Updated
Point of maximum opportunity approaching on NANO 4H chart
NANO is on the verge of breaking down to new all time lows. The daily chart is close to completing to full TDS cycles to the downside with the second 9 buy printed on todays candle.
Here on the 4H chart we can see the TDS is on 4 as the price is breaking under the lows. This is the perfect set-up to buy capitulation as traders who bought as the price consolidated in the descending triangles have their stops hit and trigger a episode of panic selling to create new lows over the next 20 hours or so. The 4H RSI is already oversold with an extreme reading likely to develop to confirm the capitulation.
My expectation is a a reversal candle to form once the capitulation is complete with buys comfortably in the wick of the daily chart. The last example of capitulation on this chart reversed to a 300% pump in a few days, which makes it an attractive target for this trade. However the initial target is a breakeven stop to allow the reversal to develop.
The red box on the chart indicates likely areas for the lows to be made, small buys (5% of allocation) under 5600 should be realtively safe. I'm not planning on placing more than 25% of my allocation for this in catching the knife.
Here on the 4H chart we can see the TDS is on 4 as the price is breaking under the lows. This is the perfect set-up to buy capitulation as traders who bought as the price consolidated in the descending triangles have their stops hit and trigger a episode of panic selling to create new lows over the next 20 hours or so. The 4H RSI is already oversold with an extreme reading likely to develop to confirm the capitulation.
My expectation is a a reversal candle to form once the capitulation is complete with buys comfortably in the wick of the daily chart. The last example of capitulation on this chart reversed to a 300% pump in a few days, which makes it an attractive target for this trade. However the initial target is a breakeven stop to allow the reversal to develop.
The red box on the chart indicates likely areas for the lows to be made, small buys (5% of allocation) under 5600 should be realtively safe. I'm not planning on placing more than 25% of my allocation for this in catching the knife.
Note
The price skimmed the top of the box yesterday but failed to capitulate into buy zone on the 9 candle. Neither has a reversal formed whiich leads me to believe that the capitulation is yet to develop on this chart and may in fact drive price lower than expected as another full TDS 9 count to the downside is completed. Buy order moved to 50 aqd down
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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.