Analyzing and Demo Trading of WAVESUSDT using the retracement Strategy

Hello guys,
I remain your favourite 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 WAVESUSDT.

I want to believe that we are all familiar with the retracement strategy I have been using in my trade analysis recently. Retracement works hand in hand with impulsive movement. So when a market retrace, we expect an impulsive movement.

Today in this pair of assets, if you look carefully you will notice that the asset broke above the support level and then retraced back below it before it made another impulsive move which broke above the line again.

From the screenshot above, I waited patiently for the break of the support line. Immediately I saw the break, I waited for the first 4H candle to close bullish to confirm the movement. The first candle closed with a doji candle which is a sign of indecision.

I waited for another to show up and the current green candle had much momentum which means that the asset was ready to push upward. With that and the indicator which shows that the market left an oversold region, I decided to introduce the buy logo signal to enable me to determine where I will be taking my profit and stopping my loss.

From the screenshot above, you will notice that the take profit level is slated above the next resistance level and the stop loss is seen below the support level. From the risk management strategies, we can say that the trade has a risk-reward ratio of 2:10.

This is a good setup that any trader will ever think of because the market looks bullish and we are hoping that it will move up to the predicted level. So let's monitor this market by moving a step further from where we are at the moment.

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 6.35 USD, and if the market goes against me for any reason I will lose 1.04 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 2.488, the take profit level is at 3.123, the stop loss is at 2.384 and lastly the P&L at the moment is +0.06, 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 +0.09 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 analysis above shows that the market has the potential to move bullish i.e. the upper direction because of the break of the support level and the indicator leaving the oversold region. We also saw that after the retracement move, the trade performed an impulsive movement.

We are already in profit, so let's wait and see how the market plays out at the end of everything. So I will update the screenshot of the output as the market keeps going in my direction. So let's watch and see how the market goes.

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