DOGE → Hitting The Bottom and About to Rocket Past $0.10?
Updated
Doge pulled back 30% from its recent high just above $0.10, leaving the bulls to wonder if we're continuing to the downside or putting in new highs. Is this the time to enter a long trade?
How do we trade this? 🤔
The answer is yes! We have several market indicators that point to a 1:2 Risk/Reward trade right here at this moment. We have three pushes down in our pullback from $0.10, 3 failed attempts to make lower lows in a trading range, and an RSI that is low and above the Moving Average; Bitcoin as a market indicator is showing signs of making another attempt toward the upside as well. We're 10% away from the Support zone with plenty of runway before hitting the previous high at $0.10. These are optimal conditions for a long trade.
💡 Trade Idea 💡
Long Entry: $0.0805
🟥 Stop Loss: $0.0705
✅ Take Profit #1: $0.0905
✅ Take Profit #2: $0.1050
⚖️ Risk/Reward Ratio: 1:2
🔑 Key Takeaways 🔑
1. Three pushes down in the pullback from $0.10
2. Three failed attempts to break a new low in the trading range
3. 10% away from the Support Zone and 34% away from the previous high of $0.10
4. RSI at 43.00 and above the moving average which are ideal conditions for a long
5. Bitcoin showing signs of a move toward the previous high
💰 Trading Tip 💰
Trends typically have 3 pushes in either direction before a trend change begins. Along with other market indicators, creates a situation to look for counter-trend trades because the probability of profit is high enough.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
Like 👍 and Follow to learn more about:
1. Reading Price Action
2. Chart Analysis
3. Trade Management
4. Trading Psychology
How do we trade this? 🤔
The answer is yes! We have several market indicators that point to a 1:2 Risk/Reward trade right here at this moment. We have three pushes down in our pullback from $0.10, 3 failed attempts to make lower lows in a trading range, and an RSI that is low and above the Moving Average; Bitcoin as a market indicator is showing signs of making another attempt toward the upside as well. We're 10% away from the Support zone with plenty of runway before hitting the previous high at $0.10. These are optimal conditions for a long trade.
💡 Trade Idea 💡
Long Entry: $0.0805
🟥 Stop Loss: $0.0705
✅ Take Profit #1: $0.0905
✅ Take Profit #2: $0.1050
⚖️ Risk/Reward Ratio: 1:2
🔑 Key Takeaways 🔑
1. Three pushes down in the pullback from $0.10
2. Three failed attempts to break a new low in the trading range
3. 10% away from the Support Zone and 34% away from the previous high of $0.10
4. RSI at 43.00 and above the moving average which are ideal conditions for a long
5. Bitcoin showing signs of a move toward the previous high
💰 Trading Tip 💰
Trends typically have 3 pushes in either direction before a trend change begins. Along with other market indicators, creates a situation to look for counter-trend trades because the probability of profit is high enough.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
Like 👍 and Follow to learn more about:
1. Reading Price Action
2. Chart Analysis
3. Trade Management
4. Trading Psychology
Note
Zooming into the 4HR chart, Doge gave us our buy bar! Following that buy bar was a major bull candle taking us back to $0.09. We're now back at the previous trading range, so it's absolutely reasonable to take half profits here, move your stop loss up to your entry price, then swing the latter half of the position to the second take profit at $0.10.
Note
Doge has made a complete retrace of its massive 15% Daily bull candle. We now sit on the Daily 200EMA, but this will be the 4th time we've tested this support. If you took half profits at 1:1 Risk/Reward from the last update, you should have almost moved your stop loss up to your entry price. That would mean you've been stopped out and taken home a nice profit.
Now we need to wait for the next move. Will Doge break below and close under the 200EMA? Or bounce again to new highs? Wait for the candles to close on either side of the 200EMA before entering!
Trade active
Doge gave us a nice bull close on the 4HR candle at $0.0855, a strong bounce off of the 4HR 30EMA and the Daily 200EMA after three pushes resulting in strong buy bars. Long entry with a 1:2 Risk/Reward Ratio, taking half profit at 1:1 Risk/Reward. Once the first take profit is hit, the stop loss will be moved up to the entry price:
Long Entry: $0.08370
🟥 Stop Loss: $0.07237
✅ Take Profit #1: $0.0885
✅ Take Profit #2: $0.9641
⚖️ Risk/Reward Ratio: 1:2
Note
Doge continues to bounce between the Daily 200EMA and 30EMA. We're currently in a descending wedge from a bull run, which is technically a pullback which has the probability to result in a move to the upside. There are not warning signs just yet of the price closing and holding below the 200EMA, so we should hold our position until our premises are invalidated.
Trade active
Took half profits at $0.08741 on the 5m chart we approached the first target of $0.8850. This trade is now permanently profitable as the stop loss has been moved up to the entry price. Let's see if Doge will remain above the 30EMA ribbon or stop us out.
I am skeptical that Bitcoin will breach new highs during this run and if it falls, could take Doge down with it. However, if Bitcoin does reach new highs, that could send the market up for a strong run.
Trade active
The Doge trade presses on as we meander sideways and hold support above the 30EMA. We need to break the $0.09100 price point and make a dash for our target of $0.09641. At this point, I'm not overly confident the second price target will be hit. If we get another wind to the upside from Bitcoin there's a chance it will take the alt coin market for another ride and maybe Doge will go with it!
Trade closed: target reached
Target reached! With the crypto market burning hot, we achieved the final push beyond the resistance we needed to conclude this trade. I caution longing at this stage, we need to let this play out.
-Joe Dean
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