Monday Market Recap With GoonTrades (MMR:7 1/18/21)

MMR #6 Recap

The overall market has now shaken off the ~20% market drawdown, and many ALTS have continued to grind higher. Last week, I had a couple of trades miss and a couple hit; overall, it was a red week due to bad trade management. 

Last week, I cut one of my winning trades too early instead of following my strategy. To best capitalize on these volatile and parabolic markets, I focus on pyramiding or averaging up into my positions. This allows me to continue adjusting risk accordingly while simultaneously growing my position size in the chance of catching an excellent move.

This trade on BNB displays a perfect example, and it even gave me multiple re-position areas (places to add). 

While hindsight is always 20-20, this trade was a solid entry; one taken with half size. From here, I should have been looking for my first take profit and a position to add more to my line. I ended up taking profit at my first target as I had to deal with some personal matters, but looking at the current chart, the mistake I made is blatant.

Overall, seeing this trade pan out helps build my confidence to trust and follow my system. While I am still unable to prove its expectancy, I'm not going to fix what isn't broken. 😊

Enough with the reflection.

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King BTC

Currently, on the 8hr and higher time frames, BTC is consolidating into a wedge. These patterns have very favorable odds of breaking to an upside, especially with BTC in a bull market. An entry I would look for on BTC is on the tests of the primary trendline. A more specific entry I am looking for is a breakout of the primary downtrend and a bullish re-test around the 38K level.

Overall I am not looking for entries into resistance or in "no man's land," my key here is sticking to trades that are high conviction, ones that appear to have a + EV. I think the default scenario here for BTC is that we range in this wedge until there is a breakout, the odds favor a flight to the upside, but pick efficient entires to mitigate overall risk.

BSCs' Gold: BNB

BNB has seen a rapid recovery as it continues to trade in price discovery. Currently, BNB is offering an entry off of the Daily level at 44. As for the risk: reward, I have a wide stop on this trade to account for the elevated volatility. The W support at 41.5 also looks to be one of the most significant support levels at writing.

Overall, I continue to maintain my bullish posture on BNB, as it offers an entry yet again. As for the profit target, if I took this trade, I would set my first TP just shy of 50.

ALT SZN Moon Bag: OMG

OMG is a layer-2-scaling solution for ETH, which is poised to be a massive beneficiary of ETH's scaling issues; enough with that, this is a market recap, not a project review. 

I have been accumulating OMG in this current bull-flag/wedge formation. The perfect entry on OMG was off the M level at 2.5, so I would not recommend buying into resistance.

As for adding to this position, I want to see my initial thesis validated, a breakout of the bull flag. If and when the downtrend breaks, I will be looking for an entry on the breakout's bullish re-test in confluence of critical support.

Dose of BSC: CAKE

CAKE has also continued to grind higher after its muted sell-off into support. This token remains near the top of my bull-list for many reasons, both fundamentally and technically. As for an entry on CAKE, a re-test of previous pivot highs or a bullish re-test of the W level at .60 could permit an entry. Overall, this name offers unrivaled yields at .5% daily, and the team continues to provide innovation to the BSC. If that's not enough of an indication, the chart doesn't lie either, printing a very bullish advance. 

On a side note, I am currently debating charting more BSC tokens. I would not be opposed to doing some "fun" TA on well-established BSC names such as BIFI, DRUGs, FRY, ETC. For those who wish to see this, please give me feedback on my Twitter, and I will try to include it in the following release.

Bonus Chart: SNX

DeFi has continued to heat up with many "Blue-Chips" surpassing all-time highs (ATH's) set in mid-August. I don't see this trend cooling-off any-time soon as De-Fi continues to push the use-cases of blockchain and decentralized technology.

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So why SNX?

This name is currently in one of the most prevalent patterns I have seen during this bull market. It has broken out and re-tested its primary bull-flag and is now forming a secondary flag. My entry was textbook, a breakout, and a re-test of the original flag. I have continued to add to this position but have my risk well defined; a break below the previous pivot and I will trim my position. Currently, I am very bullish on this name as a proxy to De-Fi as a whole. 

Pulse of the Market

Money is beginning to flow into lots of ALTS as we see 30-50% rallies in names such as CRV, ADA, LINK, OMG, and SUSHI. If BTC continues to consolidate, I believe we continue to see this extended ALT strength period until BTC breaks into its next leg higher.

Overall the markets have corrected their bullish posture, shaking off last week's drawdown.

Be sure to check out the next release of this weekly series on 1/25/21. I would greatly appreciate all and any feedback to continue improving this content and my trading abilities.

Feel free to reach out on Twitter!

For those looking to get started trading, here are my referral links to exchanges I prefer (You will also get a 5% discount on trading fees):

FTX

Binance

It is still crucial that individuals make financial decisions based on their behalf or consult a professional financial advisor at the end of the day. None of this content is financial advice.

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