Decred has been doing very well over the past few weeks, but we see ourselves in a price correction. We hope for support around the 20 period moving average which we are just above right now. Over the next 24 to 48 hours we hope the support holds and we continue the bullish trend. the Ac oscillator is still showing a heavy bearish trend, so if support does hold we will need to see the oscillator start moving back to the Zero line and wait for it to pass zero, then we will see a new continuation to the bullish trend.
If support at the 20 period moving average fails, the next line of support comes at 1102160 SATS for possible rebound.
If support at the 20 period moving average fails, the next line of support comes at 1102160 SATS for possible rebound.
Note
Decred looks to be breaking the channel and holding support at the 20 period moving average, but the trend is still very low with Volume starting to taper off. Only if volume increases and I see a closing candle above resistance around 1282603 sat line will i consider an entry, then i need to see the AC oscillator above zero which it is still far off to confirm a good continuation of this trend.
Trade active
Time to make a trade and enter into Decred. We found some support on the 20 period moving average, the on balance volume is still positive and we are above the last point of resistance. BB% has turned positive as well. Since we are still above the 20 period moving average and have some good green candles moving in, I am entering here with the plan to continue adding to the bag as long as the trend continues. I entered around 0.01337001 sats, though i still set a stop loss. I tend to do a loss ratio of 1:2 when trading so my stop loss now is around 0.01247013. I tend to play with 5% of my BTC stack worth.
Now the plan here is to see where this trade goes. If the trend continues up it should hit the top bollinger band then come back down. On the decline, if we find support around the 20 period moving average then I will continue to buy more and dollar cost average my way up to continue adding to the overall positive trend.
Trade closed: stop reached
I set my stop to short as it closed out but the trend rebounded and still above the 20 period moving average. I may look for another buy in later and reconsider my stop loss.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.