I want to share a trade that left me with a big smile and demonstrates the power of technical analysis. I was watching the cryptocurrency $DOGS and the scenario on the chart was very clear.
The overall trend was bearish, with a series of lower highs and lower lows, a classic pattern that indicates weakness. To confirm it, my moving averages (7, 25, and 99 periods) were all above the price, a strong signal that the "bears" were in control.
After a strong bearish red candle, I decided to take my short position at 0.0001525. The price made a small retracement (something common), but my analysis remained firm. And it worked! The bearish trend resumed strongly, breaking the channel and allowing me to close the trade at 0.0001491.
The result: a profit of 3.36 USDT.
What does this trade teach us?
Confirm your Thesis: Don't act on impulse. The combination of the overall trend, price action (lower highs and lower lows), and confirmation with indicators like moving averages is key for a high-probability entry.
Patience and Confidence: The market rarely moves in a straight line. The small retracement may have scared many, but trusting the initial analysis allows you to hold the position until the trend consolidates.
Risk and Profit Management: Just like with losses, knowing when to exit to secure profits is crucial. A small but sure profit is much better than waiting too long and seeing the price reverse.
About $DOGS: For those who don't know it, DOGS is a native meme coin of Telegram, built on the TON blockchain, which has gone viral thanks to its integration with the platform. Like all meme coins, its volatility is high, making it fertile ground for trading if done with a solid plan.
What other indicators do you use to confirm a trend? I would love to read your strategies in the comments!
#Write2Earn #MemeWatch2024 #cryptocurrencies #trading #crypto #DOGS #technicalanalysis #tradinglessons #profits #investments #financialeducation
