Hello!
This is my first SandBox collaboration, I’m very excited to collaborate with this community and to see how this goes on…
*This is an act for Write an analytical analysis on NEAR Token and Price
CHART
The explanation for a short-term trade:
The general idea with this analysis is to show less-experienced traders, how basic technicals can be used to understand the overall market situation and try to predict how it will behave. We all know that there is a lot more in trading than what we are going to cover in this analysis, but in my opinion “keep it stupid simple”.
Explanation of the drawings in the chart:
- Price action zones: A price action zone can be described as ‘sticky points’ on the chart where the price has displayed at least one of the behaviors: Hesitated to move up further after a brief up move. Hesitated to move down further after a brief down move. Also, it can be a good indicator for a place in time where the price has reacted violently or with great amplitude in the past.
- Hight and Low points: These are points we can use to clearly see the tendency, the idea is to draw or mark a point where the price has gone higher or lower than the previous movement. The chart shows a Low to High movement that then changed for a bearish market, breaking the tendency and leaving a Lower-Low point, opening opportunities for short trades.
- Break down: A breakdown is a downward move in a market price, usually through an identified level of support (in this case the level of support is defined by the action price zone), that portends further declines. A breakdown commonly occurs on heavy volume and the subsequent move lower tends to be quick in duration and severe in magnitude.
- Breakout (up): A breakout refers to when the price of an asset moves above a resistance area (in this case the resistance area is defined by action price zones), Breakouts indicate the potential for the price to start trending in the breakout direction.
Using only these basic concepts we can easily determine the current tendency of the market and adjust our trading plan accordingly.
We can see 2 clear action prize zones (white) based on pure price action analysis we have 2 possible outcomes:
Buy (green path): the safer way to trade that price action zone is to wait for a pullback to the zone and the buy long when the price goes above the previous daily green (bull) candle close.
Targets: first TP point will be the restructure breaking point (yellow line) second TP will be the l-hight point and the last TP will be the previous H-hight point.
Be careful and know that you are trading against the tendency thus, adjust your risk-reward ratio accordingly
IN MY OPINION, THIS IS THE LESS LIKELY SCENARIO DUE TO THE OVERALL CURREN CRYPTO MARKET TENDENCY AND FUNDAMENTALS.
Sell (red path): The plan for this trade is to wait for the price to break down the l-low point (under the price action zone) and go short after the breakdown or wait for a test to the price action zone and then go short. This can open an opportunity for a long-term trade aiming for the 1,25 - 0,87 area.
The risk-reward ratio in this scenario can be greater.
IN MY OPINION, THIS IS THE MOST LIKELY SCENARIO CONSIDERING THE CURRENT BEARISH TENDENCY AND THE OVERALL CRYPTO MARKET.
Reward Estimate:
12 NEAR per 500 words
Type of Activity: Content creation
Act: Bringing People to The Sandbox
Type of activity: Sandbox Referral Program
chepe 19#7323 a new cryptocurrencies enthusiast that is showing a lot of interest in learning about the NEAR ecosystem and the Blockchain technology in general.
Reward: 3 NEAR.
the OWS Sandbox voted through your SputnikDAO proposal, but we ask that next time, you include in the “About” of your post which moderator approved your reward claim. It helps us keep track of all incoming claims. Thanks for joining us in the Sandbox and looking forward to see you at our AMA tomorrow (or any future one)!
