DOGE to $0.10!? A Long Setup for Maximum Profit!
Updated
DOGE continues to march upwards in its month-long bull run and has its eye on $0.10! If you're not long yet, prepare yourself for a long entry that could return up to 50% profit. To get there, we need to assess our current risk/reward ratio and probability of profit.
How do we trade this?
In a bull channel, our bias should be toward the upside since the probability of profit is greater. That doesn't mean we long right now at $0.08, our Risk/Reward would be about 1:1. The better long entry is at the bottom of the bull channel around $0.75, which allows for a 1:3 Risk/Reward ratio if we target just shy of $0.09.
Not only does the price need to fall to $0.075, but we also need a strong bull signal and confirmation bar for a long entry. The signal bar will have a tail 1/3 to 1/2 the total bar size with the price closing on or near its high. The confirmation bar should be a strong bull bar closing on or near its high. This would be the safest long entry because it secures a higher probability that the price will continue to respect the bull channel.
Key Points
1. Bull Channel, Probability of Profit is greater to the upside. Always in Long.
2. Price in Center of Channel, wait for a pullback to enter long.
3. Bitcoin Leading Indicator, Risk of Pullback.
4. RSI around 50.00, wait for it to fall between 35 and 40 to long.
5. Wait for a Strong Buy Signal at $0.075
You are solely responsible for your trades, trade at your own risk!
Let us know what you think in the comment section below!
How do we trade this?
In a bull channel, our bias should be toward the upside since the probability of profit is greater. That doesn't mean we long right now at $0.08, our Risk/Reward would be about 1:1. The better long entry is at the bottom of the bull channel around $0.75, which allows for a 1:3 Risk/Reward ratio if we target just shy of $0.09.
Not only does the price need to fall to $0.075, but we also need a strong bull signal and confirmation bar for a long entry. The signal bar will have a tail 1/3 to 1/2 the total bar size with the price closing on or near its high. The confirmation bar should be a strong bull bar closing on or near its high. This would be the safest long entry because it secures a higher probability that the price will continue to respect the bull channel.
Key Points
1. Bull Channel, Probability of Profit is greater to the upside. Always in Long.
2. Price in Center of Channel, wait for a pullback to enter long.
3. Bitcoin Leading Indicator, Risk of Pullback.
4. RSI around 50.00, wait for it to fall between 35 and 40 to long.
5. Wait for a Strong Buy Signal at $0.075
You are solely responsible for your trades, trade at your own risk!
Let us know what you think in the comment section below!
Note
Doge made contact with the bull channel support and bounced as predicted! It's reasonable to take a long here, but also reasonable to wait for one more bounce before entering.
-Joe Dean
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