OMG long term bottom? OmiseGo, Part 3My previous analysis:
Previous analysis i showed a few signs, indicating the possible weakness on the short term, which got confirmed quite clearly eventually. It was a good example of a better safe than sorry situation. It bounced up twice exactly from that support area i showed and so far it has been moving up slowly.
I am going to try and trade this one, risking a tiny amount at the start and having a potential big win. How? well let me show you. I want to see a small drop again towards that trend line and green support zone , there i will buy a small amount and use that red zone below it as a stop loss. So if this fails, it will only be a small loss. If that plays out and we start to see the market move upwards, i will increase the size when we break that first red resistance zone and increase it even more if the second one breaks as well. While i increase, i move the stops higher as well to keep the same risk.
The daily candle looks quite good now, but still very low volume so we need to see more conviction from buyers here. The volume will probably start after the second red zone breaks.
Depending on your type of trading, you should choose if you look on the left or the right. Because looking at both shows you a lot more noise and makes things more complicated.
Most important factor in this whole idea is the following: The higher lows pattern The whole analysis (since part 1) has been based on this assumption. This pattern needs to hold. Second factor is the bullish wedge, that one gives more room to the downside, but if the higher low pattern breaks I won't be hoping for the wedge to work out.
Volume is dropping during this drop, showing there is not real selling pressure (or there are no buyers for sellers to sell in to :), in crypto it can be both). Anyway, for the bullish versions to succeed, we need to see that volume increase again.
Please don't forget to like if you appreciate this :)
Previous analysis:
