Buying Digital Real Estate
StatsEdgeTrading
Welcome to Forex Market Monday, where I dive into cryptocurrency and traditional currency markets to set the stage for the trading week ahead. Mondays are all about preparation—setting alerts, placing orders, and letting the markets come to me. Here’s what I’m watching this week:
Cryptocurrency Highlights
Bitcoin: Bitcoin continues to consolidate after its strong rally. I’m holding onto my remaining position from the breakout near $52K, having taken profits just under $100K. If the current range resolves higher, I’ll consider adding back to my position.
Ethereum: Ethereum remains a laggard, struggling to gain traction. Its underperformance relative to Bitcoin keeps it off my buy list.
Solana: Solana is showing strength, breaking out of a cup-and-handle formation. It’s one of the few altcoins outperforming Bitcoin.
Decentraland (MANA): I took a small position in MANA after it broke a key resistance level at $0.36 and retested it successfully. My plan includes taking partial profits if it doubles and holding the rest for a long-term play
Dogecoin: The meme coin is on the move again, but I view its rally as a sign of froth in the market. It’s on my watchlist, but I remain cautious.
Traditional Currency Insights
Dollar Index (DXY): The DXY is nearing resistance after a strong rally. While it may stall or pull back here, repeated tests of resistance often lead to a breakout. I’ll be watching closely for any signs of continuation or reversal.
Gold: Gold has pulled back to a critical support zone near $2,500. If it holds, this could be an excellent opportunity for a long trade targeting all-time highs.
USD/JPY: The pair appears to be losing momentum, with a bearish engulfing candle on the daily chart. If last week’s low around ¥152 breaks, I’ll be looking to short this pair or go long on Yen futures.
Algorithmic Trading in Action
Hut 8 Mining (HUT): This cryptocurrency miner came through one of my algorithms as a buy at $24.50. I waited for confirmation, entering as the stock broke above the day’s high. My stop is set at $22.50, with the trade closely tied to Bitcoin’s price action.
Why I Use Algorithms
Algorithms form the foundation of my trading process, providing statistically backed setups that remove the guesswork. Here’s how it works:
Preparation: Algorithms generate trade ideas based on decades of backtested data.
Execution: Alerts notify me when specific conditions are met.
Discretion: I use my judgment to refine entries and exits, enhancing the system's output.