Let’s look at specific examples of cryptocurrency trading.
Example #1. YUFIUSDT futures.
Figure 232 shows the weekly chart of this futures. The coin is in a falling trend, but we see that in July there was a huge slowing volume, giving hope for growth.
Fig.232. YUFIUSDT futures.
To develop a strategy, we will designate a number of levels on the daily chart (Fig.233).
Fig.233. Choosing a strategy.
We expect further growth up to the price of the resistance level of 8057. It is better to use the 5555 level to buy, but it is 17.4% away from the current price. It’s a long way.
We buy at the current price of 6124 0.001 YUFIUSDT (at $ 6,124). We will set the stop at the price of 60. We put another purchase order at the price of 5060 in case of a sharp downward movement of the price. If our stop works during price fluctuations, then we put a new order a little higher at the price of 6300 to exclude a repeat touch. If the price works at 6300, then we put the stop a little lower, say at 6200, and as we grow, we move after the price. The idea of this strategy is either to catch the strait at the price of 5060, or to grab a sharp upward movement, because you need to overcome several levels at once from where the price drop was. Buying at the price of 5060 is highly desirable, there you can put a larger amount, say 0.01 YUFIUSDT, i.e. $ 60. When the price reaches 5060, a rebound is likely, which will give a quick profit.
Example #2. SANDUSDT Futures.
Fig.234. SANDUSDT futures, daily chart.
The price met resistance at 1.35, after 7 continuous purchase volumes. We expect a downward movement, the price has run out of steam, to the price of 1, where it is advisable to buy futures for about 30% of the capital. In case of a spill, we also put a purchase order at the price of 0.73. There is strong support in the 0.73 price zone. Here you can buy futures for another 30% of the capital. From the price level of 1.35, you can also place a sell order if we expect a rebound from this level.
Example #3. CELRUSDT Futures.
Fig.235. CELRUSDT futures, daily chart.
A channel was formed from the price of 0.01081 to the price of 0.02127. It is advisable to buy from the support level. Here we put an application for 60% of the cost. At the current price, you can also buy at 30% of the cost, because the probability of continued growth is high. We put a stop on the minimum price of the current candle. In general, the coin is at the very price bottom and in long-term trading it is possible to buy at current prices.