Buy 
2025-01-14
Category: None

I just bought some XRP.  

I use two time frames to decide a trade entry - i.e. weekly/daily or daily/4h.  

1) I use stochastic in a higher time frame to confirm the direction of my bias.  If I am interested in going long, I first look at the daily stochastics (9,3,3) is reset, crossed and pointing upwards. 

2) If the first condition is met, I am going to check the 4H chart and start looking for an entry area.  I draw clear horizontal support/resistance area and also an ascending/descending trendline (only if it is a very clear trend).    Don't draw too many lines.  Keep it simple. 

3)  I open a position, if the price closes and bounces off the key resistance/support/trendline, and MACD lines cross and point upwards in the bull zone.  


XRP chart is presenting that exact scenario,   Therefore, I bought some XRP this morning where I drew the vertical line in the chart.  The price is approaching the previous week high and previous monthly high, so it might get pushed down temporarily or be choppy until it moves above these lines.    

I don't leverage trade so I don't have a predetermined stop loss/profit target.  I will probably close my position if a daily candle moves below, retests and closes below the red support line.  I usually take the initial profit when a clear negative divergence appears in either 4H or daily chart. 