NEOBTC LONG
Updated
NEOBTC have been inside a falling wedge (which is a bullish reversal pattern) for the past week, today it broke the pattern
for the up side and made a throwback (testing support, former resistance). The strategy here is simple: I'm going to buy this support
and profit from the new uptrend. The risk here is quite small, just 1%, since I'm placing the stop-loss below the last low.
The MACD already made a bullish cross, RSI is near from it's average, it already made a cross but returned to the down side. If
it managed to go up again, it will be another confirmation of the new trend.
I expect this position to be very profitable if BTC keep rising for a while. All we have to do now is wait. Let's see how NEO is going
to act from now on...
Money management
This is my trading record. Never forget DYOR Do your own research
for the up side and made a throwback (testing support, former resistance). The strategy here is simple: I'm going to buy this support
and profit from the new uptrend. The risk here is quite small, just 1%, since I'm placing the stop-loss below the last low.
The MACD already made a bullish cross, RSI is near from it's average, it already made a cross but returned to the down side. If
it managed to go up again, it will be another confirmation of the new trend.
I expect this position to be very profitable if BTC keep rising for a while. All we have to do now is wait. Let's see how NEO is going
to act from now on...
- Stop-loss: 0.006779
- Entry: 0.006854
- Profit: 0.00734
Money management
- Volume: 3% of main capital
- Risk: 1%
- Reward: 7%
This is my trading record. Never forget DYOR Do your own research
Note
An important update must be made for this position: I decided to change my stop-loss making it a little looser.
I was taking a look at a bigger time frame and than I noticed one important
support that I wasn't considering today earlier when I openned this position.
My new stop-loss level is 0.00665, as you can see in the chart below,
there is 2 possibilities for NEO today: a descending triangle (bearish) or a normal triangle (neutral). It can go a little deeper and still trend up after hitting one of this two supports, so I moved my stop-loss below both supports.
As mentioned in money management earlier, this is a small position (only 3% of main capital) so, increasing my possible loss from 1% to 3% is totally fine.
Note
As you can see between two vertical lines, as prices move lower, volume have been decreasing too, this usually indicates that the bear trend is nearing it's end.About the two possibilities: the descending triangle is bearish for the longer term, but I'm still bullish on the short term, I believe NEO is going to make a some upward move, even if the descending triangle is confirmed (considering it will not be broken, of course). If NEO don't go lower and confirm the triangle (current support), that's a neutral pattern and we will analyse later.
Remember: BTC price action will be decisive on every alts position. This is why I'm not currently not entering too many alts position, My main capital is still in FIAT.
Trade closed manually
The former falling wedge became a descending parallel channel.
No more reversal signal, I decided closing this position before getting to
the stop-loss and wait until a new reversal signal appears.
Note
Remember: you don't have to always wait for your stop or target. If the chart have changed, patterns got invalidated, signals got against you, it's not smart waiting a bigger loss. Just close the position and wait for a new setup in your favor. It's not smart closing a favorable position early too. If price action is going acordding to the plan, let your winners run.
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