Analyzing and Demo Trading of OPUSDT 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 OPUSDT.

It is a pleasant day for us again to analyse the crypto market and this time we are taking into consideration the pair of OPUSDT and we are applying the resistance and support strategy so let's see how the market goes as we analyse it.

Firstly, I went to the chart of the said asset as you can see from the screenshot below. The market was in a range for a while after it was rejected by the support level. We can see that a little upward and downward movement continued in the market and the indicator also has left the oversold region meaning the market may move upward.

From the above chart, the market looks good for longing than shorting and for that reason, I decided to look for a good opportunity to immediately long the market after the little retracement that was seen in the market. You can see that in the above chart.

Immediately the next candle showed up and is more bullish I decided to introduce my buy logo as you can see from the screenshot below. The buy logo in the chart indicates how far I'm ready to profit if the analysis goes my way and how far I'm ready to loss if the analysis goes against me.

So based on that, you can see that the risk management for the trade is indeed a good one because we can see that almost a profit of 200% is expected on this trade if the analysis goes my direction and a loss of 10% if the analysis goes against me.

So from the above screenshot the risk reward ratio of the trade is around 2:20 which is a very good trade if you ask me. We all trade to make profit hence the ratio of profit should be higher than the loss you are willing to make in any trade.

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 142.66 USD, and if the market goes against me for any reason I will lose 20.61 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 3.438, the take profit level is at 4.864, the stop loss is at 3.232 and lastly the P&L at the moment is -0.90, 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 -2.50 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.

Just as predicted, after many hours of holding the trade, you can see that we are in a profit of about $31, I will keep holding to see how far the market will go.

Conclusion

Analyzing the crypto market most times requires patience because the market may not immediately go your direction but if you know what you are doing and you are confident on your analysis then you can go ahead and stay in the market until the market goes in your direction.

The analysis I have done above is currently against me but I will see till the end of the movement. If it changes direction and I enter profit I will share the result with here on this post.

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