How not to get REKT trading against the trend.
Case study: $AAVE
Another thread on "Learning Technical Analysis".
Case study: $AAVE
Another thread on "Learning Technical Analysis".
It is highly important that you understand the levels where price is reacting from and how they affect how price moves subsequently.
Let's dive into the $AAVE example.
Let's dive into the $AAVE example.
Price falls into a daily demand zone, an order block on the Daily Time frame.
Usually daily demand zones tend to push prices higher.
Usually daily demand zones tend to push prices higher.
But a comrade somewhere decides to fade a Daily demand by shorting at a 10mins supply.
Red zone = 10mins supply
Red zone = 10mins supply
Shorting a daily demand with something like a 10mins supply is like trying to stop a moving train with a wheelchair, you'd get crushed.
As expected, the comrade gets crushed.
As expected, the comrade gets crushed.
Here's what the comrade should have done.
1. Take a swing buy, at the daily level.
1. Take a swing buy, at the daily level.
2.
Map out a 4hr demand in the D1 demand and take day trade there in line with the trend.
Map out a 4hr demand in the D1 demand and take day trade there in line with the trend.
In this example, after price hits the 2nd target, the structure breaks to the downside and changes to bearish, so it's best to close the trade and take profit.
You never go broke taking profit.
You never go broke taking profit.
3.
As price reacts to the 4hr demand, map out a lower time frame demand to buy from, in this case the 1hr.
As price reacts to the 4hr demand, map out a lower time frame demand to buy from, in this case the 1hr.
Set targets and manage your trades, and there you have it, a comrade is in profit.
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