Analyzing and Demo Trading XRPUSDT using the support and resistance strategy

Hello guys,
It's your favourite crypto analyst in the person of @simonnwigwe from Nigeria 🇳🇬. It's another day to learn and I'm delighted to share with you all my knowledge on this analysis today. I hope you all will love it.

Trading any asset requires more patience. Sometimes we need to wait for the price of the asset to move above a certain level which we call support or the resistance level before taking up the trade. In today's publication, the same thing is applicable.

Going through the chart below, you will notice that the market has been ranging and is seen below the support line I drew. I'm confident though that the market will move in an upward direction soon hence I decided to take up the trade.

If the candle closes above the resistance line it will later form a support, the market is expected to go in an upward direction. So I decided to watch closely the market first as you can see from the above image.

Seeing the potential rise in the market, I decided to introduce the buy logo as you can see from the image below. Based on the logo, I have predicted that the market will break that level and also move to the next resistance level which I drew on the chart as you can see below.

From the above chart, you will agree with me that if the market goes as suggested I will be making a very good profit of about 2:10 risk-reward ratio. This means that if the market goes in my direction, I will make a profit of 10% and if it goes against me I will lose 2%.

Since I'm trying to practice the entire thing, I decided to also demo trade the set-up to see how far the market will look. So from the screenshot below, you will notice that if the market goes in my favour, I will earn 1.30 USD and if it goes against me I will lose 0.24 USD.

Clearly from the above image you can see that the market hasn't broken the level yet but hoping it will go as predicted. So let's just sit back and watch how the market plays out from now henceforth and then we can say if our analysis is wrong or right.

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 0.6214, the take profit level is at 0.7510, the stop loss is at 0.5973 and lastly the P&L at the moment is 0.00, that is all about the open order.

Conclusion

The analysis above shows that we are expecting a serious pump in the market and that was the reason for longing for the market. It's not always that the market may go in our favour but you can always use your stop loss to avoid any losses.

Let's watch the trade and see how far it goes today. I will update the result to share with us his the market movement is. Until then, let's keep our fingers crossed. Best of luck guys.

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