For the new traders here. I just wanted to show you how to trade a breakout of a line.
This is a real example of a trade i entered minutes ago. ( BCC/USDT)
As you can see, the blue line shows the downtrend of the price. When the price break this line is a good signal to buy, expecting the price to go even higher after breaking the resistance line.
Things to consider:
1) Remember nobody knows the future and the market is unpredictable.
2) Price can break the line and after that go back and break it again. ( going against you). Thats why is very important to set up your STOP LOSS below the previous Lowest price so you can protect yourself form losses.
The BIGGEST difference between traders than win or lose money in the long term is that winners comprehend the important of money management. Never risk more than 5% of your account per trade!
If you like this analysis and profit with it don't hesitate about following me and thumbs up this chart.
I truly believe that the proce can go again to 900$!
Lets see what happen!.
My stop loss is at 655$
Lets see if price continue his way or go back again.
SELL BCC. SELL AT FOR EXAMPLE 549$. CONDITIONAL ( PRICE LOWER OR EQUAL THAN) PRICE 549$ AGAIN.
So, when the price hits 549$ the system sells it.
A good way to place pending orders is when you are trying to buy something:
Price is at 550$ and you want to enter the market at 500$.
So you go and place BUY at 500$. The system will place a pending order automatically since the price you are asking is lower than the actual price ( the system always looks to give you the best price as possible)
By the other hand, If the price is at 550$ and you want to enter at 570$, the system WILL EXECUTE THE ORDER since the price that you are asking for is worst than the actual price (again, the system tries to give you the best price) This can be use when you try to sell or buy fast and manually .
Im not sure if i explain myself well. if not you can answer this :)