Solid movement has been coming out of TRX over the past few days. Many people asking when should I enter and exit. Here is the answers and also this will allow you to understand when to enter a moving trade in the future.
If you have any coin going up and up fast its not always good to just jump in you need to find a position otherwise when you buy it can stop and drop.....
I am pretty sure a lot of traders have experienced buying into a coin and the moment you buy it the coin just stops and comes back down and you wonder how that is possible.
On the chart above you will see we have green lines and red lines..... The green lines are resistance and the red lines are your support.
Each time we cross a red line you would sell TRX as the next stop would be the red line below it, then if you got a bounce on next red line below you would buy again.
If your not in the trade you don't buy until you have a 4H candle close over the top of 1 of the green lines, if you were to enter a trade just before a green line then you risk the coin dropping down to the red line below.
If you enter into trade when we just closed over a green line which was your resistance this then becomes your support so you have entered a trade and you have support just below your price. This allows you to run a tight stop loss in a very safe position it and it also means yes you will make profit as the coin won't see any further resistance until the green line above.
When to sell? If the coin moves up and can't break a resistance level (green line) then returns down and breaks a red support level below this is the time to exit the trade let it find a new position for it to go into consolidation then reenter the trade when it closes back over the support it broke.
Right now TRX has to go into consolidation and I expect there to be some sideways action you can see the distance from the EMA to price that this needs to happen before you get further upward movement.
So future when trading map out your resistance and support levels as these are your friend and your entry and exit points.
Hi Cash, great as ever. I have one question, how do you identify support and resistance lines so accurately? Do you think you could make a separate class on this? :) thanks!
Cash-is-King
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@TomasDrska, just jump to your daily and weekly charts and use the resistance from these charts as your support and resistance lines. You can also use the Fib for retracement levels where you will find resistance and support.
Just google how to use the fib retracement tool, its very simple.
mrcarneasada
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Great advice, thank you.
Cash-is-King
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@mrcarneasada, thanks for great feedback its always appreciated