Get started

DGDBTC

DGD/BTC - Breakout Part 2Hi all I covered DGD/BTC prior to the most recent breakout (35% increase), and noticed a Volume/Price divergence (as indicated by the VZO). I've returned again to show you that the same situation is occurring on the H1 chart. Price has trended sideways (2% increase) over the last day, and yet the VZO is showing a huge buildup of bullish pressure. To me, this is a classic breakout signal. However, the indicator that shows us Bittrex long/short orders is highlighting that people are betting on a price drop. This doesn't mean they're right (or wrong), it's just something to be aware of. There's also the important point that it's a different exchange than what we're looking at, so that could explain the difference. So in terms of a trade, if you're aggressive I think the signs are there for a breakout, so get in now. If you want to be more conservative, wait for a solid break upwards that is accompanied by a volume increase. I'd expect a breakout to retrace back to the previous high, so a potential increase of 30% on where we are now. The stop-loss is set under the lowest shadow of the current consolidation period (a day), which is between 5 and 6%. This is a safe level, as if the price falls that far then the likelihood is that I was wrong and the breakout is going down rather than up. I'm personally more than willing to risk 5% on this trade, but you should adjust based on your personal risk and money management strategy. As an aside, it has become clear to me that DGD/BTC is a heavily manipulated market. It's a prime candidate for it, as it's such a low volume market. For a fundamental, long-term trader, that is bad news, as it means an individual (or individuals) are calling all the shots and determining what is happening. For a TA based, short-term trader like myself, it's brilliant. I'm happy to ride the breakouts up as long as they continue. That does, however, mean that this is a more volatile trade than usual, as a manipulated market is a less reliable market, so bear that in mind. Let me know your thoughts on this one, and if you're interested in the power of the VZO indicator, look at it for the DGD/BTC market on a H12 chart since November, and tell me what you see. Huge signals there for the willing trader. Until next time, good luck with your trading. RJR
DLong
by DreamsDefined
2
DGD/BTC - Heading for a big breakoutDGD/BTC is heading for an epic breakout. Since the huge 100%+ rise on the 2nd Feb it has been swinging between momentum cycles (15% - 45% swings), but now we've reached a stage where the bulls and bears can't land a knockout blow. This means there's a huge amount of pressure building up in the background, and one side will have to give. The side that gives is likely to surrender completely for a short period, leading to a large and violent price move in their direction. At this stage it's looking a little bearish (60/40), but these situations can go either way. I'd be looking to set a conditional buy in order above the previous high shadow (so something in the vicinity of 0.04700 - 0.047800 depending on your risk levels) for a long entry, and the reverse for a short. If you want to wait and try and catch the bottom (difficult in a breakout), remember to not move until either direction has broken it's first level of support and resistance. Otherwise you could get trapped. I generally always like to set a fairly tight stop loss with these as well. The price tends to move up or down so quickly that trailing shadows aren't a huge problem, and you also want to protect yourself given the speed in which these can occur. I'll update the Idea if the breakout occurs. Cheers and good luck, RJR
D
by DreamsDefined
5