MATICUSD vs VARAUSD - Correlation Review

13 ม.ค.

As of today VARA is very close to being perfectly correlated with MATIC finally. It took a lot of bouncing around within the range but after Polygon posted losses and VARA's posted gains it is very close to exactly correlated. This IS bullish by the way for both assets because both assets share one common theme and that is that those very large order blocks have moved up, for VARA to approximately $.018 from $.0158 so a massive gain in support. Not only that but the order wall that was at $0.02 has dissolved. Short term these things don't mean much but long term as whales continue to accumulate coin volatility will be the name of the game. There will be a lot of movement so the only thing I can tell you is trade the range, don't do anything else. Shorting at the bottom of a range is just a bad idea, unless you are just desparate to get out and need the money for food, I would say go long at the bottom, short TP1 at least at one of the resistance areas. If you need help finding resistance lines, please download Bookmap or a similar order flow application, it is the only way you can see order walls. And, while price action doesn't always bounce off of order walls, (sometimes they collapse) most of the time they are of some use. Now, a TP1 is not a massive percentage of your coin, that is an insurance short, insurance because you want to have some of your coins liquidated in case the price pulls back, because as you are aware most of the time there is some pull back, no always but most of the time, that is until it doesn't which is why I said TP1 is not a large share of the coin. You hang on to TP2, 3, 4, 5 , 6, however many TP orders you want just in case the price moons. How many times have you sold a coin only for it to go way up and you FOMO in? Yah, exactly. So, insurance my friends, always use insurance which in this case is your TP levels. Look at it this way, if you TP1, and the price goes up you still have 80-90% of your coin. Cut your losses on that one, but look for TP2. If it still goes up you still have a large amount of coin. I hope this helps.

I am not a financial advisor.

13 ม.ค.

บันทึก

TP = Take Profit, 1 is a small percentage of coin, you have to figure out how much and how many TP levels you want to take. I personally will have 25 TP levels because I have a lot of coin and also I do not want to sell it cheap. I am ok with selling a little bit cheap but I want the money at the top and since I cannot predict the future I'm not setting any orders to fill, instead I am looking at order flow each day and if I see a level I'll place my TP1 there and wait. If and when it fills I'll look for a TP2 or if it pulls back to my SW1 level I will already have my buy order set to swing back in with the money I made from TP1 just above that support level. It isn't complicated really but you need an order flow application or you will be trading pretty blindly.