All language subtitles for 6. Example 6 - How to Trade Tron (TRX)

Hello and welcome back to cryptocurrency trading masterclass by wealthy education.

In this video, we'll take a look at the Tron marketplace and we'll talk about some potential trades

that could have been taken in this market.

Now, unfortunately, we do not have a long history like with something like the stock market.

And that is one thing that you will run into with Krypto from time to time, but you make do with what

you've got, you can place your lines like you would any other time.

So, for example, four cents, I think makes quite a bit of sense because we have seen a lot of Wick's

here.

And here would be like five cents roughly.

Let's go ahead and just market as five.

And I suspect.

You know, generally there's some type of symmetry to a lot of these lines support resistance areas.

So here's three.

And I'm going to guess that probably, too, comes into play.

And even one would come into play.

So it looks like we've got a grid of about every cent something happens and, you know, you can even

see that the high was basically 10.

And.

You know, did we have a reaction at nine, so these are the things you need to look at on a chart.

Initially, now, the most obvious thing on this chart is that we had broken to the upside and broken

towards 10 cents almost immediately.

First couple of weeks and then from this massive shooting star, this is a huge shooting star.

It's over two cents.

And in this particular market, two cents matters quite a bit.

So now that I'm laying all these out, you'll see that this is a grid that I think holds pretty true

over time and we'll demonstrate this occasionally.

So we have all of these spots on the chart.

You can see this massive shooting star.

Put your stop loss on the other side, you break through the bottom of it and maybe wait for a break

below the eight cents level, turns out to be roughly the same thing.

And you can see the very first candlestick.

Broke down massively, broke down to five and a half cents before rallying and saving itself for another

hammer.

So people are thinking, OK, maybe we're getting back into a bullish mode, form this dodgy and then

finally gave way.

So there was a clear smash and grab type of trade.

And if you look, this is an area that I would suspect probably could also be marked maybe at five and

a half cents for support and resistance.

Looking at the weekly chart further, let's go ahead and put some volume on here.

That's another thing, is that volume wasn't that high.

At this move, so that shows you that perhaps there weren't as many people interested in trying at the

moment.

So looking at this, here's a candlestick that shows a massive input, but a massive rejection.

You can see that it took a monster to actually get back up there again, a massive push to the upside

at five cents we pull back well here at this point.

It's clear.

That we are trying to form something like this that is a little bit of an outlier and this is where

we need to talk about liquidity, liquidity is simply is there enough order flow?

Are there enough buyers and sellers?

I suspect that somebody pretty big got into the market here.

And that's where you get these nasty works like this, because, you know, if you come in and I'm just

using basic numbers here, but let's say you want to buy one hundred units of something.

But down in this area, there's only like 20 units available, so then the thing is, you have to when

you put your order in, you have to find the next one hundred in the market will fill you.

Maybe it takes all the way up there to get that one hundred.

And then that concludes with the whip falling back down where you find more demand.

In these smaller cryptos, you are going to run into this problem, so if you're trading on the weekly

chart, you're probably hanging on for the longer term anyway, I guess is the point.

You can see volume is picking up, so that helps with liquidity.

Let's go ahead and drop down to the daily.

Now, notice.

And we don't know how this is going to play out, but as I record this, the five cent level mattered

and it looks like we're trying to form a shooting star.

Well, where would you expect the shooting star to go?

I think somewhere around faucet's maybe just a little bit under.

So that is a potential setup going on right now.

You could take a look at.

This is kind of the perfect setup here in a nice push here and a pull back to this hammer, we break

above the top of it and you eventually grind, especially once you get this very bullish candlestick.

They're so simple candlestick trade.

We can put our Bollinger bands on and we can say, OK, well, this isn't tell us anything.

And this was clearly more than two standard deviations higher.

So it shouldn't be a huge surprise that we had to pull back.

We had the squeeze and we got that candlestick with the volume that we like to see.

So where are we going?

Well, you have to look at the next major area.

We're right here at the end of this day, we put a stop loss on the other side like any other time,

we're probably going to make a move towards four based upon the bodies in these thin markets.

You want to pay more attention to the bodies, not that you want to ignore the Wick's just that they

carry much more weight.

And typically that's that's true of most markets, but it's especially true with these very thinly traded

new crypto markets.

Notice that we're in a nice trend.

Leading up to this sell off and then continuation.

That is something that you need to take into account as well.

So let me get rid of.

The Bollinger bands.

So now I will let the two hundred and fifty day estimate show up again, got across here, this is the

Golden Cross and it's spread out nicely.

And in fact, you can see that it hasn't.

Really come close to shutting down and this and crossing back over for a death cross, and this is one

of those scenarios where it can keep you out of trouble, you didn't necessarily have to mess with it.

If you were a longer term believer in Tron, you board and you'll just trade when it tells you to trade.

In the meantime, though, even if you are that longer term trader, you look at a candlestick like

this and you know that, hey, we're probably going to get a pullback that's perfectly healthy.

But if you know that ahead of time, it's much easier to deal with.

Let's go ahead and take a look at.

The RSI.

Here we go.

Overbought condition, not a huge surprise.

Look at that volume spike that we pulled back, not a huge surprise that we're getting overbought here

as well.

You would expect that.

So you would expect the market to pullback to kind of fall into this area.

Same thing here.

Pull back here, pull back.

And it looks to me like.

Tron is very sensitive with the RSI, and it makes sense because, again, it's a small market, it's

not a huge market.

Take a look at this perfect setup volume whammer one cent.

RSI oversold.

That screams.

A reversal, and that's exactly what you got.

It is a bit difficult at times with a market like this.

To read too much into anything but like this double top here while it wasn't over, but notice how.

A relative strength index was dropping that tells you that maybe we don't have the strength that it

looks like we have got that double top end pattern.

So if you break down below there, you could see that we fell or the hammer bounced to retest, formed

a shooting star, formed another shooting star, broke back down and continued to move lower.

These.

Thinner markets are a little bit difficult to trade on short term charts, they can be done.

But you need to be a little a little bit more quicker and a little bit more sensitive.

So, for example, down here oversold you by that, you aim for the next major area.

That's three tenths of a cent.

Overbought at that three point two cent.

You're looking for probably moved to three.

This is completely overboard.

This gives you a little bit more of an opportunity for.

Amove, but again, very difficult to trade this type of market in these short time frames, and that's

why I think most people that are in a cryptocurrency like Tron are, you know, what you would consider

to be true believers.

They truly believe in this specific crypto and what it's going to do for the world, as it were.

Regardless, the one thing that you should be paying attention to is we're in an uptrend.

So you're looking for buying opportunities.

You're not looking for selling anytime soon.

You break to a fresh new high and take out that five cent level and you begin to look for a place to

place or stop, maybe halfway between these levels that matter in the market.

Or if we continue to drift lower, then you start to look at this.

For scent level, there's no point in fighting the market.

It's a great way to lose money.

You never do it again, though.

You need to give yourself a lot of room in these types of markets in general.

So that's why you're almost always better off either training.

I mean, at the very least daily, if not weekly.

And you have to truly believe in the market that you're dealing with.

As we are over budget, but we have broken above this resistance barrier, now, one has to think that

there will be buyers underneath looking to get involved somewhere right around.

You know this.

Four cent level.

It's been important in the past it should continue to be important, so I would expect a lot of buying

pressure in here, but we are overbought.

So that breather actually offers an opportunity.

You have to think of it as going to buy a television or whatever you want to pay five hundred dollars

for it or you are much more interested in it at four hundred dollars.

It's the exact same thing.

The target on a breakout from here.

There's really not a lot on the way up here that you can base a whole lot on.

So you can either do.

An attempt to give back to the highs.

Or you can do.

An extension Ferb extension.

One point six one eight is closer to the eight cents level, it's not quite to the highs, but that

is another route that you could take a look at.

But in general, if you're trading in the weekly chart, you're looking for bigger, longer term moves.

So a little bit different in that scenario.

In the next video, we're going to take a look at Cardno, a cryptocurrency that seems to be moving

up the charts as far as popularity is concerned.

And we will find several setups we're taking in that market.