#ProjectCrypto

Buying Strategy at Potential Support with Trade Management through Averaging Down

Average Down Strategy

This strategy relies on entering a trade gradually instead of buying all at once, especially when we are not sure about the market direction.

We start buying from the first potential support, and if the price drops, we buy at every stronger support level. This way we reduce the average purchase price, and upon a slight recovery, we can exit with a small profit or loss.

Practical Example:

The price was at $1.00, so the trader started buying:

Bought the first batch at 1.00$

Then the second batch at 0.70$

And the third at 0.60$

And the fourth at 0.50$

After that, the price only rebounded to 0.70$ .

And although the price did not return to $1.00, the trader exited with a small profit because the average purchase price decreased thanks to averaging down.

In summary:

This method is suitable if you suspect that the price will drop slightly before recovering, provided that you choose a strong currency or an effective support area, and that you are disciplined in managing your capital.

#BTC#