Analyzing and Demo Trading DYDXUSDT using the Range Method strategy

Hello guys,
It's your favourite Steemian and a Crypto analyst @simonnwigwe from Nigeria 🇳🇬. It is a pleasure on path once again to be here with you all today. Daily I look for opportunities in the market to analyze and share with us some trading tips.

In today's analysis, after looking through my whitelist, I saw a pair which is ranging from the lower timeframe but has much potential for more growth. What this means is that the market at the moment has been ranging from the look of things it will move in an uptrend soon.

I took a lot of time and also took into consideration a lot of things before concluding the analysis here today. From the chart below, you will notice that the market is ranging but we can see a bullish candle already making more waves.

From the chart, you can see that the indicator has reached its oversold region which means that the possibility of the market moving in an upward direction is high. Seeing that, I concluded that the said market will leave the ranging phase anytime soon to an uptrend direction.

Most times, we will need to take the market as it presents itself to maximize the opportunity that comes with it. Here in this market, we have a clear example of that scenario.

I also decided to introduce the buy logo as you can see from the screenshot above. From the chart, you will notice that my take profit was taken up to the next resistance level and the stop loss was placed just below the longest bearish candle.

From that chart and analysis, the risk management is seen to be around 2:10 which means that if the market goes in our favour then we will make a good profit. Risk is also attached from what we can see.

I also decided to demo trade the account as well. So from the screenshot below, I entered a buy order and from the chart, if the market goes in my predicted direction, I will be able to earn 13.08 USD and if the market goes against me for any reason I will be losing -2.09 USD.

In my opinion, the said trade is a very good one because the risk is 7x less than the reward we are to earn. Risks are always associated with trade so we must always be ready to have some risk always as a trader.

Finally, I also took a screenshot of the position that I opened for the trade as it contains all the information you need to know about the trade I took. The screenshot below shows the open position.

From the screenshot above, you will notice that the side is long (buy), the quantity is 10, the average fill price is 3.048, the take profit level is at 4.356, the stop loss is at 2.839 and lastly the P&L at the moment is +0.02, that is all about the open order.

After about a few minutes of the analysis, I decided to check and see the progress of the market. From the screenshot below you see that the market is already making great improvement.

The chart above shows that the market, has moved in our predicted direction and we have already made a profit of about +0.10 USD. So I will keep updating us about the results of the market as we continue.

Conclusion

Most times, you may not need to wait for the market to break through support and resistance lines before taking the market. In most cases, you will need to minimize your losses and maximize your earnings as well. I saw the opportunity of taking the market as it was in the chart so I took it immediately.

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