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RUNE/USDT | Trade Review after Take Profit!

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@deniskj
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Roughly three days ago news of China Evergrande Group defaulting on its debts sent shockwaves throughout the global financial market, causing the unexpected dumping of cryptocurrencies led by Bitcoin.

Drilling deeper, it was easy to conclude that it was just another classic case of FUD (Fear, Uncertainty and Doubt).

Once the red candle starts drilling through imagined support zones on the back of negative sentiment, retail follows dumping into the market causing a snowballing effect.

That is what was happening with the Evergrande news.

Fortunately, these situations provide traders like me with massive opportunities to profit. The chart and the post below details the trade that I placed and my reasons for it.

RUNE/USDT | New Buy Orders Against China FUD!

Trade Evolution


As I mentioned in my previous post, I was anticipating that the price could touch the lower end of the support zone as plotted in the image above. This was around the $6.60 price.

In anticipation of this, I had another buy order set at $6.60 that would trigger automatically on the spot market. This trade was filled.

The other thing I was looking out for was the closing of the daily candle yesterday.

You can see how the candle that I have marked with a blue arrow "engulfs" the red candle. Keep in mind, this is the Daily Timeframe and thus a candle represents one day!

Technical traders call this an engulfing candlestick pattern. It can be bullish or bearish but in this case it is the former.

This made me incredibly confident that the price would break even higher today as can be seen in the next candle.

My take profit of $8.70 got filled a few hours ago for both my orders booking a nice wad of cash that I will probably be spending on the new Chaos Legion Splinterlands cards. :)

Lessons


One lesson that has been reaffirmed to me with this trade is the importance of not using your entire capital on a single trade.

I always break it to 50/50 just in case I mistime my entries.

My first trade was at $7.50 but as you can see, the price went all the way down to $6.4. My second trade was at $6.60 and that was a much better entry.

That wouldn't have been possible if I had used my entire capital.

Let me know if you pick up anything from this review and if it was helpful. :)

Posted Using LeoFinance Beta