COMPUSD trade ideas
CompI would assume a nice back test to 685-690 to confirm as new support then another launch. Let’s see what happens. Target of this move is 840 so we will see if it hits that before pulling back to retest 740 instead or how it’ll olay out
COMP RETEST?COMP recently broke resistance in the past couple of day. Hit one retest. Looking for re-entry on a second one.
Comp Trend IdeaAll,
If you look at previous price action/ RSI and compare it with current price action/ rsi there seems to be a pattern.
Previous price action which pushed to new ATH stayed within the RSI trend lines creating a pendant. Once RSI neared the end of the pendant it broke out to new ATH.
Current RSI is forming the same pendant and nearing the end of the pendant.
Previous breakout had a gain of $377. I am taking profits around $847
Let me know what you think about this pattern and trend. This is not trading advice.
COMP Price Breached EMA-8 & 13, What’s Next ?COMP price traded at $556 with a gain of 8.74% in the last 24-hour and 5.43% down in the weekly time frame. Furthermore, COMP price plunged from the resistance of $640. In contrast, the market capitalization stands at $2.78 billion. Technically, investors can perceive a positive crossover in the EMA, and the price is above the 55-EMA. RSI index showcases a downward slope. Moreover, the price movement can be towards the resistance of $640 in future trading sessions.
Resistance: $640
Support: $445
COMP - BREAKING OUTCOMPUSD - is breaking out of this daily resistance after forming a massive inverted head and shoulders ! price is going to get sent if it flips this resistance as new support.
Mitigating High Risk Long Positions with CoveringStop losses are an, often unwelcome, but ultimately necessary and life saving tactic to day trading. When going long, setting a high stop loss can be beneficial for getting out of bad trades quickly with small losses, and opening yourself up up more opportunities for good trades. Setting a low stop loss on the other hand, can be beneficial by greatly increasing your profit. Many trades that seem bad initially end up rallying and turning profitable. Generally speaking, the lower your stop loss, the higher your percentage of good trades. The downside to a low stop loss of course is that trades take longer, locking your funds up, and what if price actually hits your super low stop loss? You've lost a super amount of money.
In my trading career so far, I've preferred a low stop loss. Losing out on a good trade due to a conservative stop loss is more painful to me than the risk presented by a liberal one. But this is a high risk to accept. Losing, say, 20% of my trading capital is definitely something I want to avoid, but not at the cost of a high stop loss.
So, I can hedge my position, mitigate my risk, in one of a few ways. I can open a short position when I see my long position go south. Or I can engage in Dollar Cost Averaging: I buy more as the price falls to lower my average position size and ultimately my target profit. These are good options, but come with their own side effects. Opening a short position opens you up to risks associated with a short position, i.e. price suddenly shoots up. And Dollar Cost Averaging requires additional funds to keep buying. What else can I do?
Enter "Covering". From Investopedia: "To cover is to take a defensive action to lower the risk exposure of a position"
The graph attached here is a demonstration of Covering (the exact spots for buying/selling were picked hastily; this example is purely conceptual and an ideal situation). The basic idea is: when price begins to fall, sell it, just like a stop loss. However, unlike a stop loss, the intention is to buy back in at a lower price when price begins to rise again.
This is like dollar cost averaging, because you're, in a sense, lowering your average position size. The difference is you don't need additional funds. This is also like short selling, because you rely on the price continuing to fall, but you haven't borrowed anything in order to benefit from this fall.
As you can see in the diagram, as you sell and buy back, the amount of shares/coins/whatever you can afford off your initial capital increases, thus either increasing your profit if the trade hits the profit target, or decreasing your losses if the trade hits your actual stop loss.
Here's how Ive been setting up my covers:
When price begins to fall, I set a conditional market sell somewhere below the nearest support. If price falls to this level, I immediately sell everything
Once I've sold all my shares, I set a trailing stop loss for the cover; I generally do ~1.2%. If, after I sell, price rises 1.2%, I buy back as many shares as I can with the money I got from selling earlier. Ideally, this trailing stop falls well below where I sold.
Rinse and repeat until price either hits your original take profit or your original stop loss.
Some things to note. Do not buy below your original stop loss! The purpose of this strategy is to respect your original decision, not make new ones . This is meant to mitigate a high risk situation, don't expose yourself to more risk in doing so. Also, you theoretically want to buy back above your original stop loss, even if it looks like it's going to fall through. Make your own call here, but by not buying back, you've essentially just changed where your original stop loss is, and thus changed your original trade decision.
Of course, nothing is without its own risks. It's quite possible that you get stopped out for a loss every time you sell, i.e. you sold, price went up, so you buy back at a higher price to stay in the trade. This will eat into your profit if the profit target is eventually hit, or simply add to your losses if the stop loss is hit.
From my point of view, that risk is less painful than the risk of hitting a low stop loss without covering. You theoretically give yourself more chances of being right with these micro trades inside of your larger trade, and if you get lucky, as is the case in my diagram, you might actually profit even if your original stop loss is hit.
This strategy requires attention, for sure, but if you're both strategic and lucky, you can really save yourself from the downsides of a high risk trade without adding money to the pool, or exposing yourself to short selling risk.
Compound following Maker?Hey guys, might look like compound is following maker for 47% gains, just a few days later. Compound is also #1 in lending locked up compared to maker #2, so might be a little muted. Thoughts?
Compound: Breaking OutTo stay up-to-date with the latest market developments, be sure to subscribe to Kraken Intelligence at kraken.com
With DeFi largely underperforming its peers over the past few months, it comes as no surprise that we're starting to see bullish momentum rotate back into the space over the past few days. This is evident when looking at DeFi's total value locked (TVL), which just jumped from $52.5B on Monday to today's reading of $59.8B. Compound (COMP) is among the various DeFi plays that appear to be regaining bullish momentum...
If you're not familiar with Compound, what you should know is that Compound is a software running on Ethereum that aims to incentivize a distributed network of computers to operate a traditional money market. Compound uses multiple cryptoassets to provide this service, enabling the lending and borrowing required without a financial intermediary like a bank. Put simply, Compound allows users to deposit cryptocurrency into lending pools for access by borrowers. Lenders then earn interest on the assets they deposit. Once a deposit is made, Compound awards a new cryptocurrency called a cToken (which represents the deposit) to the lender. Examples of cTokens include cETH, cBAT and cDAI.
Now, moving onto the technicals... Per the 1-day chart provided above, we can see that COMP punched through $555 resistance earlier today and climbed to an all-time high of $593. With COMP having traded between $400 and $555 since February, today's breakout appears to have bucked said trend. Assuming we see COMP close above $555, and turn said resistance into support, we could see COMP enter back into price discovery mode as DeFi heats up yet again. But as always, where BTC trends next will likely dictate whether or not COMP can push higher.
COMP Inverse H&S BreakoutCompound looks to be another alt that is experiencing a neckline breakout from an inverse head and shoulders pattern.
It looks like a slight retracement is now occurring which has the potential to break down below the neckline still, however, assuming the trend continues, it has a bit of potential upward as indicated by the head to neckline length extended after the breakout (dashed blue line).
There is a similar breakout occurring against COMPBTC, so it looks like there is some potential to outpace BTC over the next few days as well if the breakout continues. I suppose we shall see soon if the breakout becomes more definitive in the next day(s) or so.
Picking up some COMPI should've got some COMP back in the move over 175. Or the momentum move through the 200's. Or during the previous consolidation in the mid 300's. However I didn't so I'm chasing momentum here. Not a great entry but I think there's more to run. I'm super bullish on Ethereum right now but I'm already in that position so putting a little in COMP as a related play as people discover how big the Ethereum space is and all the ways money is being made there. We're still in the middle of the crypto bull run so even mistakes are likely to eventually get bailed out (looking at you XTZ).
COMP-PERP | Short tradeHTF trend is bearish . Left clean lows on the way up, swept the high into the 61.8 and broke MS . Came back up to form a lower high that was swept and broke down further. Entered on market after the second break of MS . First target is the low of this corrective leg, second and third targets are the extension levels.
$COMPUSD - Long on Triangle and FlagHello everyone!
Compound is traded inside a symmetrical triangle, the projection on the chart is theoretical based on the price action.
There are two points where I suggest to close long positions, 1 - based on the flag pattern, 2 - based on the triangle pattern.
You can partially close position at 1 and wait for 2, up to you.
The best point to keep in mind in all chart pattern trades is wait for a breakout, the best of the best is wait for a breakout and retest, so wait for a signal and perform the necessary trade.
Technical Indicators Projects Upcoming Downtrend For COMP Price The weekly technical chart for COMP showcases a bearish momentum. Compound price is showing signs of negative momentum on coming to the daily chart. Comp price is trading above 50 and 100 Moving Average. The 50MA price is at $441, making it temporary support for the coin. The coin's resistance on the upside will be at $600, and on the downside, it will see a bounce back from $475.Compound price broke above the semi-circular top for a new high, but it is currently retracing back to the lower levels. If the price breaks below the support of $475, then it can reach up to $400 in no time.
Kindly comment your thoughts below
$COMP on the verge of breaking outCOMP/USD pair looks primed for the parabolic phase of its rise after flipping the S/R.
Let's make money!
EDiCrypto | COMPUSDTThis is just a simple painting , no more no less ... Do the right job with your knowledge !!!
