[Source](https://www.tradingview.com/chart/mxLmhA35/
Q.1) State in your own words what you understand about the Perfect Entry Strategy (Place at least 2 examples on crypto assets)?
The perfect entry strategy is a simple and yet very effective technical analysis strategy, it comprises of the use of 3 tools.
200 Moving Average which acts as a support to hold price up in some cases and as a resistance, the 200-period Moving Average also denote the general direction or tell the overall trend in which the price is if the price action is seen beneath the moving average the market is perceived to be in an uptrend while if the market is seen above the price action that is termed as a downtrend
The stochastic oscillator is another very important component of the perfect entry strategy, it is a momentum indicator that moves uniformly in conjunction with the price actions while generating signals like overbought or oversold which can be used in this strategy to determine entry and exits.
The strategy comes with a three part condition that must be matched perfectly in order to execute the strategy effectively and make proper exit and entry with profit alongside. The first condition attached to the perfect strategy involves determining the trend of an asset i.e determining if the market is in a bullish trend or a bearish trend, the second requires confluence between the 200 Simple Moving Average and the candlestick and lastly a confirmation signal from the stochastic oscillator , after all the conditions are met in the chart only then can we make an order to either open or exit a strategy using the perfect strategy.
Explain in your own words what candlestick pattern we should expect to execute a market entry using the Perfect Entry Strategy
The candlestick pattern that should be expected before an entry should be made using the perfect strategy are more than one, we can use Doji as a trigger for entering a trade, a Doji candlestick usually appears in a chart when a price open and close are in equal conjunction with each other which may lead to a trend reversal so a doji candl stick is mostly used to signal a trend reversal. A morning star also when perceived in the market price can be used as a trigger to execute the perfect entry strategy seeing that a morning star is a bullish trend reversal pattern candle.And lastly the evening star, the evening star is a three candle reversal pattern which consists of a bearish candle which is closely followed by a Doji candlestick, and finally, a follow up bearish candle closing around the same level as the first bearish candle, the evening star candle pattern can be used to spot bearish reversals
Either of these candlestick patterns observed in the chart can be used to execute the perfect entry strategy
- Explain the trading entry and exit criteria for buy and sell positions in any cryptocurrency of your choice (Share your own screenshots)
What makes every strategy worthwhile is the conditions attached to them that have to be followed in order to fully get the best form of the strategy. Some of the conditions that need to be met before executing the perfect strategy include.
- CLEAR TREND DEFINITION
Before any moves can be made it is very important to note what trend the market is in before entering a position, this can be done on a broader perspective by adjusting and using a longer time frame to tell what trend an asset is, as a trader we all know that the most effective and lucrative trading are gotten from riding trends. As we can see form the screenshot below the asset is in a clear downtrend
- INDICATOR CONFLUENCE
For one to carry out a successful trade it is always advised to use more than one indicators, the more indicator one uses the more complex a chart gets but at the same time more information is being passed at a glance, If one indicator is suggesting an uptrend while the other is indicating a downtrend it would be best to wait till all indicators are in agreement before one should enter a trade
- STRATEGY
Strategies often consist of conditions and for beneficial trade, it is best to allow all conditions attached to a strategy to be met before a trade is entered that way a lower rate of loss will be encountered by a trader
Perform 2 demo account trades using the perfect Entry strategy for both a Bullish and a Bearish scenario. Please use a shorter period of time to execute your entries.
For the purpose of this question, i will be setting up my demo trade on Tradingview using the paper trading demo account. I will be setting up a take profit and stop loss ratio of 3:1 on the SOL to USDT pair and with the perfect entry strategy on a 1 mins time frame.
BEARISH ENTRY
[Source](https://www.tradingview.com/chart/mxLmhA35/
BULLISH ENTRY
CONCLUSION
The Perfect entry strategy although it quite easy and straightforward but with proper utilization, we can see how effective they are from the trades we have taken, if managed properly they can help a trader minimize loss by a lot and free one from the risk of liquidation in open order in the crypto market. Special thanks to professor @lenonmc21 for this explicit course
Thanks professor
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