SteemitCryptoAcademy Season 3 Week 3 – Advanced Homework for @cryptokraze

lenonmc21 (68) in hive-108451 • 3 years ago (edited)

^{Cover created in Canva}

Greetings to everyone in the "SteemitCryptoAcademy", it is a pleasure to be one more week imparting knowledge, due to my role as a teacher in charge of beginners and also as a student, since, this time, I have learned a lot in the master class of one of the advanced course teachers, as it is @cryptokraze. The professor last week gave a lecture explaining one of his trading strategies in the financial markets, unfortunately I could not participate in his class, but, in this one yes, in that sense, this is my entry for this week's assignment of the professor "Cryptokraze", which explains another great strategy to approach the markets.

With nothing more to reference, I will be answering questions from the professor's class:

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What do you understand about the concept of test repeated breakout breakout strategy? Provide examples of cryptographic asset charts.

First before delving into what is the concept of the BRB strategy, I must give an explanation of, why it is so important to join the trend while it is still developing.

The trend and its continuation:

As the professor commented, the trend is your friend and I could not agree more with this premise, this is because, trends are formed by the big holders in the market in many ways, of which I will not delve into this task, but, we as retail investors who do not have enough capital to manipulate the price of a market, we must know how to operate in the continuations of trends, in short, follow the movement that these large investors are orchestrating. It is true that there are ways to trade against the trend and although there are ways to limit the intrinsic risk that exists in this type of investment, simply trading against the major movement, represents a much greater risk in every way, so, preferably we must join the prevailing trend of the market.

^{Screenshot of Tradingview}

What is the BRB Strategy?

In order to implement this strategy, we must know how to find areas of "Support and Resistance", which are a very important part to take an operation, however, I must emphasize that it is not necessary that these areas are at the highs and lows that the price has left, since, no matter where you are in the chart, the price is always leaving fractals (turns), which leave these supports and resistances. Then, taking this into account, once identified these areas, we observe the price path and wait for the strength of the trend and the price movement, make a break of this point, it is at this specific moment, is that opens our opportunity to enter an operation.

Now, to be able to appreciate in an illustrative way the above mentioned, I will place examples of how the strategy is given in a support as well as in a resistance:

BRB at a Support level (Sales)

^{Screenshot of Tradingview}

As we can see in the previous image, I got the ETH/USDT pair, a relevant support zone, where the price made a turn to the opposite zone of the main movement in this chart which is bearish, once I identified this, I marked it, later the price made a breakout from this point, due to the strength of the bearish movement, making a low point of oscillation, which I also identified, since, what I expect is that the price returns to the old support zone which is now a resistance, in order to seek some liquidity from bidders (Sellers) and continue down. Lastly, after the price has returned to the aforementioned zone, the next objective is to watch for a breakout of the swing low that was previously marked, which is the ideal time to take a trade following the downtrend.

BRB at a Resistance level (Buy)

^{Screenshot of Tradingview}

As we can see in the previous image, I got in the BNB/USDT pair, a relevant resistance zone, where the price made a turn to the opposite zone of the main movement in this chart which is bullish, once I identified this, I marked it, then the price made a breakout from this point, due to the strength of the upward movement, making a new maximum point of oscillation, which I also identified, since, what I expect is that the price returns to the old resistance zone which is now a support, in order to seek some liquidity from the demanders (Comparators) and continue rising. Lastly, after the price has again sought this zone mentioned above, the next objective is to watch for the breakout of the highest point of oscillation that had already marked previously, which is the ideal time to make a trade following the uptrend.

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Entry parameters for a Buy and Sell position with the BRB strategy.

Entry" parameters for a "Buy" position

The first thing to watch out for, is that the market approaches a relevant resistance zone, once this is done, we proceed to mark this level.
Then, we must wait for the price to make a breakout from this zone and make a new swing high.
Now we must watch for the price to return again to the above mentioned resistance level which is now a support, in order to seek liquidity and move up again.
Once the price has moved up, it must break this swing high in order to be a valid breakout, and then go to the last step.
Once the price has risen and has made the break of the last swing point, we must take the entry, just above the last maximum point made (The break of the level).

^{Screenshot of Tradingview}

Entry" Parameters for a "Sell" position

The first thing to watch out for, is that the market approaches a relevant support zone, once this is done, we proceed to mark this level.
Then, we must wait for the price to make a breakout from this zone and make a new swing low.
Now we must watch for the price to again return to the above mentioned support level which is now a resistance, in order to seek liquidity and go down again.
Once the price has gone down, it must break this swing low, in order to make it a valid breakout, and then go to the last step.
Once the price has gone down and has made the break of the last oscillation point, we must take the entry, just below the last minimum point made (The break of the level).

^{Screenshot of Tradingview}

Exit" parameters for a "Buy" position.

What we must first do, is to limit the risk in case of loss, for this, we must establish a level to place our "Stop Loss", if this operation fails.
This area where we will place our "Stop Loss", we will always place it below the resistance level that we marked at the beginning, which then became support for the "Retest".
In case the price does not develop as we have planned, it means that the trade is invalidated and consequently we must exit the trade immediately and identify again the parameters for a new entry to the upside.
Once we have entered the trade, we must set our Take Profit level to ensure our profit in case our trade goes in the right direction.
The risk reward of the operation, must be the minimum which is 1-1, this means that both our take profit level, as the level of loss limit must contain the same amount of pips or percentage, for a balanced operation that does not greatly affect our capital if we lose.
Finally, we can perform what is called a "Trailing Stop", which is to ensure our profits by raising our Stop Loss and letting the price develop if it still has a lot of strength to continue rising. This is so that we do not miss the entire price movement.

^{Screenshot of Tradingview}

Exit" Parameters for a "Sell" position

What we must first do, is to limit the risk in case of loss, for this, we must establish a level to place our "Stop Loss", if this operation fails.
This area where we will place our "Stop Loss", we will always place it above the support level that we marked at the beginning, which then became a resistance for the "Retest".
In such a case if the price does not develop as we have planned, it means that the trade is invalidated and consequently we should exit the trade immediately and identify again the parameters for a new downward entry.
Once we have entered the trade, we must set our Take Profit level, this to ensure our profit in case our trade goes in the right direction.
The risk reward of the operation, must be the minimum which is 1-1, this means that both our take profit level, as the level of loss limit must contain the same amount of pips or percentage, for a balanced operation that does not greatly affect our capital if we lose.
Finally, we can perform what is called a "Trailing Stop", which is to ensure our profits by lowering our Stop Loss and letting the price develop if it still has a lot of strength to keep going down. This is so that we do not miss the entire price movement.

^{Screenshot of Tradingview}

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Perform 2 demo trades on cryptoassets using the BRB strategy. You can use a lower time frame for these demo trades (screenshots are required).

LTC/USDT trade - 1m

For this section I chose to perform a demo trade with the LTC chart in 1 minute timeframe, I must emphasize that it is not a timeframe that I liked, but to test the effectiveness of the strategy, I tested it in a high volatility environment. With this in mind, I made a simulated downward trade, after the price makes the breakout of the last swing low that I make, at that moment I plot my tool to calculate in a short entry.

Example LTC/USDT:

^{Screenshot of Tradingview}

Later in the entry after waiting for a few minutes, the strength of the move prolonged much more, giving me a positive entry to the downside in the LTC/USDT pair.

^{Screenshot of Tradingview}

BNB/USDT trade - 1m

Taking as an example another currency pair like the BNB/USDT, I wanted to find a bullish trade by performing the strategy, but the market conditions do not favor a bullish move, since, by the time I made this publication, most currencies were pulling back a little, seeing this, I decided to try another simulated entry to the downside, to test the strategy. I also chose the 1m chart and as soon as I made the break of the last swing low I made, I simulated a downward entry with my short position tool, which looks like this:

Example BNB/USDT:

^{Screenshot of Tradingview}

Later in the entry, after waiting a few hundred minutes for the price to develop a little, it did not reach exactly the "Take Profit" that I placed according to the risk reward I took of 1-1, but, if it had gone out in a real entry, as soon as I was seen in profit it would have been a successful operation.

^{Screenshot of Tradingview}

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Conclusión

I want to thank Professor @cryptokraze for this fabulous lecture, related to a very good trading strategy using price action. I really enjoyed doing your class, thank you very much again for this great lecture, as it is clear to me that the simplest strategies in the market are the ones that work best.

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^{Imagen GIF proporcionada por jacorv}

hive-108451 cryptokraze-s3week3 cryptoacademy trading strategy price-action venezuela

3 years ago by lenonmc21 (68)

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cryptokraze (72) · 3 years ago

Dear @lenonmc21

Thank you for participating in Steemit Crypto Academy Season 03 and making efforts to complete the homework task. You got 9.5/10 Grade Points according to the following Scale;

Criteria	Grade Points
Presentation Style	2/2
Content Quality	2/2
Originality	2/2
Relevance with Topic	2/2
Practical Approach	1.5/2

Key Notes:

You have explained in excellent way and I liked your illustration and chart marking.
There is clarity while explaining the trade entry and exit criteria which I wanted to see.
In the last question, I wanted to see if students picked this strategy. Your 1st trade was not precise because the support level was not significant and price has not retested it as well. The second trade was good where you can see the previous support level was broken.

We appreciate your efforts in Crypto academy and look forward for your next homework tasks.

Regards
@cryptokraze

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lenonmc21 (68) · 3 years ago (edited)

Thank you very much professor @cryptokraze for your appreciation, copied to improve in another opportunity.

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daniromero (62) · 3 years ago

Saludos estimado profesor @lenonmc21, de verdad lo felicito por este gran post, es claro el conocimiento que tiene, necesito comentarle algo que me llamo la atención en su clase de esta semana, se trata de dos publicaciones de tarea que se hicieron en la steemit crypto academy, es un caso raro, son usuarios con nombres de usuario muy parecidos, publicaron casi al mismo tiempo y el contenido de la publicación solo dice Hola.

Creo que la intención es publicar antes del cierre para luego editar y colocar el contenido antes de que usted la revise, esto es contra las reglas ya que tratan de engañarlo a usted y a steemit, estos perfiles son muy similares y creo que se trata de una sola persona con cuentas múltiples, podría revisar por favor, los nombres de usuario son, @joemuknic y @joemuk.

A continuación le dejo unas capturas de pantalla donde puede confirmar la hora de publicación y el contenido de las mismas.

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lenonmc21 (68) · 3 years ago

Hola saludos @daniromero, muchas gracias por tus comentarios sobre mi publicación y por la información también, lo tendré en cuenta al momento de la revisión de estos usuarios.

Steemit Cryptography Professor.
@lenonmc21

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daniromero (62) · 3 years ago (edited)

Es lamentable profesor, no me gusta señalar a un compañero, se el trabajo que cuesta preparar una publicación de tarea, por lo general a mi me lleva bastante tiempo, pero considero que las normas se deben respetar, leo muchas publicaciones de tarea para aprender mas, y viendo las ultimas que se publicaron en su clase me encontré con esta otra irregularidad, el compañero @nachomolina2 publico su tarea con solo 2 preguntas, la 3 y no fueron respondidas, pienso que para ser editada después, es una lastima por que era una buena tarea y solo pensé que debía saberlo, ya queda a su criterio, y espero que no tome esto como si quisiera mal para mis compañeros, al contrario, quiero que todos hagamos las cosas como se deben hacer.

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yancar (75) · 3 years ago (edited)

Hola profesor @lenonmc21 saludos, mire hace 4 días le envie mi tarea numero 1, se la deje en su publicación de esa clase y aun no he recibido ninguna respuesta, aquí le dejo el link.
https://steemit.com/hive-108451/@yancar/steemit-crypto-academy-season-3-week-1-or-que-es-el-trading-de-criptomonedas-y-en-que-plataformas-podemos-hacerlo-by-yancar
Espero entienda mi preocupación y si estoy errado en algo por favor digame, porque quiero aprender y quiero realizar todas las tareas y ponerme al día.
De antemano muchas gracias.

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lenonmc21 (68) · 3 years ago (edited)

Saludos @yancar. Las tareas tienen una fecha de vencimiento y esta venció hace 2 semanas. Por favor, antes de realizar una tarea debes leer las reglas, claramente en las publicaciones de "Cursos Dinámicos" de los profesores, refleja hasta que día esta permitido publicar para que tu tarea sea valida y revisada.

Debes estar atento a las publicaciones de @steemitblog, para que sepas que tareas estan disponibles, para esta semana numero 4. En la siguiente publicación observaras las tareas que estan vigentes para esta nueva semana.

https://steemit.com/hive-108451/@steemitblog/the-steemit-crypto-academy-weekly-update-july-19th-2021-new-courses

Steemit Cryptography Professor.
@lenonmc21

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yancar (75) · 3 years ago

Saludos profesor @lenonmc21, ok profesor ya corregi eso, lo que pasa es que pense que como era mi primera tarea, tenia que colocar la primera etiquita osea la de la semana 1, muchas gracias profesor, entonces ahora espero por la revisión para realizar la tarea 2