EOS Short - Support and Resistance Trading Walkthrough

LeoFinance
15 days ago
2 Min Read
309 Words

Direct from the desk of Dane Williams.



Hey team,

During the most recent Bitcoin correction, we saw alts do what they always do and pull back harder than the grand daddy himself.

As we've been trading EOS on the blog recently, I was watching the EOS/USD market for an exaggerated drop as the pair was sitting right on major daily resistance.

If you're not sure about the daily resistance zone I'm talking about, you can go back and take a look at the daily charts in our last EOS blog that I've linked to in the paragraph above.

But for today, I'm just going to share the intraday price action in order to show just how technical this baby has been trading.

Just take a look at the EOS hourly below.

EOS/USD Hourly:
Screen Shot 20210216 at 9.47.52 pm.png

Using the steps I always follow and have shared before in my simple support and resistance trading strategy, let's go through the positions that I've marked on the chart.

  1. As price is below daily resistance, we only look for shorts.
  2. After daily resistance holds, we take the last 'short term support' zone on the hourly (just the last green candle).
  3. We short a retest into this short term zone and use it to manage our risk around.

I always use a 1:3 risk:reward and have marked trades of that nature on the chart above.

As you can see, price actually gave us a second chance to add into our original winning position, turning this one into a 1:6 or even better.

Trading is not gambling when you have a consistent edge that you can exploit over and over and ov...

Best of probabilities to you,

Dane.



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