XZC/BTC Descending Channel
Updated
Welcome to my first post!
This post will be somewhat lengthier than the ones to come as I'd like to include some background on myself and on what I've done that has led me to this first published chart.
I have been in the crypto-space since early 2018, and have not looked back since. Fascinated with the technology and the learning opportunity that this emerging market presented, I started following influencers and learning non-stop from them, mostly on Twitter. I noticed that most of them were pretty fluent in Technical Analysis (TA), and that it had supposedly been working for them. Thus, I bought "Technical Analysis of the Financial Markets" by John J. Murphy to test it out for myself, and managed to finish it in a month. Since then, I have non-stop studied charts, and a bit of fundamentals, which have both led me to start investing just recently. I will be posting charts that I find relevant to share along the way, and hopefully you and I can notice the improvement in calls and analysis as I move forward. Feel free to leave me any feedback with your thoughts and comments, I'll surely be reading.
This daily chart on ZCoin/BTC is one that I stumbled upon whilst digging for gems in the current alt bear market. This one particularly is not a gem by any means at the moment, but does present an interesting trend, that if played correctly, can lead to some profits. It's a descending channel that has been unfolding for over the past couple of months. The resistance has around ten touches, and the support around seven (arguably), which makes both trend lines strong. Also, note the recency in the previous touches of support, which definitely adds validity to it.
How I'm playing it at the moment is picking up XZC close to the support line, and hodling it until it approximates the resistance. Note the tentative (as it depends on where the price action is) stop-loss below the support line. As it reaches the resistance, I'll be playing close attention to what the chart reveals then; a rejection would lead me to sell all of my coins at an around ~30% profit, yet a breakout would then leave me waiting for the probable retest of the resistance as support. If the latter is the case, I'll be waiting for the breakout to unfold and profit around the ~50% mark, and in the case of a "fakeout", I'd be profiting at around the same point as the first mentioned scenario (+~30%). Additionally, note that the "RSI" and "Stoch" oscillators currently show the instrument as oversold, so I'd expect a runaway from the support in a short term of around six days. This is not financial advice.
As its my first call, I'm very eager to see how this one plays out over the next few weeks.
This post will be somewhat lengthier than the ones to come as I'd like to include some background on myself and on what I've done that has led me to this first published chart.
I have been in the crypto-space since early 2018, and have not looked back since. Fascinated with the technology and the learning opportunity that this emerging market presented, I started following influencers and learning non-stop from them, mostly on Twitter. I noticed that most of them were pretty fluent in Technical Analysis (TA), and that it had supposedly been working for them. Thus, I bought "Technical Analysis of the Financial Markets" by John J. Murphy to test it out for myself, and managed to finish it in a month. Since then, I have non-stop studied charts, and a bit of fundamentals, which have both led me to start investing just recently. I will be posting charts that I find relevant to share along the way, and hopefully you and I can notice the improvement in calls and analysis as I move forward. Feel free to leave me any feedback with your thoughts and comments, I'll surely be reading.
This daily chart on ZCoin/BTC is one that I stumbled upon whilst digging for gems in the current alt bear market. This one particularly is not a gem by any means at the moment, but does present an interesting trend, that if played correctly, can lead to some profits. It's a descending channel that has been unfolding for over the past couple of months. The resistance has around ten touches, and the support around seven (arguably), which makes both trend lines strong. Also, note the recency in the previous touches of support, which definitely adds validity to it.
How I'm playing it at the moment is picking up XZC close to the support line, and hodling it until it approximates the resistance. Note the tentative (as it depends on where the price action is) stop-loss below the support line. As it reaches the resistance, I'll be playing close attention to what the chart reveals then; a rejection would lead me to sell all of my coins at an around ~30% profit, yet a breakout would then leave me waiting for the probable retest of the resistance as support. If the latter is the case, I'll be waiting for the breakout to unfold and profit around the ~50% mark, and in the case of a "fakeout", I'd be profiting at around the same point as the first mentioned scenario (+~30%). Additionally, note that the "RSI" and "Stoch" oscillators currently show the instrument as oversold, so I'd expect a runaway from the support in a short term of around six days. This is not financial advice.
As its my first call, I'm very eager to see how this one plays out over the next few weeks.
Note
Already a couple of violent reactions to the support line, yet failing to pick up enough momentum to reach resistance. Still in the trade though, hoping for a run soon.Trade closed: target reached
CoinMarketCap "mistakenly" added a ZZEC listing under XZC, which caused today's massive pump. I managed to sell all of my ZCoin in the process, and will be looking to buy back once price stabilizes.Note
Price still respecting the descending channel religiously, with a perfect "kiss" on the lower support just recently; great for timing entries.
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