Analyzing DYDXUSDT and Demo Trading it

Hello, great minds,
It's another day of the week and another privilege to learn something new and even put into practice what we have learned. Trading has become part of me and I want to believe that is one of the most legit ways to make a living for that reason, I will continue to always to practice and improve my strategy to obtain more suitable results.

As I have told us in my other articles or publications, I always ensure I interact with the market daily because that alone helps me to know the little progress I make while improving my strategy. Indeed, we may not be right at all times but we strive to be at least 80% correct always.

Practice they say causes improvement and that is the reason, I have decided to always spend the little time I have practicing and also trade the crypto market. In today's article, I will be sharing with you all the strategies that I used to analyze and enter a trade.

If you have been following my publications, then my strategy won't be new to you. I always make use of the support and resistance strategy to analyze my assets. Strategy can be built or developed by anyone and hence this one is mine because it has proven to be effective in so many cases.

Now let's consider the chart of the said pair of assets and then see what the market is saying at the time of the analysis. From the chart below, I took into account the pair of DYDXUSDT on a 4H timeframe as you can see below.

After the first 2H, the market broke the support level clearly, and since the market has a clear bullish candle below the support level I didn't wait for the 4H candle to close again because there may be too many gains going before I join the market. So I decided to use the 2H candle closure for my entry.

Immediately after the 2H candle closed, I introduced my sell logo as seen in the screenshot below. I also entered the market because the market has been on a downtrend for a while which led to the breaking of the support level.

Checking through the 2H candle I noticed that the stochastic RSI indicator was around its overbought region and that implies that the market is still going to drop and capture all the opportunities available I decided to use that entry.

From the chart, you will notice that the risk-reward ratio of the trade is around 2:10 because the risk I decided to take was just above the last bullish candle and the profit was the next support level. This will be a huge profit if the market moves in my predicted direction.

Since I was confident of the analysis and I knew I would be making some gains, I decided to introduce my demo trade to the market. From the chart below, I have entered a demo trade which tells us the entry point, the take profit, and the stop loss level.

I entered the market when the price was at 3.134 and my stop loss was a little above it which is at 3.164 my take profit on the other hand is at 2.243, and that is the other of the market at the moment. A screenshot of the order as opened on the TradingView website using paper trading is also seen below for your clarification.

So I will keep holding and monitoring the trade and then see how the market plays out. This always helps me to improve my daily analysis of the crypto market. So we will stop here for today guys.

Conclusion

Practice always causes improvement. My last word for you today is don't stay a day without practicing your strategy. Use the free tool on TradingView to grow your strategy and become more confident in your analysis.

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 blog 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