Crypto Academy Season 3 || Homework post for , Intermediate Course: Spotting Market Reversals With CCI ...|| By @shahidchoudary

Hello Everyone 👏👋 i hope you all are fine . As you may have fetched from the heading i am here for my homework post given by @asaj . I liked the lecture very much and professor explained about market reversals and their reasons along with consequences beautifully . So , let's begin our task ;

Source

I will answer the questions in the sequence as asked by professor . So here is first one :

Open a demo account on any trading broker and select five cryptocurrency pairs .

As i was asked to choose one plateform from the given ones so i chosed FTX because I found it more convenient . It is one of the most easy interface exchange where you can trade easily.
First of all you are given with options for trade , market and also with exchange in wallets.

In trade you can open chart and check all the values . But any indicator has to be enabled first , like i did , for this you have to click on adjust icon and then select commodity channel index .

I took length slot of one day. And limit was 20 .
I selected following cryptocurrency pairs :

• BTC-PERP

• LTC - BTC

• ETH-PERP

• DOGE - PERP

• BTC - USDT

Now you are all set to trade on FTX . All details of the pair that you have selected are appeared like volume and amount . Red lines represents a fall and green ones represent a increase . You can enable any index according to your need .

Reversals keeps on going but their rate and graphic value could vary .

Create a market entry and exit strategy :

I made a proper mark exit and entry strategy considering the price fluctuations and amount of loss that i can bear .

• Entry Strategy :
  Obviously first of all considering the index , it should be in the lower values. Keeping the record in mind the point where no further decline is possible is to be the entry point of mine . Like am investing in trade of BTC-PERP , it is necessary for the Btc to be in better state like on average 40,000 USD. And PERP is fluctuating between 9 to 12 USD but this fluctuation is more stable than that of BTC . So i will enter where value is Lowest for PERP i.e 9 USD .

• Exit Strategy :
  Again its game of graphical values . Now i have to decide my exit so it should be at the point where i get maximum profit and hence i will make an exit at 12 USD which is the peak value for PERP. I can't wait longer but that would be risky.

Use the signals of the Commodity Channel Index (CCI) to buy and sell the coins you have selected .

I am not an expert , So i play safe , just when i saw that CCI was at -105 i made an entry. My target was to make an exit at +100 .

• The One BTC conversion gives 4060 PERPs. This value is at negative index . As it jumped to positive index of +97 i made the exit . I know this was earlier but i think it is the right thing to do.

• When i made exit the index had started falling again so that was the reason for exiting just before the target . Then the values of index and volume were changed .

In the above screenshot the index is now at +70 so its safe to wait for it to go upto or more then +100.

-Declare your profit or loss .

Actually i was like in better state. I got a prominent profit . Let me explain :-

• I made entry where my assets worth was 36,600 USD . When the prep price was 9.2 USD and when i left it was 10.1 .

• The total profit i generated from it was almost 4000USD . The profit became larger because the num of PREPs was bigger so it turned out with bigger profit .

Explain your trade management technique :

I kept many things in my mind while trading . Because when you trade especially digital trading ,you need to consider every miner detail because every little aspects matters here.
I kept following things in my mind ;

• Technical analysis
• Selection according to budget
• comparing the profit and loses
• Mental analytical approach

Starting with technical analysis , i must say that you can't trade successfully without technical analysis . These analysis helps you to be more specific about details and the data you check helps you to check graphical details . Then you have to trade according to your budget because you should be able to bear the losses in case you meet them and so your financial situation shouldn't be get worse . Here i want to mention mental approach is also very important because your thinking ability tells you a lot that what you have to do .

I always keeo in mind that the loss and profit are parallel and they goes hand by hand while trading so you have to keep them in mind if you want to trade wisely and bravely .

°°°°°Thé EñD°°°°°

Thank you very much for reading , i hope i answered all the questions accordingly . Please leave your questions and suggestions in the comments section 😇😇✨

🖤🖤🖤

Submitted to ;

@asaj

Submitted by ;

@shahidchoudary