3.9 C
Manchester
January 27, 2021
Image default
Guide & Analysis

Trader’s Saga AGAINST THE TREND

Trader against Bitcoin trend – A sad Fable

On the daily Bitcoin chart, after the big drop with the Coronavirus news on 3/12, BTC rebounds and breaks the averages reversing the trend on April 29, 2020.

Then, from the end of April / 20, see the daily chart, the Bitcoin Trend is High!

But, there are always those who like to operate against the flow and work on supports and resistances; in this case, against the upward trend: selling on resistance.
And how does it work?

Trader’s logic against the trend

The point is to always sell on resistance and sell until the asset price makes a stronger correction …
That is the problem. Sometimes this correction does not come.

See how the João Trader, specialist in operating on supports and resistances, does this against the trend:

It broke up, 8k, I’m going to open a short at the next resistance in 11800 and get a nice trade…

Passed on…

It doesn’t matter, the RSI is high, now I take 2x what I sold in 11800 and I’m going to open a short in 14000

Passed on…

It’s very stretched! Bitcoin will make a strong correction at any time, seeing again at 17k

Passed on…

I’m sold, now it’s a historic top, 20k, here it’s right without error…

Passed on…
And João no longer has the money to sell more …

$ 23k is impossible not to go down, when correcting it will be strong!

Passed on…
At that time, Futures traders who operate leveraged already were liquidated. Those who leverage more strongly were liquidated earlier.

Now at 28k there’s no way, I made my fibo and it will correct there!

Passed on…

It’s already $ 33k and now there is a stubbornness mixed with the pride of trying to hit the top.

Rules for Long-Term Bitcoin Transactions

→ NEVER operate against the Trend

Against the trend it is indicated only for scalper and day trader with short exits. From swinger upwards, always go for the trend. The crypto market is very volatile and an invert is always painful. * ¹

→ ALWAYS, ALWAYS use the STOP.

Esa is one that shouldn’t even be talked about anymore; this is ‘law’ among traders around the world. It is always better to lose a little than everything; stop is your seat belt.

* ¹ Against the trend in a new asset like Bitcoin, it is as if you are trying to climb Mount Everest in the middle of an avalanche; it’s insane. See strategies to operate in favor of the trend

Related posts

XRP may return to the Top 3 by the end of May!

Shahrukh Ahmed

– XRP is trying to recover after the bloody weekend?

Shahrukh Ahmed

Price forecast: Bitcoin, Ripple (XRP) and Monero (XLM)

Shahrukh Ahmed

Leave a Comment