Analyzing and Demo Trading of STEEMUSDT using the Support & Resistance Strategy

Hi friends,
I remain your favorite crypto analyst in the person of @simonnwigwe from Nigeria 🇳🇬 and it is a great pleasure on my part to share with you all the analysis I did today on a new pair of crypto assets called the STEEMUSDT.

The market has not been very stable for the past few days now as a matter of fact, we have seen how the market dropped drastically from its highest high to support level that we never expected to reach again.

What could be the reason for such drop in the assets. Well, let's see what is going on with our dear Steem token in the market as well. I choose the Steem token to analyse during this period because that is one of the assets that concerns us the most.

So going through the chart of the Steem token, I noticed that there has been a raise in the price of the asset recently, after the dump below the support level, the level was rejected by the asset which prompted the movement of the said asset.

From the screenshot above, you can see clearly bullish movement of the asset where about 3 or more bullish candle are formed which means that for the past 12 hours the market has been in an uptrend movement. This made me to pick an interest in the movement of the asset and to analyse and see how far it will go.

From the chart you will notice a high volume movement and that shows that our upward movement is much momentum this is the reason I have decided to long the market at that point without waiting for a reversal. I intend to take the opportunity immediately and make some profis.

For that reason I have also decided to introduce the buy logo as seen in the screenshot below. They buy logo as you can see shows the rate of profit I was willing to make and the amount of loss I was willing to take if the market goes against me.

The market from the screenshot shows a risk management system of about 2:20 which means that the risk reward ratio of the trade I wish to take is around 2:20 which is a good risk to reward ratio if you ask me. So let's move a step ahead and see how the entire trade plays out.

To properly keep track of the progress of the said pair of assets, I decided to introduce a demo trade to at least keep me on track and in check so that I will have a little emotion when the market goes in my favor or against me. See the screenshot below.

From the above screenshot, you will notice that the demo trade has been activated already. If the market goes as predicted, then I will be able to earn a total of 10.07 USD, and if the market goes against me for any reason I will lose 1.79 USD. This shows that it's a good risk-reward ratio if you ask me.

Finally, I also decided to go to the position side to get complete information on the market so that you all can see it more clearly. The details below talk about the points where I take my profit, my stop loss, and even the current price of the asset when I'm making the post.

From the screenshot above, you will notice that the side is long (buy), the quantity is 100, the average fill price is 0.2999, the take profit level is at 0.4006, the stop loss is at 0.2820 and lastly the P&L at the moment is -0.07, that is all about the open order.

After a while, I decided to check back on the trade to see if the market was going in my favor or against me. Going through the chart I saw that the market did not respected my analysis and that is what gave us the result you can see from the screenshot below.

From the above screenshot, you will notice that the loss made is already at -0.51 USD which means our analysis is not in my favour at the moment. I will still hold on to the market and see the final movement of the asset because I'm confident that it will go my direction. So let's be patient as market will still go as predicted.

Conclusion

One thing I have learnt in trading is patience. The result you see from the market at the moment maybe scaring and you will feel you did a wrong analysis but patience will help you hold the trade till the end. Sometimes the market does not go as predicted immediately so you need patience to hold on.

Just like previous, I will update the outcome of the result soon so that we will know if we are in profit or in a loss. So let's keep Steeming on my dear friends. See all next time in my next publication. Thanks and remain bless.

Remember also that trading is like meditation, patience is the key. Always wait for the market to come to you and not for you to go to the market. Learn to identify your key support and resistance level and also trade with the trend and in that way, you will be a successful trader.

Finally, I want to thank you all for reading through my post today. If you have any questions or contributions, please do well to use the comment section of this post. See you all in my next publication.

Disclaimer: ^{This post is made as an education and not investment advice. Digital asset prices are subject to change. All forms of crypto investment have a high risk. I am not a financial advisor, before jumping to any conclusions in this matter please do your research and consult a financial advisor.}

NB: All images except otherwise stated are mine and taken from tradingview.com website