Some things I like and don't like about this setup.
Pros
- Elliot wave correction ABC
- Broken short term trend line with big green candle
- recently bounced off lower boundary line of downtrend and price channel pattern
- Bollinger band is middle line to lower boundary line
- Bullish divergence on MACD
Cons
- DOWNTREND- don't ever trade against the trend
- you could argue the price channel is really a boardening triangle which is BEARish
- the breakout green candle was low on volume- which will typically fail or retrace
- even thou broke short downtrend line- still need to break upper price channel/triangle
- has broken below historic support and resistance
- full fibonnaci retracement plus some
The number 1 goal is to not lose money- profits will take care of themselves. That being said everyone has different levels of risk they are comfortable with. Set a proper stop loss. I am LONG in cryptoion general and think this is a good project but, I personally would WAIT and see what happens as BTC pulls back and how it will effect this coin. Good luck
Pros
- Elliot wave correction ABC
- Broken short term trend line with big green candle
- recently bounced off lower boundary line of downtrend and price channel pattern
- Bollinger band is middle line to lower boundary line
- Bullish divergence on MACD
Cons
- DOWNTREND- don't ever trade against the trend
- you could argue the price channel is really a boardening triangle which is BEARish
- the breakout green candle was low on volume- which will typically fail or retrace
- even thou broke short downtrend line- still need to break upper price channel/triangle
- has broken below historic support and resistance
- full fibonnaci retracement plus some
The number 1 goal is to not lose money- profits will take care of themselves. That being said everyone has different levels of risk they are comfortable with. Set a proper stop loss. I am LONG in cryptoion general and think this is a good project but, I personally would WAIT and see what happens as BTC pulls back and how it will effect this coin. Good luck
Note
Thought about this setup all day. More I thought, the more I liked it. All alt coins plummeted today- so did this one but not as badly and more importantly didn't break pattern. I still think all coins are risky right now because of the volatility with BTC. But with risk comes reward. Use a stop loss and trigger.
Currently, on hourly chart showing 6 bars on an inside bars pattern- set trigger above- no loss if breaks below.
Trade active
Inside bars Pattern broken.Notice weak volume on breakout (hourly chart). This volume alerts me to proceed with caution. Retest of upper boundary of inside bars boundary should be expected. Be cautious set a stop loss.
Common strategy on stop loss
1. Professionals in stock market- 6-8%
2. Crypto - 10%
3. Bottom of breakout channel/ pattern
4. Bottom of breakout candle
5. Average True Range ATR indicator- take output and double for 2 days worth of trading range
Good luck
Note
Go baby go!Leanring has taken place- Consider "Time Stops"
How long are you willing to wait?
I think the analysis was correct but the timing was premature. A true professional would of cashed out -recognized the miss in timing and reentered at a more opportune time. Opportunity has been lost by lost time and tied up capital.
Common Time Stops
Day Trade- 30min
Swing Trade- 2-3 hours
Position Trade- 1-2 days
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.
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.