Thank you very much for responding. I am not a trader, but I am learning about the subject. From what you have shown, I understand that your projection is based on technical analysis. Is the indicator the SMC? What style? As I said, there are many things I do not understand, but my question is: how can the price suddenly move like it did today? With a 25% increase, that is, you need purchase volume, how do you anticipate that? I was looking at the orders in the book shown on Binance. And what you see are blocks of supply and demand, however, that does not strongly indicate to me that the price reacts to those areas. That is, I don't understand. Does the price move for something other than supply and demand? Let me explain, I'm just asking. I just want to learn. Otherwise, I agree with your analysis and projections. But I still have a lot to learn. Can you explain it to me? And sorry.
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No indicator used there, it was just what I thought might happen. I don't use indicators as you can't trust them completely.
$HIVE is quite an illiquid asset and a slightly bigger order can create a spike like that. It can trigger stops and create a cascade, which pushes price higher or lower, quite a lot. As you can see, price has almost retraced since then, as there was not enough buying pressure to hold price at that level.
You don't as no one knows where price is going to go, but you have to know how to react in each situation, this is why we have 3 scenarios most of the times. I drew that on my chart as I was hoping to get that, but you need to know your levels and know when to enter, when you get your confirmation and when your idea is invalidated.
Congrats for taking interest in trading and good luck with learning. It requires a lot of time spent in front of the screen, learning, testing, backtesting, but you'll get there.
Thank you very much for your response.
I understand that an indicator does not determine the projection; it is information or arguments that show you the big picture. However, I ask you this because I see in your charts that there are FVG and liquidity zones, which you extract from an indicator.
I also realize that there is little liquidity in hive, and your response confirms that. It also means that it is exposed to this volatility; the slightest increase in volume will cause the price to move.
On the other hand, thank you for emphasizing the importance of having a plan. I am learning that this is fundamental. In fact, I do not trade because I do not have a plan, but I am enjoying the dynamics of the markets, reading the movements from an analytical, mathematical, and statistical perspective, and building a strategy and a plan.
Thank you very much for your support and optimism. Thank you very much. God bless you.
I don't, I draw those myself. If you need an indicator to draw FVGs on your chart, then you're not a trader :)
You're welcome and good luck with your studies. It takes time and testing, to get a profitable strategy, but worth the work that goes into it.
God bless you too!
Excellent, thank you very much.