There are a lot of strategies for earning money on the market. But most of them today cease to bring profit. This is explained by changes in the market. But some strategies are always relevant. One of them is used by the most successful traders. We will share with you the strategy that elite traders prefer to keep secret.
Developing a plan for an elite strategy
The most important part of trading is to make a plan. To do this, you need to reread the news released and evaluate the most promising coins to trade. Always choose an asset that has a lot of traded volume. This will reduce the risks of slippage.
After choosing the right asset you should:
- Know at what price to enter the market.
- At what level to place a Stop Loss order to limit potential losses.
- At what price the position will be closed.
Elite strategy in practice
So, the elite strategy used by experienced traders is trading based on support and resistance levels! Using it, you will always be ahead of the trend line on the chart 😉
In fact, this strategy is suitable for anyone: both a beginner and an experienced trader. First of all, we need to understand what support and resistance levels are.
Support is a price level below which asset prices tend to bounce upwards. This is because, at this level, there are a significant number of buyers willing to purchase the asset, considering it cheap.
Resistance is the price level above which the asset’s prices tend to bounce downward. At this level, there are a significant number of sellers who are willing to sell the asset, considering it expensive.
The price must touch the support/resistance line at least 3 times. Only in this case, the levels can be considered strong enough to hold the price.
Trading from Levels: Strategy Formula #1
If the price regularly bounces off support and resistance levels, you can buy the asset when the price approaches the support levels. Then sell when the price approaches the resistance levels.
Stop loss levels can be set just above or below these levels in case of a breakout. This strategy should be used with maximum concentration.
When the asset gives reasons that the price will hold inside the horizontal channel — only then you can open a position.
Example of opening positions based on support and resistance levels.
But it is important to be as careful as possible and remember the bull and bear traps. In a fake breakout, the market simply collects the stops of short-sighted traders. This kind of strategy is great for any short-term or swing trader.
Level Breakout Trading: Strategy Formula #2
Ideally, a buy is made from a support level in anticipation of a full-fledged breakout of a resistance level. Such a trade will be ideal for many traders. Short stops will reduce the risk, and Take Profit orders will collect profits in time.
Example of opening a long position from a support level and closing a position when resistance is broken.
These and other strategies can be used on MOVO. Multiplayer will help you to increase the position volume many times, multiplying the potential profit. And the flexible stop loss order setting in %, price or USD will help to reduce the risk.
Overweighting a position
Experienced traders always know when to average their position. Trading from support and resistance levels is ideal for realizing such a technique. Improving the average buy/sell price, when the volume is higher than the initial one, allows for earning much more. You can see from the above examples where you need to get more. At the same time, your Stop Loss order should not move.
Self-control and discipline
Follow the trading strategy described above and do not give in to emotions. Allow your trading decisions to be based on analysis rather than fear or greed. Continually educate yourself and adapt to changing market conditions. Use your experience and analysis of results to improve your strategy. Then you will be on par with the best traders of all time and will be able to make a huge fortune!
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