I am trying to put what I've learned so far into practice. I still have a long way to go and for now, the main goal is to identify points where there will be a spike in price short or mid-term. The 1s§t trade I took on Chainlink is still ongoing. 16 days into it, the price is trading around 12% higher compared to where I got in and there is still some time left before I complete that trade.
Trade #2: BTC Results
My 2nd trade on Bitcoin (See Post) was made 3 days ago and was much more short-term. This was the main idea...
Quickly after, the price broke down to the downside and I got out around the point where I aimed to get out with an eye to buy back more BTC later on. I didn't have a clear target set where to buy back or what to do when the pattern did break out to the downside mostly because I still have way too little understanding of that.
After I sold, the price quickly dropped -2.75% and found support on what is one of the 2 long term downtrend lines (depending on you draw them). The break down out of the pattern also came right at the time when the news came out some of the old Bitcoin that has been mined without being touched got moved. The price went up again to just below where I sold and I ended up buying back what I sold with a tiny profit. This turned out to be a small mistake though as the price fell more the days after up to -8% compared to where I initially sold (and bought back). The price bounced back up around a mid-long-term support line and found new resistance at the downtrend line.
Right now Bitcoin seems to be in a short term do or die moment where it could go a lot lower if it breaks the mid-long-term support line or goes above the 800+ day downtrend line again. If it breaks down, I will likely get out again even though I haven't made a clear plan just yet.
Overall the main goal of predicting a sharp move up or down showed to be correct even though I didn't really manage to capitalize on it. I do plan on making more of these documented trades as they are an excellent way to learn and get better at the game of Technical Analysis .
|Documented Trade #1 Chainlink||Still Running|
|Documented Trade #2 Bitcoin||Complete|
Free Software I use for Charts
Platform I use for Trading
Posted Using LeoFinance