Practical example of entering a trade (strategy I use)

Suppose you are monitoring Bitcoin on the Binance platform and want to enter a buy trade based on technical analysis.

1. Trend analysis:

After reviewing the Bitcoin chart on a 4-hour time frame, you notice that the currency is in a strong uptrend, having risen from $28,000 to $30,000 in the past few days, this is just an example.

You have confirmation from the RSI (Relative Strength Index) that it does not exceed 70 (which usually indicates that the market is not overbought).

2. Determine the entry point:

The current price of Bitcoin is $30,000.

I found a strong support point at $29,500. Based on this, you will wait for the price to drop slightly to the $29,500 level to enter the trade.

3. Determine the loss level (Stop Loss):

You decide to place a Stop Loss of 2% below the entry point to protect yourself from losses. If you enter at $29,500, your take-profit level will be $28,900.

4. Setting a take-profit level:

Based on technical analysis, Bitcoin is expected to reach $31,500 if the uptrend continues.

Therefore, you set the Take Profit level at $31,500 to make a profit of 7% of the trade value.

5. Managing the trade:

After entering the trade at $29,500, you monitor the market movement. If the price reaches $31,500, you make a profit of 7%. If the price drops to $28,900, the trade is closed with a loss of 2%.I hope I have been helpful.