the process that leads to a trade

first and foremost I am looking for a low risk entry spot-anything else is secondary

to avoid general risk, there is a fundamental trade selection for any object that makes it to the portfolio of instruments i will be trading

this is a lengthy process of an analysis that has over a hundred steps of qualifications to ensure a low risk of the instrument behaving in a risky manner to the short to mid term trader

the following is my last trade i made (not posted due to its liquidity= it is illegal to have a trade recommendation posted where the purchase of members could beneficial move the instrument in my trading favor and we have traders on PPT who trade size)

There is also a lengthy process in regards to inter market relationships and portfolio risk that I am skipping here but in short i have a larger position long in BTC, shorted BTC for insurance on the recent risk I pointed out:

and the following crypto trade was in alignment of this overall portfolio and insurance position I was in

In addition is was a fairly new candidate to the portfolio and i was strongly familiar with the personality of the trading vehicle to intensive back and forward testing i had just concluded a few months prior

In this frame work I will now walk through a few steps on how the trade came about

I quickly made a review of the project:

About SuperVerse

The SuperVerse native blockchain is custom-tailored for gaming with lightning-fast, low-cost transactions. By being a Super holder, members can govern over existing on-chain product fees, unlock exclusive events, and earn custom gaming rewards across their gaming partner ecosystem.

What is SuperVerse?

SuperVerse represents a multifaceted ecosystem within the cryptocurrency and blockchain domain, primarily focusing on the gaming industry. At its core, it operates on a native blockchain that is specifically designed to cater to the needs of gamers, offering fast and cost-efficient transactions. This blockchain serves as the foundation for a platform and marketplace that facilitates the issuance and trading of non-fungible tokens (NFTs), allowing users to acquire unique digital assets within the gaming universe.

The ecosystem is powered by the $SUPER token, an ERC20 token, which plays a crucial role in the platform's operations. Token holders are not just passive participants; they are given governance rights through a decentralized autonomous organization (DAO) structure. This governance model empowers them to have a say in key decisions, including adjustments to on-chain product fees. Additionally, the transparency report for tokenomics and various guides provided, such as the BSC migration guide, DAO staking guide, and NFT boosts recalibration methodology, ensure that users are well-informed and can navigate the ecosystem effectively.

Staking $SUPER tokens unlocks several benefits for users, including the ability to earn rewards, participate in exclusive events, and access custom gaming rewards across a network of gaming partners. This staking mechanism not only incentivizes participation but also helps secure the network.

The SuperVerse's commitment to transparency and user empowerment is evident in its continuous updates and the availability of comprehensive documentation on its operations. By combining the elements of gaming, NFTs, and decentralized governance, SuperVerse is creating a unique ecosystem that offers gamers and crypto enthusiasts alike a new way to engage with digital assets and blockchain technology.

It's important for anyone interested in participating in the SuperVerse ecosystem or similar platforms to conduct thorough research and consider the inherent risks associated with investing in cryptocurrencies.

reviewed basic stats

and made sure the instrument wasn't in the spotlight-I am always trying to trade averages no extremes to have a low probability of surprises or otherwise outside the norm risk probabilities

my process is always one of a "top down" approach to not trade against the main directional grain but t=rather have trend on my side

and the weekly chart supported a long exposure:

what sprung my attention when screening through the portfolio candidates was the abnormality that the traders in SUPER, an obviously not common trader group since SUPER isn't Nvidia, were trading a principle violation, in this case using sideways moving averages as a valid support resistance tool

= an edge for my beauty principle tool and as such a possible edge worthwhile exploring:

(prep for this trade was three days ago-so the candle highlighted to the right yellow circle hadn't printed yet-it was the resulting entry point after the prep but the left yellow circle indicated this pattern to possibly returning

a closer look after removing the 40SMA from the chart revealed a good angle degree how price moves against the 20SMA and gets strongly rejected

and the upcoming scenario warranted for a similar wide angle approach as well

again you have to imagine the last two green bars not being printed yet

with a basic edge present I examined for further unusual trade behavior that would exploits SUPER trading behavior and found the following

wave patterns in SUPER came in day counts of 5 and this count was just finished=ripe for a reversal

with BTC facing the threat of a down move as an inter market overlay but a weekend to do so=doing it in "bounce steps", I had the right alignment on what I was looking for

additional entry favoring edges were a ZLR on the CCI :

the dominant underlying setup structure on the daily time frame was a "V" formation that already had completed its sideways move and now was working on the V-dip

=entry zone

the next important part is to evaluate if there is a trade there based on the numbers so I evaluated carefully where the highest probability for a limit order entry would be and as such examined trading fractals of the past:

you can make out on the zoomed out view of the daily chart that an edge dominant valley on the VWAP (something classical TA trades exactly the opposite and ignores)

provided for a perfect supply zone

and when zooming in a more detailed view brought levels to light:

with an entry point cleared:

the examination for the financing target point was necessary next and i could identify a isolation fractal as i call it where most likely an iceberg was sitting prior-look closely to the right the spike on the VWAP:

visually that looked already promising, so I went now for the obvious max stop point to see if a prosper risk reward ratio would be in place for a possible play:

expecting a hammer and only interested in an action reaction play on trade price behavior I do not expect more than a percent of risk but for trade r/r evaluation i always check for max drawdown which was in this case at the red line

I always present risk/ reward prep visually since it strengthens psychology if it is an actual play selected which looked like this:

and of course also measure the probabilities in numbers:

max risk = 3.74%

14.21% financing

=3.8 r/r

this is a prime setup and as such I placed the limit order and it got filled

even if you miss measured your limit order entry and would have taken a bar take out on sixty minutes as an late entry and i measure the level of how high i am willing to go in, late, in case of trouble=i always have a backup plan and a clear instruction on when I bail

you would have been just fine

in this case your r/r visually represented would have been:

3.14 r/r

and your financing profits would have been

11.75%

once in the trade you typically need to sustain two swing legs before financing =do not follow any intuition or give way to pain but follow your trading plan established prior to execution

the price behavior was as expected with a nice immediate bounce leg within the first 3 hours and a nice second leg starting right at the open of the next session marked in the vertical blue dotted line

on a 15 minute time frame the "harmony" of price behavior is even more visually represented:

The financing target was hit as such as well and a 14.21% profit on half of the position was achieved

right now we are trading here:

and you see on the STO pair indicator the potential of the rest 50% that's still exposed

but honestly I do not care and have trained myself to do so since all i focus on is this low risk entry spot on a trade and for the rest I check my ego at the door

While this is just a part of my prep to make this post not too lengthy and most might think-"oh my this is a lot of work on a trade" I personally have not found a way of what's portrayed in so many courses and told as myth stories by so many traders that you can come in blazing into the market like a cowboy and analyze the market in real time and take down some winning trades and string them up to consistency

fact s that only a very very very very small amount of traders are consistently taking profits out of the market for a long period of time and it must be devastating that even if you manage to a have a "lucky" period to enjoy riches to only give it all up at a later time

As such I might have chosen a work intensive way to participate as a market player and have not the story telling nor emotional rewarding gunslinger existence

but i pay my bills and than some