SAR is a trend-following indicator that is used to determine the trend reversals happening in the market. It actually consists of a dotted line that either moves above or below the peice action line. If the dots are above the price action, it is a Bearish signal and when the dots are below the price action line, it is a Bullish signal.
- Moving Average:
Moving Average or simply known as MA is also a trend-based indicator that can be used to determine the overall trends of the market. It actually consists of a line that gives the signals of trend reversals. When the MA line is below the price action, it is a Bullish signal, and when the MA line is above the price action, is a Bearish signal.
- Relative Strength Index (RSI):
The relative Strength Index is a volatility-based indicator that can also be used as a very good oscillator. It is used to determine the Overbought and Oversold regions in the market. It ranges from 0 to 100. The overbought region is a bearish reversal and it is actually above the 70 range. The Oversold region is a bullish reversal and is actually below the 30 range.
So, have a look at the below image in which my trade setup is shown according to the use of these three indicators collectively.
In the above screenshot, we can observe my trade setup in the market. For this, firstly, I opened the 5 minutes chart of the WAVES/USDT pair and drew the Support and Resistance levels according to the timeframe. After that, I applied all the indicators that I was going to use for this analysis. Keeping in view the following points, I opened a Sell/Short trade in the market:
| Indicator Name | Observations |
|---|---|
| Parabolic SAR | The dots of the SAR indicator were moving above the price action line which is a signal of a Bearish trend. |
| Moving Average (MA) | The MA line was also moving above the price action line which is also a Bearish trend signal. |
| RSI | The RSI line was moving below the mid-line and seemed to be entering the Oversold region. So, it is also a Bearish signal. |
- Execution of Trade:
Keeping in view all the above points, I decided to take advantage of the downward movement of the market so I executed a Short/Sell Future trade in the market. I opened the Binance exchange and executed a Short Future trade with a leverage of 20X. For proper risk management, I set the Stop Loss and Take Profit points at the ratio of 1:1. The proof of the Short trade that I have executed in the market can be shown in the below screenshot.
After waiting for some minutes, I saw that the market was moving in the direction that is predicted by me. So, I decided to close my position at a reasonable profit of $0.54 which is enough for me according to my executed Margin ratio. The proof of the profit is shown in the below image.
My Plans and Recommendations
In the above section, I have explained the execution of the Short trade in the WAVES/USDT pair. First, I did a proper technical analysis of the market according to my knowledge. The signal given by my analysis was downward so I decided to take advantage of the downward movement in the market. So, I executed a Short trade.
This is a sharp signal obtained by the technical analysis at a lower timeframe. So, I did not keep my position open in the market for a long time and closed my position for scalping when the price moved a bit in my predicted direction. Moreover, the market situation was not supporting the long-term trade so I did a short-term, or scalp trade.
- Recommendations for Others:
As the question of the recommendations for others falls, I will recommend everyone to open a Short trade at the time of making this post. I will invite all the traders to open a Short trade for a while and close their position when they will secure a reasonable profit, being a scalp trader.
According to my opinion, this condition of the WAVES coin is not good for a long-term investment as the WAVES token had already made its All-Time High recently (About 10 hours ago). So, I will never recommend anyone to take risks and execute a long-term trade. Moreover<, it is advisable to enter the market with proper technical analysis and risk management.
Additional Information About WAVES
We can also find the social media accounts of WAVES. We can get the latest and most important information and news from these social media accounts.
- Twitter:
- Medium:
- Telegram: https://t.me/wavesnews
We can follow and visit all these social media accounts on daily basis to get updated on any new updates about the Waves platform or WAVES token.
- Whitepaper: https://docs.wavesprotocol.org/en/
Conclusions
In this post, I have made a Short Future Trade by doing a technical analysis of the WAVES/USDT chart. I used three different technical analysis tools that are Relative Strength Index (RSI), Moving Averages (MA), and Parabolic SAR. By analyzing the market, I opened a Short Future Trade and set the Take Profit and Stop Loss points at the ratio of 1:1. After some time, I secured a profit of $0.54 so I closed my position.
Thanks to dear professors @pelon53 for such an amazing opportunity by leading an amazing team.
Note: All the screenshots are taken from CoinMarketCap, TradingView and Binance.
Writer: @steemdoctor1 (Crypto Student)
Link to the Respost:
https://steemit.com/hive-108451/@steemdoctor1/repost-waves-usdt-short-future-trade-trading-competition-crypto-academy-s6t4-homework-post-for-pelon53