This post is going to be highly unusual. I've never done such a post and to be honest, I've never seen anyone on Hive do it either. This is a unique occasion, I don't want to make it permanent as it can influence people with insufficient knowledge and not in a good way, but I thought I'd show you two of my trades I took recently and show you how it's done, or how I do it. Let's say I'm sharing my journal with you, as basically this is like journaling. (My journal is a bit more technical and detailed though.)
The pair I've been trading is called MYX/USDT. Don't ask me what coin this is as I have no clue, literally. I don't know what's the project behind it, or if it is any project behind it at all. I don't know, I don't care. My trading partner says MYX is a scam token with scam moves, high volatility. I don't really care as this is not long term holding, it's trading, which means in and out, with strict risk management and I trade everything that brings me money. Less experienced traders are afraid of high volatility, but at the end of the day, that's what we're looking for. No volatility, no trade.
So let's get started, shall we?
This was my first trade, a short based on the m5 (5 minute) chart. Usually the routine means establishing daily bias, use h4 time frame for framing and execute on m1 - m5 time frame, depending on which one can give me a good setup. Here however, I focused exclusively on the m5 time frame.
The pink box is the Asia session, which is essential to me as I need Asia high and Asia low set, to be able to trade. These are guidelines I'm using after the Asia session ends. As you can see, Asia low was set right before the end of the session, after which price took off and swept Asia high right at the beginning of the London session. Then there was a V-shape reversal. There should have been my entry, but I was away from my desk. Later during the London session I saw another opportunity to enter a short trade.
I'm a liquidity based trader, I am hunting internal and external liquidity. There was a fair value gap (FGV) on the buy side, at the 2.7592 level, marked with yellow on my chart (FVGi m5), which was inverted by price by closing below it. That was my trigger to enter as I saw that level as lost support, turned into resistance. As you can see, price came back twice to that area (my entry), retested it, but could not close above it, to turn it into support.
Setting up your take profit (TP) levels is key in this game and can make or break your trade. Some traders just set up TPs at every 20%, or 25%, I like to select my levels based on liquidity and lately taking into consideration support and resistance (S/R).
As you can see, there was an S/R level, that I marked on my chart. During Asia, it served as resistance as it rejected price four times at lease, then price was able to turn it into support. At the time of taking the trade, I had to knowledge, that price could bounce at that level and made the decision to make it TP1 and close 90% of my position, which meant 2R and let the rest of the 10% run as a moonbag, in case price could broke below that level and continue.
TP2 was another important level and I closed 50% of the remaining position, leaving 5% to run, also moving my stop loss (SL) to profit.
As you can see on the chart, price bounced and stopped me out in profit.
This was my trade yesterday.
What is interesting to note here is that S/R level, which helped me a lot. In an ideal world, I'd have expected price to sweep Monday low, before making a reversal, but as the ideal world does not exists, you need to be realistic and apply risk management accordingly.
After stopping me out, price managed to turn that resistance level into support, bounced there and continued to the upside.
The second trade was a long, that I entered before London. Price touched the S/R level, bounced off nicely and gave me the inversion I needed. It's risky to enter a trade before a trading session starts, but if you have an edge and can manage your risk, why not? After all, this is a probability game.
As you can see, after the London session started, price came back below my entry, but did not sweep the current low and bounced. This time I set 4 TPs and price hit them all.
My trading partner calls this token a scam (he knows more about it than me), which is fine.
But the truth is, the whole market is red today, high caps are all red on the daily, yet $MYX is up 14%, so why not take advantage of it, right?
I only used 10x leverage as risk has limits and I'm not gambling.
Profit banked yesterday, today too, so now I can focus on other things, or look for another trade. NY open is in 10 minutes.
As I mentioned at the beginning of my post, this post is unique, I'm not going to do this again. I hope there will be at least one person to read it.
If you're a newbie, you may want to check out these guides:
- Communities Explained - Newbie Guide
- Cross Posting And Reposting Explained, Using PeakD
- Hive Is Not For Me
- How To Pump Your Reputation Fast - Newbie Guide
- Tips And Tricks & Useful Hive Tools For Newbies
- More Useful Tools On Hive - Newbie Guide
- Community List And Why It Is Important To Post In The Right Community
- Witnesses And Proposals Explained - Newbie Guide
- To Stake, Or Not To Stake - Newbie Guide
- Tags And Tagging - Newbie Guide
- Newbie Expectations And Reality
- About Dust Vote And Hive Reward Pool, by libertycrypto27
LOL, I read it and thought hmm rocket science, I have a headache, you have fantastic skills
Thanks 😂 It's not rocket science, but it's not easy either. You need to study a lot and be ready to lose.
Happy all the hard work you have invested into learning these skills is paying off and great to see you have so much enthusiasm spotting these opportunities.
Oh this is sooo similar to betting trade, the same kind of analysis and there some people use Asian odds aswell to decide how and what to trade!