10.01.23

Today‘s crypto trading Review deals with a trade on the cryptocurrency Gala, which saw a big spike over the last few days and might even go higher. 

I was watching everything spike big and waited for one of the top gainers make an exhaustion move followed by a slightly bigger crack than it has seen on its rise. 

On the daily it was going straight up in the short term, but normally cryptocurrencies are not going up straight forever, they need to rest (take profits/cut losses). So it was running in some kind of resistance level, which is really hard to determine if the token is going ballistic like this. On the daily chart below you can see my resistance line and the recent price action. 

This for me seemed like a good price level to make a reverse, but not going right into it when it reached this level. As said before I needed a major crack before going Short. On the 15 minute chart below you can see it busting through the trendline and then reversing back under with a good price drop. 

Two bigger red candles were a good sign to grt a starter position for me. I went short ⅓ of the full position, risking a break of the shown high in the image above. It bounced from the bottom, but could not go higher from here. As it made its way down I added to my position. Which gives me an average price of about $0.46, right sböut where the resistance line is. 

I covered part of my position, of course not perfectly, but as long as I can profit on part of the move that is totally fine. In the below statement you can see my trade entry & exit prices. 

I am still short a small position for possible further dump, but not going to give back my gains. 

I hope this helps you to get an idea of my trades. I will in the coming days make another review about BitDAO ($BIT).

Have a good day!

Niklas

This is not financial advice. 
Feel free to visit my website @ niklasschomaker.com where I post these articles half a day earlier!