Trader Profit Club
A trader starts by analyzing the 4-hour chart and notices a weakening momentum. They move down to the 3-minute chart and wait for a candle close before entering a short trade. After hitting the first take profit, the trader moves the stop loss to break even and eventually exits the trade with a profit of $1.5k.
Making Trades with Matic: A Live Example
Introduction
Trading cryptocurrency can be a rollercoaster of a ride. One minute, prices are soaring to new heights, and the next, they’re crashing through the floor. To be a successful trader, it’s essential to stay on top of the market and make decisions based on sound analysis. In this article, we’ll take a look at a live example of trading Matic on a four-hour chart, breaking down the decisions made at each step and discussing the reasoning behind them.
Starting on the Four Hour Chart
To get a sense of the overall trend, we start by examining the four-hour chart. At first glance, we can see prices are currently under resistance, indicating a potential reversal. We also note that the momentum of the market is getting weaker, which could support this hypothesis.
Zooming in on the Three Minute Chart
While the four-hour chart is helpful for determining the overall trend, it’s not suitable for making precise trades. Therefore, we zoom in on the three-minute chart to get a closer look at recent price movements. Upon closer inspection, we confirm that prices are indeed under a significant level, but we need to see a candle close below the next level to take action.
Entering and Managing the Trade
Eventually, a candle closes below the next level, giving us the green light to enter a short trade. We set up our take-profit levels and enter the trade, keeping a close eye on the market. As prices start to decline and hit our first take-profit level, we adjust our stop loss to break even to protect our profits. Unfortunately, prices reverse and stop us out but still leaving us with a profit of 1.5k.
Conclusion
While trading can be an unpredictable challenge, having a solid plan in place based on careful analysis can help minimize risk and increase the chances of success. By following this live example, you too can learn how to make informed, profitable trades using Matic.
