XLM / USD downward trading. Pivot points.

XLM / USD downward trading. Pivot points.

XLM downstream trading. Recently, a lot of PR on this coin. The trend is still downtrend. Trading in a downward channel from the trend lines , which I depicted on the chart. The pivot points from which this or that movement will be embodied are also depicted on the chart. In addition to the trend support and resistance of the channel, do not forget to trade in the so-called “internal channel”, this is a very profitable job. I didn’t see this in books, but believe me, it’s very profitable, I have been trading ETH / USD for more than a year. About 70% of purchases / sales were in my “internal channel”.

It is worth noting that the trend will reverse upward only when the price breaks and consolidates above the downtrend line (red line, the upper trend of the downtrend).
Also, for those who do not understand, I will explain XLM and XRP the two brothers of the acrobat “at the bottom” are now on mega XXX, given the global trend.

The pair for btc at the moment looks much better.

XLM Falling Wedge . An interesting ratio of impulses. + 32%, + 42%, + 52%, + 62%? Trading idea for July.

What are trading channels? How to trade them? Profitable job?

Trend lines are drawn on the chart between support and resistance . The top trend line connects price highs. The bottom trend line connects price lows. The area located between the two trend lines will be your trading channel. The greater the price step in it, the greater the potential profit. The price remains within this specific space until the channel breaks in any direction. A trading channel gives traders a visual view of the trading range of an asset for a certain period of time.

Once a price channel has been determined, identifying areas for trading becomes very simple. Trading in pricing channels is very similar to trading in a range with identifying areas of support and resistance to enter the trade.

Typically, traders in a channel will sell an asset when the price approaches a maximum, which is the level of resistance. Conversely, a trader will buy an asset when the value comes close to a minimum. This is a support line. Many traders who trade in the channel believe that the trading channel is a very reliable technical analysis tool in order to determine the behavior of the trend. Trendlines are actually a combination of traders’ beliefs about the value of an asset. Trading channels show the boundaries of this changing mood.

It is important to understand that channel trading is ultimately a strategy of support and resistance levels. This means that traders will wait for the opportunity to enter the market, and will not trade when prices are between these two levels.

There is no existing rule or a predetermined number of times that the price must reach the channel lines before the trader must decide to buy or sell. However, most traders look for at least two high points and two lower points to check for a separate formation. Regardless of the trend, it is important that the trend and channel lines are drawn parallel to each other. Drawing these lines at the wrong angle will give false conclusions. Traders typically predict where prices will go by calculating the distance between the lines.

There should be a strategy and plan. At the same time, your strategy and plan should be plastic from market situations.

Published at Thu, 07 Nov 2019 20:29:33 +0000

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