Crypto trading is high risk but when you get it right the gains can be explosive. My winning trade in SUI is shown below. I will analyse this trade and identify what I did right.
The chart above shows not only the making of a huge gain but what I want to focus on is the fact that it is a high quality set up and explain why.
You can't see the left of the chart but out of sight was a large move up and the price action was effectively moving inside a range just below the 200 period moving average. This trade follows my bull off the 200 moving average strategy. The facts that make this a high quality set up were as follows:
Price was trading in a relatively tight range
The 200 period moving average was now back to being between a straight line and a slight incline
The entry candle was a bullish elephant bar
The prior candle was a shooting star candle and despite this very bearish candle, the fact that a large bullish candle engulfing it is subsequently printed is hugely bullish
As the chart shows the price action moves to the upside, returns for a retest of the 200 period moving average and then rockets to the upside. I later added to my position on a bullish candle after a pull back. The challenge in these situations is when to take profits!
I took profits 4 times during the entire move, taking 15% of my position 3 times before eventually exiting my remaining position when the upside move appeared very extended. Profit taking is a very challenging aspect of trading. In this case my gain was 19R! I could have held it for longer but greed can be destructive.
In crypto trading there will always be plenty of opportunities to make strong gains. The results of this trade are shown below.
Trade Clearly!
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