Trade Analysis: $PEPE
PEPE has had its short time in the spotlight after crashing 72% from its all-time high- which doesn't mean much for a coin that has only existed for a few weeks. But we're not going to get into the ethics of meme coins in this post, so we'll table that thought and let you wrestle with it. Our goal in this post is to help you understand how to use our "TBO" indicator to recognize where trends begin, signs of when it would be wise to take profits, glaring signs of bearish sentiment, and how to identify re-entry points.#1: "TBO" Open Long (green triangle) signals a confirmation of an uptrend, measuring 1275% from Open Long to all-time high.
#2: on faster time frames (like the 4-hour), it's important to understand that faster doesn't equal stronger. In fact, it's the opposite when it comes to indicators. Longer time frames are stronger with indicators, but faster time frames give earlier warning signs and alerts.
With that said, when the price is stuck sideways, eventually a red line from the "TBO" will be printed, indicating "TBO" Resistance. These can be considered early take profit warnings/suggestions.
#3: whenever the price exits below the "TBO" Cloud, consider it strongly bearish. Usually these piercing events will be quick and fast, and bounce back into the "TBO" Cloud (as we see here on the chart.
#4: the red X is the "TBO" Cross Down symbol, forewarning that a bearish cross to the down side could be coming soon (which was accurately indicated).
#5: the pink triangle is the "TBO" Open Short, which confirms the bearish trend. Note that Open Longs and Open Shorts will typically be quite late to the trend. Their purpose isn't to give an early warning about a new trend, but to confirm the trend.
#6: lastly, for those who are risk-averse, we can use the green "TBO" Support line to identify future support and areas where the price might bounce. While the price did bounce about 12% off the "TBO" Support line, we have to remember that the 4-hour time frame is fast, and therefore weak.
We hope that this explanation of the "TBO" in action on
PEPE will help some of you understand the power behind this seemingly simple indicator!
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