Seeking enter point in altcoin market? DOGE's answer!
It is all about timing in altcoin trading, to maximize our profits, we have to 1) find the right coin; 2) find the right time. To me, the latter is even harder because the market has provided us plenty of opportunities, it is not easy, but not that hard to find a promising altcoin, however, timing is very difficult to determine as we might suffer longer loss or loss of opportunity cost if picking up the wrong timing. More importantly, in a market with so much fluctuation, nothing is more easily lost than PATIENCE. So, even if we find the right coin, we might still sell too early to secure expected profits.
It is absolutely very difficult, nearly impossible, to predict the price peak of a uptrend of a coin, however, it is possible to find a better, if not best, timing to start our long position to ambush the future uptrend. A better timing could offer us: 1) shorter time waiting; 2) lower threshold level of patience; 3) smaller opportunity cost.
In the long run (daily chart for altcoin is already very macro-scope), you have to take volume very seriously. Sudden increment in volume should always be flagged because it is a very important forecast indicator. By using OBV and OBV/PRICE, we could follow the impulse and buy when it happens.
However, even if a huge winner like DOGE, the waiting is no less devastating and it is no so easy to take all the profit because early selling is quite possible. So I recommend multi confirmation, even if the OBV sometimes shows great potential, consolidation never ends unless it is broken with volume, which also provides room for OBV to rise significantly.
Investors may well sometime frightened by a sudden impulse in price and choose not to chase, but we must analyze whether the breakthrough is solid. In the example of DOGE, you still have the chance to open your position at 30 satoshi in 4 days. Never buy in with panic, re-check the OBV, be really greedy when it wakes up to avoid buying too early.
It is absolutely very difficult, nearly impossible, to predict the price peak of a uptrend of a coin, however, it is possible to find a better, if not best, timing to start our long position to ambush the future uptrend. A better timing could offer us: 1) shorter time waiting; 2) lower threshold level of patience; 3) smaller opportunity cost.
In the long run (daily chart for altcoin is already very macro-scope), you have to take volume very seriously. Sudden increment in volume should always be flagged because it is a very important forecast indicator. By using OBV and OBV/PRICE, we could follow the impulse and buy when it happens.
However, even if a huge winner like DOGE, the waiting is no less devastating and it is no so easy to take all the profit because early selling is quite possible. So I recommend multi confirmation, even if the OBV sometimes shows great potential, consolidation never ends unless it is broken with volume, which also provides room for OBV to rise significantly.
Investors may well sometime frightened by a sudden impulse in price and choose not to chase, but we must analyze whether the breakthrough is solid. In the example of DOGE, you still have the chance to open your position at 30 satoshi in 4 days. Never buy in with panic, re-check the OBV, be really greedy when it wakes up to avoid buying too early.
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