How to maximize the profit from our service? (EN)
In order that trading brings you more profitability and the amount of stop-loss was minimal, we recommend some simple tips on how to use our service. This will allow you to make the most profitable trades.
Let's look at a few different examples on cryptocurrencies.
Our priority scenario in ETH is the continuation of price growth in a small wave (5). We believe that the pullback in wave (4) is not over yet and it is possible that the price will still go down to $1445 before the growth. If Ethereum falls below this level our marking will change.
The first example is a wave analysis of Ethereum cryptocurrency. Each chart is accompanied by a commentary. Let's analyze it in more detail.
Our priority scenario in ETH is the continuation of price growth in a small wave (5). We believe that the pullback in wave (4) is not over yet and it is possible that the price will still go down to $1445 before the growth. If Ethereum falls below this level our marking will change.
🔹The first thing important to notice is the main trend of ETH. And that is growth, as indicated in the commentary. It is always important to pay attention to the main trend.
🔹Further, it is stated that at this point, it is not certain that the price pullback down after the momentum into growth is over. In this case, the decline is a pullback, but the main trend remains up. In the forecast we specified the tentative targets of the pullback to $1445, after which we expect the resumption of growth with high probability. That is, at the moment, it will be safer to work on buying, on the main trend.
🔹 It is important to remember, that the lower the price goes to the pullback, the more profitable your buy, the earlier you buy, the less profitable your buy. In the following figure, we have visually shown where it will be most profitable to go into a buy:
🔹The blue arrows indicate profitable levels for buying ETH. It is not a mistake if you buy ETH from current prices, but it will be less profitable.
The greater the distance from the current price to the cancellation level of the scenario - the less profitable the deal.
🔶 Each forecast has a scenario cancellation level: if price touches a level, the markup will be revised, as the wave structure changes when important levels are violated. When scenario cancellation levels are reached, you can continue to hold the trade at your discretion if you still think price may return. Or you can close the trade to avoid increasing your risk.
🔶 In this example with the red arrow we indicated a less profitable option to buy ETH, because the distance to the cancellation scenario is large, and the potential profit point ($1640) is already close.
There are times when you don't see a forecast immediately after it's published and the price has already risen. It is always your choice to enter a trade or not, but the risk here is potentially greater than the profit. So in this case, you can skip entering and wait for a better moment.
🔷 If you want to get more frequent market entry opportunities and analysis on them during the day, subscribe to our 🔵Premium service.
🔶 Let's dwell more on profit taking. In this example, the mark of reaching the target on ETH is the level of $1640. When the price reaches this level, you can close the whole trade, partially close the trade or transfer it to Breakeven*, as well as continue to hold the position if you think that the growth will continue.
Breakeven (Breakeven level, BU) - transfer in an open trade StopLoss order to the level of the opening price, after the price has passed in the necessary direction a certain number of points. If the situation with the instrument is correctly assessed and analyzed, and after opening the position the price moves in the right direction, the trader can avoid losses in case of price reversal in the opposite direction. For this purpose the stop-loss order is moved to the level of opening of the transaction.
We recommend to follow the rules of money-management and control your risk in transactions. We recommend to set a stop loss (loss limitation) on each trade.
🔶 Pay attention to the small difference in quotes of different exchanges. Therefore, for fixing profit or closing the deal by StopLoss, it is better to take not a specific point, but a range. In this example, the level for fixing of profit is $1640. Thus, you can fix the transaction earlier: on $1600 or on $1630.
Let's look at another example for Bitcoin.
Our priority scenario in Bitcoin is to continue rising in wave v to $23790 or $25101. In case the BTC price falls below $213344 this scenario will change.
🔷 In this forecast for Bitcoin, it is likely to continue to grow from the current marks. It does not mean that there will not be a correction. But it means that buying from the current levels will not be a mistake. The main option is growth, as the wave analysis suggests. The blue arrows on the chart show the most profitable levels for the purchase, where the ratio of profit to potential loss will be optimal:
🔶The following figure with red arrows shows less profitable points for entry: the price has already passed a certain distance to the upside, and the profit taking will be very close:
Our analysis allows you to easily build your own profitable trading system, you can make it the main one or use it as an addition to your trading system. We wish you profitable and pleasant trading!
Instagram | Trading View | Twitter
For questions: FinWave Manager
