DYDX and the value area
アップデート済
WHAT IS THE VALUE AREA?
The value area in trading is a range of prices where the majority of trading activity occurred during a specific period, typically during a trading session. It is used in market profile analysis to identify areas of fair value and potential areas of support and resistance. The value area is often represented by a bell-shaped curve, with the majority of trading activity concentrated around the point of equilibrium or fair value. This information can be used by traders to inform their trading decisions, such as setting stop-loss and take-profit levels or determining where to enter or exit a trade.
On the DYDX price chart a big resistance is visible.
To anaylse history on the DYDX chart, we could say first that every topping is happening,
when the RSI is in the level 70 area.
$2 Area is the highest volume value area, and the most possible point at the moment, where the price can reverse from.
If the price could break above the mentioned resistance, the next possible point where it is smart to place bets is the $2.7 area.
RISK-REWARD
By the Risk and the Reward standpoint, this trade is not recommended, only from the higher zone, where the price exits the value area.
To trade this setup the safest way possible, it is recommended to wait for the price to get back to the value area and start shorting.
IMPORTANT
Remember:
The FED is still hiking rates, and most of the times it causes a crash on the market, when it is about to end.
Investing long term has the highest return potential, when the hiking cycle is over.
The fundamentals still not looking great and the crypto market is still speculative, so never FOMO into a trade.
I am so grateful for the support and engagement of my readers. Thank you for taking the time to read my analysis and for providing valuable feedback and insights. Your support means a lot to me and it's an honor to be able to share my knowledge and experience with you. I am constantly inspired by the community on TradingView and I look forward to continuing to learn and grow together. Thank you again for your support and for making this journey so enjoyable!
Have a profitable 2023!
The value area in trading is a range of prices where the majority of trading activity occurred during a specific period, typically during a trading session. It is used in market profile analysis to identify areas of fair value and potential areas of support and resistance. The value area is often represented by a bell-shaped curve, with the majority of trading activity concentrated around the point of equilibrium or fair value. This information can be used by traders to inform their trading decisions, such as setting stop-loss and take-profit levels or determining where to enter or exit a trade.
On the DYDX price chart a big resistance is visible.
To anaylse history on the DYDX chart, we could say first that every topping is happening,
when the RSI is in the level 70 area.
$2 Area is the highest volume value area, and the most possible point at the moment, where the price can reverse from.
If the price could break above the mentioned resistance, the next possible point where it is smart to place bets is the $2.7 area.
RISK-REWARD
By the Risk and the Reward standpoint, this trade is not recommended, only from the higher zone, where the price exits the value area.
To trade this setup the safest way possible, it is recommended to wait for the price to get back to the value area and start shorting.
IMPORTANT
Remember:
The FED is still hiking rates, and most of the times it causes a crash on the market, when it is about to end.
Investing long term has the highest return potential, when the hiking cycle is over.
The fundamentals still not looking great and the crypto market is still speculative, so never FOMO into a trade.
I am so grateful for the support and engagement of my readers. Thank you for taking the time to read my analysis and for providing valuable feedback and insights. Your support means a lot to me and it's an honor to be able to share my knowledge and experience with you. I am constantly inspired by the community on TradingView and I look forward to continuing to learn and grow together. Thank you again for your support and for making this journey so enjoyable!
Have a profitable 2023!
ノート
The safest technical way to enter a short tradeノート
Trend resistance should be in vision to determine enter/exits ノート
As soon as the trend resistance becomes support, the trade becomes invalid
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