A few days ago I talked about Binance coin's Burn to keep inflation under control and to create a progressive scarcity of the token: in the white paper they indicate that half of the tokens will be burned.
Today, again with the example of Binance coin, let's see how to take out the most of Burn in trading by following a fundamental analysis.
In the screen below we see a burn that happened on January 16, 2019.
The announcement date was for the 16th, but the market gave signals of movement starting from the 15th to the 23rd.
The maximum was reached at 10 am on the 16th.
Following the rules of technical analysis, you enter the market with the green arrow at 16303 and then exit on the red arrow at 16910 with a take profit of 3.7%. Not bad as the market was lateralizing.
Another example in the following screen:
In this case the pump was more gradual and distributed over the course of the day; to find out when the burn occurs, consult the Binance blog, where it is announced the same day.
Clearly these variables, being related to a fundamental analysis study, cannot have a rigorous feedback on technical analysis.
In this case, the profit from this burn scenario could be 6.7%
