Someone recently asked me, "Will it work?"
Since that’s always the ultimate question, I’d love to answer it in depth as best as I can, hoping you’ll take away a tip or two that will help you profit in your upcoming trades.
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Firstble, there is no such thing as 100% in trading... but the statistics are definitely in our favor 😁 I'll do my best to explain it :
As you can see in the first image, $TRX usually trades above the 200 SMA on the daily chart (the purple line). Every time it touches it (like right now), there is a 30-50% price jump, and each time it surpasses the peak of the previous bounce.
As you can see, we currently have two key peaks:
Near Peak: $0.3765
High Peak: $0.45
Since history shows that after touching the 200 MA, the price jumps above the previous peak, we can expect it to move above $0.3765, and perhaps even past $0.45.
So, how do we know what to expect?
Let’s move to the second image :)
As you can see, if it rises above $0.3765, it forms a Cup & Handle pattern on the weekly chart and breaks out, with a technical pattern target of up to $0.467.
Historically, there is a 75% probability that a Cup & Handle pattern will reach its full potential after a successful breakout.
To break it down:
Current Price: $0.327
Target 1 ($0.3765): ~15% potential gain
Target 2 ($0.45): ~38% potential gain
Target 3 ($0.467 - Full Pattern Target): ~44% potential gain
Note: I recommended setting a Stop Loss at $0.314, which caps your maximum potential loss at just 3.8%.
What do I suggest doing?
Since the potential loss is only 3.8%, you could use higher leverage without taking on more risk than in standard spot trading...
Set a low trade amount that you are comfortable losing—for example, $200. Set leverage to 25x with no stop loss at all (giving you a total position size of $5,000). This means that if the chart drops by ~4%, you lose the full $200 (acting as an automatic liquidation stop loss).
However, if it hits the targets:
Target 1 ($0.3765): $750 profit
Target 2 ($0.45): $1,900 profit
Target 3 ($0.467): $2,200 profit
#TradingSignals
Since that’s always the ultimate question, I’d love to answer it in depth as best as I can, hoping you’ll take away a tip or two that will help you profit in your upcoming trades.
-------
Firstble, there is no such thing as 100% in trading... but the statistics are definitely in our favor 😁 I'll do my best to explain it :
As you can see in the first image, $TRX usually trades above the 200 SMA on the daily chart (the purple line). Every time it touches it (like right now), there is a 30-50% price jump, and each time it surpasses the peak of the previous bounce.
As you can see, we currently have two key peaks:
Near Peak: $0.3765
High Peak: $0.45
Since history shows that after touching the 200 MA, the price jumps above the previous peak, we can expect it to move above $0.3765, and perhaps even past $0.45.
So, how do we know what to expect?
Let’s move to the second image :)
As you can see, if it rises above $0.3765, it forms a Cup & Handle pattern on the weekly chart and breaks out, with a technical pattern target of up to $0.467.
Historically, there is a 75% probability that a Cup & Handle pattern will reach its full potential after a successful breakout.
To break it down:
Current Price: $0.327
Target 1 ($0.3765): ~15% potential gain
Target 2 ($0.45): ~38% potential gain
Target 3 ($0.467 - Full Pattern Target): ~44% potential gain
Note: I recommended setting a Stop Loss at $0.314, which caps your maximum potential loss at just 3.8%.
What do I suggest doing?
Since the potential loss is only 3.8%, you could use higher leverage without taking on more risk than in standard spot trading...
Set a low trade amount that you are comfortable losing—for example, $200. Set leverage to 25x with no stop loss at all (giving you a total position size of $5,000). This means that if the chart drops by ~4%, you lose the full $200 (acting as an automatic liquidation stop loss).
However, if it hits the targets:
Target 1 ($0.3765): $750 profit
Target 2 ($0.45): $1,900 profit
Target 3 ($0.467): $2,200 profit
#TradingSignals