TRON the new Bitcoin of China – Tron TRX Cryptocurrency Strategy
Cryptocurrency Tron can become the new Bitcoin of China, and our Tron TRX cryptocurrency strategy will teach you how to buy and sell TRX. This step-by-step guide to cryptocurrency trading will help you swing trade any coins with the help of the Parabolic SAR indicator.
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Tron TRX was once a top 10 cryptocurrency and still has the potential to become one of the most valuable digital coins. For the long-term growth of Tron, China plays an important role. Cryptocurrency Tron has a lot of popularity in China because of its founder Justin Sun, which is on the Forbes 30 under 30 lists. There are two significant reasons why we believe TRX coins have a tremendous potential in the future to exponentially increase.
Firstly, China is a big market for the Tron blockchain because it has a considerable population of content creators that potentially can use Tron TRX.
At the same time, cryptocurrency Tron aligns with China’s best interests because Tron’s CEO is Chinese. Secondly, Tron’s CEO, Justin Sun is a protégé of Jack Ma, the richest man in China and the founder and CEO of Alibaba. If Alibaba, the world’s biggest e-commerce company ever decides to adopt digital coins, then Tron TRX is a serious candidate to be the cryptocurrency of choice.
These are the main reasons why Tron is the Bitcoin of China!
Now… Moving forward, we’re going to discuss what is Tron TRX and how to buy Tron with our Tron TRX cryptocurrency strategy.
What is Tron TRX?
Tron TRX is a blockchain-based decentralized protocol, which is designed to build a free content entertainment system. The Tron protocol will allow its users to publish, store and own data freely, and it can also decide how to distribute that content.
The primary goal of Tron blockchain is to make entertainment available to everyone around the world.
Cryptocurrency Tron has a market capital of over $6 billion, and it’s currently the 9th most valuable digital coin being among the world’s top 10 cryptocurrencies.
Next, we’re going to discuss what technical indicator we need to make money trading cryptocurrencies. The only indicator we need to trade Tron TRX is the Parabolic SAR indicator.
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How to Use the Parabolic SAR to Trade Tron (TRX)
In order to better understand the Parabolic SAR indicator we need to divide it into two parts:
- The Parabolic part
- And the SAR part
The parabola is an important concept in abstract mathematics. Luckily, you don’t have to be a math whiz to understand and to use the Parabolic SAR indicator.
In fact, even though the methods of determining a parabolic curve are complex, it’s very easy to use Parabolic SAR. The SAR part stands for Stop and Reverse although some people refer to it as Support and Resistance.
The parabolic curve creates a line on the cryptocurrency chart working much like support and resistance while the parabolic line is only above or below the Tron TRX price. The Parabolic SAR can tell you when to buy Tron as well as it can tell you when to cover your trade. In essence, the Parabolic SAR is a bullish/bearish indicator:
- When Tron TRX price trades below the Parabolic SAR then we’re moving in a bearish trend.
- If Tron price trades above the Parabolic SAR then we’re moving in a bullish trend.
Note* The Parabolic SAR gives the best performance in trading markets. In ranging markets, it produces a lot of whipsaws or false breakouts.
Firstly, it’s important to establish the dominant market trend. This can be done in various ways, but the simplest method is to look at your chart and if you see the Tron TRX price rising from the left bottom of the screen to the top right side of the screen then we’re moving in an upward trend.
Now, before we go any further, we always recommend taking a piece of paper and a pen and note down the rules of the Tron TRX cryptocurrency strategy. For this demonstration, we’re going to look at the buy-side.
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 the 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.
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 to the moon, but you get the point, a bullish trend is about to start.
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.
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.
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.
Conclusion – Cryptocurrency Tron
The Parabolic SAR indicator has a unique ability to react to the changing market conditions, and it can remove all human emotion to allow you to become a disciplined trader. As you become more familiarized with our Tron TRX cryptocurrency strategy, you’ll find the SAR indicator performs quite well in a trading market.
You might want to keep your TRX tokens if you believe this project can create a platform for the entertainment industry by using the blockchain technology.
Thank you for reading!
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