Tron TRX Cryptocurrency Strategy
This cryptocurrency trading strategy is very easy to use because the Parabolic SAR indicator can give you the capacity to forecast the price of cryptocurrency Tron.
Let’s now take a look at Tron chart and observe how the blue dotted line which forms our dynamic support and resistance lines can help us trade Tron TRX.
Step #1: Determine the dominant trend on higher time frames
The first thing we need to establish is the direction of the dominant trend. For this purpose, we’re going to use multiple time frame analysis.
For example, if we intend to trade on the lower time frame 5-minute chart or 15-minute chart, then use the higher time frame 4h chart to determine the trend.
Tron coin price
If you trade the daily time frame, use the weekly and monthly charts to establish to Tron TRX trend.
Now, let’s see what trading condition, we need for the Parabolic SAR to satisfy.
Step #2: Wait for the Parabolic SAR indicator to show up below the Cryptocurrency Tron price
The first idea behind using the Parabolic SAR indicator is to wait for the change in the trend direction to be signaled by this mechanical indicator rather than trying to pick tops and bottoms.
When the Parabolic SAR shows below the Tron coin price, we know that’s the first sign that Tron is going to the moon. Well, not quite really to the moon, but you get the point, a bullish trend is about to start.
Tron coin price
This is not enough for us to get interested in buying cryptocurrency Tron, which brings us to the next rule of our crypto strategy. Now, let’s see how to buy Tron TRX:
Step #3: Wait for Tron coin price to break above the last downward Parabolic curve
Let’s make things easier to explain. The Parabolic SAR will develop a curve above and below Tron price.
Obviously, in our trade example, we assume that right now the Parabolic SAR is developing the curve below the price. This means that the previous curve must have been above TRX price and thus a downward Parabolic curve was formed.
All you have to do is to draw a line from the starting point of that parabolic curve and wait for Tron price to break above it.
There is one more condition that needs to be fulfilled before we buy cryptocurrency Tron. Namely, for a valid breakout, we need to price to also close above this resistance line we draw.
This is somewhat an unorthodox trading approach, but it’s what makes this cryptocurrency strategy so successful.
The next important thing we need to establish for our Tron cryptocurrency strategy is where to place our protective stop loss.
See below …
Step #4: Place protective Stop Loss below the Parabolic SAR curve
Our cryptocurrency method for stop losses is quite simple. We hide our protective stop loss below the Parabolic SAR curve. Usually, this should also be a low swing level.
Without an excellent place to hide your stop loss, it’s almost a guarantee that your risk to reward ratio will be minimal.
This is not the case when implementing our Parabolic SAR strategy.
Cryptocurrency strategy Tron
Last but not least, we also need to define a take profit cryptocurrency strategy. See below …
Step #5: Take Profit when we touch the Parabolic SAR support line
When Tron coin price touches the Parabolic SAR support line, we cash out our profits and go to the bank:). The majority of the time, after TRX price touches the Parabolic SAR, that’s the first sign that the market is about to reverse to the downside.
Tron cryptocurrenct strategy
Note** the above was an example of a BUY trade using the Tron cryptocurrency trading strategy. Use the same rules for a SELL trade – but in reverse. In the figure below, you can see an actual SELL trade example.