$DOGE formed a pennant
Updated
Hello traders! I haven't traded crypto in quite sometime until yesterday. I saw DOGE pumping really hard and did some investigation, after which I learned that WSB were pushing its price. I jumped in at $0.025 ran all the way to the top at $0.88 (at which time I was already sleeping) and sold today at about $0.60. It was very good profit but could have been way better had I paid more attention. it happens though. I also traded it intraday for some smaller profit after I had closed my position. So far it has lived up to the hype.
On the daily chart we can't see much more than a huge green candle with wicks on both sides, which represents well what we saw today, but only on the surface. Underneath, that candle we can see that a pennant formed on the 1hr chart. Now keep in mind patterns that form on lower time frames are weaker that the ones on higher time frames but if you are looking for a place to enter a quick trade or exit your position this pennant can give you some guidance. It is certainly better than a huge daily green candle. I also like to see that the highs and lows of the pennant find resistance and support on the fib levels.
MACD is curling down but that doesn't mean we are moving bearish. DOGE may just be taking a breather here and gathering energy for another run. RSI is still above the 50 level, which looks like support. Stoch is in overbought territory and the OBV line corroborates the accumulation of the pennant.
Now the bias is continuation of the previous trend, so this is slightly bullish. Slightly because we know it was caused by coordinated buys, but still something to be considered because people are still talking about continuing the rally. So if the pennant breaks to the upside you can buy when it crosses resistance with strong volume. Keep in mind there may be fake outs, specially on the hourly chart.
We could also see consolidation on sideways move which many times forms a channel after the pennant is complete.
Finally, the pennant can break to the downside, which I think could cause a quick selloff in this coin because it moved over 700% this week. The 14 ema is on the verge of crossing the 21 ema, which would not be good.
if you are in, don't be like me and keep your eyes on the chart.
Safe trades!
Share the love:
If you get anything out of this TA, please like the chart so it moves up and others can benefit from my work. A simple click on the like button goes a long ways.
Follow for more:
I have an outstanding winning rate (check my other charts). If you want the best entry/exits just follow me, you won't regret. Thanks a lot!
***The ideas shared here are my opinion, not financial advise to place trades. Please do your own research before buying/selling stocks***
On the daily chart we can't see much more than a huge green candle with wicks on both sides, which represents well what we saw today, but only on the surface. Underneath, that candle we can see that a pennant formed on the 1hr chart. Now keep in mind patterns that form on lower time frames are weaker that the ones on higher time frames but if you are looking for a place to enter a quick trade or exit your position this pennant can give you some guidance. It is certainly better than a huge daily green candle. I also like to see that the highs and lows of the pennant find resistance and support on the fib levels.
MACD is curling down but that doesn't mean we are moving bearish. DOGE may just be taking a breather here and gathering energy for another run. RSI is still above the 50 level, which looks like support. Stoch is in overbought territory and the OBV line corroborates the accumulation of the pennant.
Now the bias is continuation of the previous trend, so this is slightly bullish. Slightly because we know it was caused by coordinated buys, but still something to be considered because people are still talking about continuing the rally. So if the pennant breaks to the upside you can buy when it crosses resistance with strong volume. Keep in mind there may be fake outs, specially on the hourly chart.
We could also see consolidation on sideways move which many times forms a channel after the pennant is complete.
Finally, the pennant can break to the downside, which I think could cause a quick selloff in this coin because it moved over 700% this week. The 14 ema is on the verge of crossing the 21 ema, which would not be good.
if you are in, don't be like me and keep your eyes on the chart.
Safe trades!
Share the love:
If you get anything out of this TA, please like the chart so it moves up and others can benefit from my work. A simple click on the like button goes a long ways.
Follow for more:
I have an outstanding winning rate (check my other charts). If you want the best entry/exits just follow me, you won't regret. Thanks a lot!
***The ideas shared here are my opinion, not financial advise to place trades. Please do your own research before buying/selling stocks***
Note
Support of the 50ema and fib level. If it holds we could have a double bottom. If it doesn't hold this thing can go down hard:Note
Farewell DOGE:Note
Jumped in here:Trade closed manually
Closed for a medium loss (25% of my profit). Bought the bounce for a quick trade. Blinked for 10 minutes and was already in a loss. It sucks but it happens. Now to the next one!
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