NEO - Trade Update
Updated
Overview:
This was the first active swing trade we have made in a while. Patience and cash on hand is the key to successful trading and investing. Our initial entry level was 117.
Technical:
Currently we reached the lower target level of 137 or the 1.618 extension of wave i. On the 12 hour chart we are showing a slight pullback and we are looking at the 127-130 (0.382 .238) level for a reversal. A pullback to the 124 level or the extreme lower level of 120.78 (0.618 retrace of the bullish swing) would negate the count, but not necessarily the bullish move.
So why don't I sell some and try and buy lower? Until the 130 level is hit we may be in a fractal of the iii' wave and surge higher. This is why I have the ? next to the iii'. Also looking at the shorter 4 hour chart, shown below, we have an engulfing candlestick so we are likely to see a bullish continuation. I mention often that the issue with most traders is they exit trades too soon. Also we are in the iii' wave regardless and I am willing to ride out a pullback in anticipation of wave v which should be strong as it is in an broader term wave 3 bull leg.
Conclusion:
Often people have the impulse to be in the market every day. This is not trading this is gambling. Sometimes the best trade is no trade. Though we have added positional trades to a few coins this is quite different then active swing or day trades, as we are looking to cover sell orders at a higher level with our core holding. It is not as important as to where we add as long as it is less then where we sold. Few are good at buying bottoms and selling tops and they all have a middle name "liar". This is why I do not panic on pullbacks especially with a nice cash position. I'm in this for the long run not to buy a lambo next week.
This was the first active swing trade we have made in a while. Patience and cash on hand is the key to successful trading and investing. Our initial entry level was 117.
Technical:
Currently we reached the lower target level of 137 or the 1.618 extension of wave i. On the 12 hour chart we are showing a slight pullback and we are looking at the 127-130 (0.382 .238) level for a reversal. A pullback to the 124 level or the extreme lower level of 120.78 (0.618 retrace of the bullish swing) would negate the count, but not necessarily the bullish move.
So why don't I sell some and try and buy lower? Until the 130 level is hit we may be in a fractal of the iii' wave and surge higher. This is why I have the ? next to the iii'. Also looking at the shorter 4 hour chart, shown below, we have an engulfing candlestick so we are likely to see a bullish continuation. I mention often that the issue with most traders is they exit trades too soon. Also we are in the iii' wave regardless and I am willing to ride out a pullback in anticipation of wave v which should be strong as it is in an broader term wave 3 bull leg.
Conclusion:
Often people have the impulse to be in the market every day. This is not trading this is gambling. Sometimes the best trade is no trade. Though we have added positional trades to a few coins this is quite different then active swing or day trades, as we are looking to cover sell orders at a higher level with our core holding. It is not as important as to where we add as long as it is less then where we sold. Few are good at buying bottoms and selling tops and they all have a middle name "liar". This is why I do not panic on pullbacks especially with a nice cash position. I'm in this for the long run not to buy a lambo next week.
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