Analyzing and Demo Trading of SOLUSDT using the retracement Strategy

Hi guys,
It's another day of the week and I'm so delighted to share with you all my entries in today's analysis of the crypto market. I remain @simonnwigwe from Nigeria 🇳🇬 your crypto analyst. It is always good to check through the market once in a while.

Today we are using the retracement strategy to analyze the pair of SOLUSDT and I believe we have all become families with this strategy. If you have any questions about this strategy please use the comment section of this post because I have already explained it in detail in my previous post.

Now without further ado let's go straight into analyzing the market to see what the market offers us today. From the screenshot below, you can see a retracement in the price of SOL and after that retracement, we see the market about to make an impulsive move.

From the above screenshot, I have introduced a mini-support level in which I used the blue line to indicate. As you can see the price retraced to the line before moving up again. That also was used as a stop loss level in case the analysis goes wrong.

So based on the information on the chart, I was confident that the market would move upward, and for that reason, I decided to introduce the buy logo as you can see from the screenshot below.

From the image, our take profit is seen at the next resistance level which is the highest high of the token recently, and the stop loss is seen below the support level which I indicated with the blue line.

From that, you will notice proper risk management systems taken into consideration. This means that the risk-reward ratio of the market is around 2:10 which is a good one if you ask me. Because the profit expected on the trade is around 10X whereas the risk is about 2X.

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 23.77 USD, and if the market goes against me for any reason I will lose 3.00 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 1, the average fill price is 102.38, the take profit level is at 126.16, the stop loss is at 99.38 and lastly the P&L at the moment is +0.05, 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 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 0.12 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

From the above analysis, you will agree with me that all that needed to be taken into consideration to maximize profit and minimize loss has been taken into consideration. Seeing that the market looked bullish, I looked for a perfect entry, and also I set my stop-loss in case the market went against me to ensure I lost only 3$ and my profit if the market went my direction was 23$.

This is all you need to always take into consideration as a trader. A good entry, your stop loss, and your take profit level. Also, ensure to secure the little profit you make always to enable you to win in the market.

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