Hey team,
So much for my forexbrokr username, huh.
But with the centre of the crypto Roman Empire undoubtably being LeoFinance, you know what they say....
When in Rome!
Well, when it comes to day trading my strategy, a market is a market is a market.
It really doesn't matter whether you're day trading forex, crypto or something as wild as pork bellies.
As long as you have trading volume, then you're going to have price action that respects the laws of supply and demand.
Something you can take advantage of by trading around support/resistance zones.
Ethereum Analysis
Ethereum price action caught my attention today and is a setup that you're not too late to jump on, if it tickles your fancy too.
You're going to have to scroll back to June to find why I'm using this particular zone, but once you do it's pretty obvious.
Take a look at it on the following chart:
ETH/USD Daily:
It's pretty clear that price respected the zone on the daily as both resistance and support before that.
If a zone like this was retested in the past, then it can be reactivated and that's exactly what we see when we look at the more recent price action.
Now scroll forward and look at where we're at on the hourly:
ETH/USD Hourly:
You can see that the same daily zone has held as support and price has bounced back up above support.
As per my strategy, we then take the first short term area of resistance and when it's retested as support, go long.
This ensures that the price action on multiple time frames are all pointing to the same outcome and allows us to target excellent risk:reward on the entry.
Conservative traders will place their stop below the daily zone, while more aggressive traders will place their stop below the intraday zone.
One common misconception about day trading is that it's high risk.
But when done properly, it's actually safer than buy and hold strategies because your downside risk is 100% defined.
You know exactly how much you're going to risk and can even add into winners while keeping your risk the same.
Best of probabilities to you,
Dane.
FOREX BROKR | LeoFinance Blog
Daily market analysis.