DASH -ing through the low, in a one bull open sleigh
Updated
I entered a bullish trade on Dash. I'm still looking forward to the overall crypto market to reach more lows, but the DASH/USD chart checked a few boxes in the 'trade-it' column.
1) I like to look for long trades when RSI has a double bottom in the relatively extreme 20-30 range (conversely, exit trades in the 70-80 range). This becomes more attractive to me when there is either divergence, or the second low in price is drastic relative to the second RSI low. In this case, I'm looking at RSI 21 on May 23 at $338 DASHUSD. Then RSI 22 on May 28 at $285. It qualifies to grab my attention.
2) $290 is a 50% fibonacci retracement based on $732.50 on Feb 19, $284.50 on April 1, and $514 on May 6.
3) The $280 - $290 zone is a simple support zone with touches around April 6 and April 4 and a few more throughout 2017.
4) The price of DASH is just outside the bottom of the bollinger bands . Which can help with any snapback similar to the action from May 12.
5) Stochastics, RSI , and MACD are all appearing overextended....which is certainly not information to trade on alone, as they can technically stay oversold as long as they want... but considering the other points, I can see those adding some spring to any support that may come in at this location.
Buy $285
Stop $250
Target 1: $338 (1:1.5)
Target 2: $373 (1:2.5)
This is just an idea, and you can obviously tailor your own trade with the idea. For a little more risk, one could use Target 2 as Target 1, and use the 100MA as Target 2.
Also of note, the last two time RSI was at this level on a daily chart, DASH had relativelylarge snapback rallies.
Do you agree with this setup? Did you use different price levels? Feel free to comment what you are seeing. Thanks for viewing.
-Travis
JMJ - UIOGD
1) I like to look for long trades when RSI has a double bottom in the relatively extreme 20-30 range (conversely, exit trades in the 70-80 range). This becomes more attractive to me when there is either divergence, or the second low in price is drastic relative to the second RSI low. In this case, I'm looking at RSI 21 on May 23 at $338 DASHUSD. Then RSI 22 on May 28 at $285. It qualifies to grab my attention.
2) $290 is a 50% fibonacci retracement based on $732.50 on Feb 19, $284.50 on April 1, and $514 on May 6.
3) The $280 - $290 zone is a simple support zone with touches around April 6 and April 4 and a few more throughout 2017.
4) The price of DASH is just outside the bottom of the bollinger bands . Which can help with any snapback similar to the action from May 12.
5) Stochastics, RSI , and MACD are all appearing overextended....which is certainly not information to trade on alone, as they can technically stay oversold as long as they want... but considering the other points, I can see those adding some spring to any support that may come in at this location.
Buy $285
Stop $250
Target 1: $338 (1:1.5)
Target 2: $373 (1:2.5)
This is just an idea, and you can obviously tailor your own trade with the idea. For a little more risk, one could use Target 2 as Target 1, and use the 100MA as Target 2.
Also of note, the last two time RSI was at this level on a daily chart, DASH had relativelylarge snapback rallies.
Do you agree with this setup? Did you use different price levels? Feel free to comment what you are seeing. Thanks for viewing.
-Travis
JMJ - UIOGD
Trade active
This trade almost immediately went in favor of the long setup. It is currently at $315 , already up $30 (nearly 11%) since triggering this morning at $285. I am moving the stop from $250 to $278 to drastically reduce the risk.Trade active
I closed 25% of this position here at $306.the stop for the remaining position is $278.
target 1 for half of remaining position is still $338
Target 2 for half of remaining position is still $373
This is now a risk free trade. The worst that could happen is to break even. The best is to make 1.5R from the original trade.
Trade active
This trade is nearing Target 1.I am moving the stop up to $294.50.
Target 1 and Target 2 will remain.
This is now a winning trade. The worst that could happen is to make 0.4R.The best is to make 1.5R from original entry.
Note
also, i should note.... stochastics and RSI are really high on a hourly, 3-hr, 4-hr chart.... and i would not buy any stock/crypto if those were at such a level. with that, it is totally acceptable to close this trade (currently $334) all together and take the profit just short of target 1... as the probability of a very short term pull back is elevated with such indicators.Note
as stated in previous comment, "the probability of a very short term pull back is elevated with such indicators"... it then lost $20 from yesterday.this trade is still open, and the 0.4R - 1.5R are still where the profit will end.... though i actually will be somewhere in the middle, as i did unload a few coins at $334 yesterday.
Trade active
I see some divergence on the 1hr chart. So added the amount of DASH i sold at $334, just bought it at $310. I know the trade has kind of morphed, but i allow myself to trade within the trade if i can reduce risk and increase probability of increasing the R. stop is still 294.50. targets still $338 and $373.
Trade closed manually
As it turned out.... conditions for a bollinger band squeeze have come to fruition. The 'squeeze' just broke bearish....so I am closing this trade completely here. If it turns out to be a fake out and runs higher, it will without me. I won't hold a long position for something that just had a bollinger band squeeze bearish.
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