Price Action + Break-Even Technique - Crypto Academy / S4W4 - Homework post for @ lenonmc21

4개월 전

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Define in your own words what Price Action is?

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Every item in the market has a price, which implies it can be buying and selling. The transactions that take place inside this asset's market influence the price increase and drop according to Supply and Demand.The price action of an asset in the market is a visual representation of the increase and fall in its price.

  • Candlesticks, Line, and Bar charts can all be used to illustrate it. The act of using the historical movement of price in the market to forecast its future action/movement is known as price action strategy. This can also be referred to as Naked Trading because traders do not employ additional Technical or Fundamental Indicators to analyse or predict price changes.
    Swing and day traders both employ the Price Action technique to predict price movement by seeking for rapid breakouts at favourable positions based on prior price movement.

  • Despite the fact that all indicators are generated from price action, it is still necessary to employ them in conjunction with the price action approach in order to obtain a successful outcome.

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Define and explain in detail what the "Balance Point" is with at least one example of it (Use only your own graphics?

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The breakeven point was explained to me as a support or resistance zone established by the last candle that has continuity in the movement it makes in the trend's last impulse. Which we will then mark in order to identify a zone in which our asset is likely to react, and as a result, we will mark the equilibrium point in order to make judgments when the price hits these zones.

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On the XRP / USDT chart, we can see the breakeven point in the frame, and we're looking for a trade when the breakeven point generated by the candle in the bullish or bearish momentum is breached. We must first identify these locations and then use price action to uncover buy or sell opportunities in these places that function as market resistance and support.

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Clearly describe the step by step to run a Price Action analysis with "Break-even"??

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  • 1 .When beginning the analysis, we must first be clear about the time frame, as the teacher instructed us in class. To identify support and resistance zones, I'll use a longer time frame of 1 hour. Then I'll seek for tickets in a shorter time frame in order to obtain tickets with better chances.
  • 2 . We'll indicate the Horizontal Lines of resistances and supports in the time frame longer than 1 Hour after we've cleared the time limit. This is significant since the price managed to react in these places, and we will use them to identify profit areas.

  • 3 . Now, we will position the breakeven marks in a time frame of less than 15 minutes, taking into account the market trend, and hunt for entry possibilities.

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By highlighting the support and resistance points of the primary temporality in the first image, we would have already completed our technical analysis. After that, we hunt for entry chances through price action in the shortest time frame on the chart. Although the price action technique may appear simple, the trader must have a good eye to identify the important points left by the market. It is important to note that identifying these areas if you do not have prior market experience is difficult.

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What are the entry and exit criteria using the breakeven price action technique?

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When executing trades in the market, it is critical for every trader to be clear about the entry and exit criteria. Now, considering the price action strategy with the breakeven point, we'll look for the following criteria, which I'll outline below:

  • The trader who already has a technical analysis of the asset, including price action, resistances, supports, and breakeven points, will look for a breakdown of these breakeven points. When breaking up or down the breakeven points, we must look for a strong candle to confirm the break and enter the market quickly.

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The entry gave a take profit after breaking the breakeven point in the XRP/USD pair, as you can see. The sale entry was good, and the purchase entry might also provide a take profit.

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What type of analysis is more effective price action or the use of technical indicators?

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Price-Action refers to the use of historical price movements to forecast future price movements. This means that the trader will use original price movement data to verify predicted price movements. Technical indicators are just taken from price movements, which means they will project a diluted price analysis.

  • Because technical indicators have individual attributes that were generated based on price action, I believe that Price Action is more effective to use than technical indicators. Technical indicators can sometimes produce false or dull signals. Because of their complicated interface, technical indicators are especially prone to deceiving readers who are new to trading. The undiluted outcomes of price movement based on trading activity in the assets market are provided by price action.

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Practice (Only Use your own images)Make 1 entry in any pair of cryptocurrencies using the Price Action Technique with the "Break-even Point"

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First Of All thing I did was open a paper account on Tradingview and execute the trade utilising the price action approach with the breakeven point.

Pair : XRP/USDT

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My Horizontal Lines were drawn on the chart at the most important areas in the 1 Hour time frame, which I identified as resistance and support in the market. Then I switched to a timeframe of less than 15 minutes to find the breakeven marks established by the last momentum of the XRP / USDT pair's upper and lower candles.

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AT first, thing I noticed about the price movement was that it reacted strongly at the appropriate support level, indicating that there was a lot of purchasing liquidity in the area, causing the asset to climb again. Taking into consideration this momentum movement, when it contacted the support, I just waited for it to break out of my Balance, which was formed by the candle's resistance, and when it did, I made the buy immediately. When the profit risk was one-to-one, with my stop loss below the support zone and take profit at the same risk-to-profit ratio.

😍Thanks for your time😍

Regard by

@ghulamabbassss

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Greetings @ghulamabbassss. Thank you very much for participating in my class for season 4 (week 4), in the "SteemitCryptoAcademy ".

ParametersRating
Presentation Style (Markdown Usage)1.5/2
Quality of Content (Mastery of Subject Matter)1.5/2
Spelling and Grammar (Writing Fluency)1/2
Originality1.5/2
Practical Approach0.5/2
Total5.5/10

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Remarks:

  • The presentation style of your assignments is "Regular", since, you do not present order in the format and your structure although basic has quality. Your cover image is not related to the topic we are working on, which is wrong. The text separators in your presentation were good, however, they are not of your authorship, preferably you can make a custom one. I encourage you to keep improving and to put a little more effort in your presentations.

  • The quality of the content is "Fair", since you did not cover with much clarity and fluency most of the important details regarding the concepts of "Price Action and Breakeven Point", however, your example was good.

  • You have a "Fair" understanding of the strategy and analysis technique in conjunction with "Price Action", since, according to the step-by-step and criteria you described, you did not cover most of the important details about them and although you got several points right, in others you made mistakes.

  • Your answer on what type of analysis is best was fine. The answer you gave on this was well justified and valid.

  • In the last question, I wanted to see if the students had understood the strategy of the Price Action technique with the "Equilibrium Point", so your performance was "Deficient", since you did not correctly point out the equilibrium point in the screenshots you shared, and with this, the entry you could have made is wrong, since you did not do it.

Appreciate your efforts at Crypto Academy and look forward to seeing your next assignments.

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