Analyzing and Demo Trading of OPUSDT using the retracement Strategy

Hi everyone,
It's another day of the week and I remain my humble self @simonnwigwe from Nigeria 🇳🇬 your crypto analyst. It's a pleasure to be here again together today to analyze a pair of crypto with you all. So just like every other day, let's see how it goes.

Today we will be looking at the pair of OPUSDT using the retracement strategy to analyze it. Every crypto movement doesn't go in a straight line instead it moves in a zig-zag manner. This zig-zag manner is called impulsive and retracement movement.

Impulsive means that the market is going in a particular direction be it up or down and retracement means it changed a little direction to gain balance or momentum that will allow it to move back in the initial direction. So today we have seen the movement of OPUSDT in an upward direction as seen from the below screenshot.

From the above screenshot, you will notice that the market has been moving in an upward direction which means the market is in an uptrend. If you look carefully, you will notice that the market is moving in a zig-zag manner.

There was a retracement which changed the direction to a downtrend but not for long. The market started again to move upward and that is when I saw the opportunity to enter the market by introducing the buy logo as you can see from the screenshot below.

From the above screenshot, the buy logo shows the profit I want to make in the trade and the loss I'm willing to also take. The risk-reward ratio of this market as you can see from the buy logo is around 1:9 which is a good trade for me if you ask me.

My take profit was located above the resistance level drawn in the chart and my stop loss was right below the last bearish candle. This is to minimize my loss and maximize my profit. So to further ascertain the movement of the market I went further to the next step below.

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 favour 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 9.08 USD, and if the market goes against me for any reason I will lose 1.54 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 10, the average fill price is 3.616, the take profit level is at 4.533, the stop loss is at 3.460 and lastly the P&L at the moment is +0.04, 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 favour or against me. Going through the chart I saw that the market 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 profit made is already at 0.10 USD which is a sign of progress. I will still hold on to the market and see the final movement of the asset because I'm confident that it will hit my take profit.

Conclusion

The retracement strategy is a strategy used by traders to enter the market if they miss the first or previous entry position. If a market starts moving upward and you are not there to enter, it's not advisable to jump into the market when the market has already moved so all you will do is wait and enter when the opportunity presents itself again.

So when there is a retracement, you look for a good entry and then enter the trade and catch the little you can before the market direction completely changes. I hope this tutorial will help us use this strategy effectively.

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