First of all i will use this oportunity to thank @stream4u for his kind presentation , infact i am leanring a lot and being enthusiastic to start trading .
i will be explaining in my own way all the basic terms stated by prof @strean4u in his presentation .
PRICE BREAK OUT
This is when you study support and resistance for a particular pair then the chart strike them off to move up or down .
with the aid of a graphic i will expalin how to enter in such trade when to take profit and when to stop loss if it going against your wish.
From the diagram above which i explain very well , you can see that the old support where the price couldnt go down was at 0.000078 and the resistance was at a.000099 but in later hours the price broke the resistance level at 0.000100 with careful studies it is rhe place to enter the trade at the highest peak which is 0.000120 you take profit or at the new support formed , if you are not lucky to see that and you start to loose you place stop lost at the old support.
IDENTIFYING HIGHER HIGH AND LOWER LOW
Per what i understand this help us know uptrend and down trends so let see how i represented them on this image below .
on the same graph i represenred the higher low with yellow and the lower low with blue , i did this because at some spot within the 4hours chart the candles were going uptrend and they tend to go downtrend .
TREND LINE
We use this technique when you set a support and realize the price is not droping close to it but hunging above it , you study the trend and identify two lower lows and draw a line passing through them , and you can use that line as your support anytime the p[rice hit it again
below is how it looks like
REVERSAL PATTERN : When a particular Chat is showing and uptrend and it turns or about to move in the opposite , we have to have some technical knowledge that will let us know quickly that there is goin to be an uptrend or downtrend next
From the above you can see the two highest price at which the trend was finding it difficult to strike through ,this are strong upon strong resistance telling you it is about to go down , so if you are holding an assert sell it ot take profit .
DOUBLE BUTTOM
i picked the above chart from a down trend chart which was struggle at the price were i circle yellow to go further , i realize the was a strong support there hence the probability of price going uptrend is high so a good chance to enter trade .
STOP LOST
This is term use to prevent so many loses when trading , let say you enter trade at point A expecting the price to rise to B and unfortunately it turns against your wish , you have to get a particular point where you stop the trade and accept your lost faith , this is very important in trading .
in my first diagram i mentioned it but le use the below to simplify things .
From the picture above , the resistance was broken and you entered a trade then it go to an apex where the price was strugling and you didnt take profit , then the price start to fall again and aother support begins form which is warning to take profit or risk , if you risk and it goes against you , you to exist trade at the first support you set , doind this will let you stop loosing .
OOPS , i enjoy todays task , i learnt a lot about technical skills required in crypto ecosystem , which can help improve my newbie trading experience and also how to manage my risk . i will keep thanking @steemcurator01,@steemcurator02,@steemitblog and all the cryptp academy profs for a worderful training oportuinity for us .
#cryptopattern #steemitcryptoacademy #steemit #stream4u-week3 #ghana https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcRr7xmFbfmI8-gk257ay2prrAHpYgN1nBMS2g&usqp=CAU
Hi @chotu1
Thank you for joining Steemit Crypto Academy and participated in the Homework Task 3.
Your Homework task 3 verification has been done by @Stream4u.
Thank You.
@stream4u
Crypto Professors : Steemit Crypto Academy
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit