COINBASE-SELL strategy Daily chartNo change in view, and adding we got a doji cross and still a very high RSI suggest we should move back below $ 100/share.
Strategy SELL @ 125.00-130.00 and take profit @ 99.50 for now. SL use a % based one.
COIN trade ideas
Coinbase: The Sky Is The LimitFor the first time in a long time, Coinbase NASDAQ:COIN recently broke out from the price base it's been stuck in over the last year and a half.
Since breaking below $100 per share last May during the Terra / Luna collapse, the stock has languished as a laughingstock of wall street and an SEC punching bag:
However, with CZ, the CEO of Binance, stepping away from the rival platform, Coinbase now has shot to become the best, biggest, most 'trusted' onshore crypto broker.
CZ's settling of his legal woes also appears as though it could be the beginning of the end when it comes to overregulation and misregulation of the sector. Combined with COIN's recent win in court over the SEC, things are looking up from a legal perspective.
Despite the rally, there are still some issues.
The stock still remains down from it's IPO day pricing above $400, and the stock has seen volatile earnings and profits as the crypto frenzy has slowed down:
That said, the company has worked to diversify its revenue, and it's 'Base' chain, by all accounts, has been successful so far, jumping into the top few chains by volume and TVL.
We expect great things as crypto begins to get its mojo back, and we're excited to take the ride.
Tactically, we think the stock could experience a quick pullback as investors will likely do some profit taking. Then, from there, we see open skies until $150 and $220, the next two swing low pivot points. Broadly, we like taking this long while risking to $88 and trailing on pivots.
Good luck out there.
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Decoding the SEPA ® Method: Mastering Minervini’s ApproachDecoding the SEPA ® Method: Mastering Minervini’s Approach to Swing Trading
Introduction
In the dynamic and often complex world of stock trading, few names resonate with as much authority and respect as Mark Minervini. A legendary figure in the realm of finance, Minervini has carved out a niche for himself as a veritable guru of swing trading, a technique where traders seek to capture gains in a stock within a period of a few days to several weeks. His reputation is not merely built on success, but on a consistent, methodical approach that has been refined over decades of experience. Minervini's journey from an aspiring trader to a U.S. Investing Champion is a testament to his profound understanding of market dynamics and his unwavering dedication to his craft.
Central to Minervini's success and teachings is his Specific Entry Point Analysis (SEPA), a methodology that has revolutionized the way traders approach the stock market. SEPA isn’t just a trading strategy; it's a comprehensive framework that synthesizes technical analysis, fundamental analysis, risk management, and psychology into a cohesive system. This approach focuses on identifying high-potential stocks before they make significant price moves, enabling traders to enter trades at the most opportune moments.
At the heart of SEPA is the philosophy that stock trading is not just about picking winners, but doing so in a way that meticulously manages risk and maximizes potential rewards. It's about understanding the nuances of market trends, recognizing the right patterns, and acting on them with precision. Minervini’s methodology stands out for its emphasis on buying stocks that are not just rising, but are poised to continue their ascent, all while maintaining a strict risk management protocol to protect against losses.
The significance of SEPA in swing trading cannot be overstated. In a domain where timing is everything, SEPA provides a structured approach to identifying the most opportune moments to enter and exit trades. This methodology empowers traders to make informed decisions, backed by a blend of technical indicators and a deep understanding of market psychology. Whether for seasoned traders or those new to the field, mastering SEPA is akin to gaining a new lens through which the stock market's movements can be deciphered more clearly and profitably.
As we delve deeper into the intricacies of SEPA, we uncover the layers that make this methodology not just a set of rules, but a philosophy that guides every decision in the high-stakes world of swing trading. It's a testament to Minervini's genius and a beacon for those navigating the ever-shifting currents of the stock market.
Section 1: The Foundations of SEPA
The Genesis of SEPA
The Specific Entry Point Analysis (SEPA) methodology is the brainchild of Mark Minervini, a renowned figure in the stock trading arena. This approach was born from Minervini's relentless pursuit of a reliable, systematic strategy for swing trading—a pursuit fueled by years of rigorous study, trial, and real-world application. What sets SEPA apart is its genesis in both the triumphs and setbacks Minervini experienced in the early stages of his career. By dissecting each trade and meticulously analyzing market patterns, he distilled a set of principles that would become the cornerstone of SEPA. This methodology isn't just a set of techniques; it's the crystallization of hard-earned wisdom and a deep understanding of market mechanics.
The Core Principles of SEPA
SEPA is grounded in four foundational pillars: risk management, stock selection, market timing, and entry points. Each of these elements plays a crucial role in the methodology:
1. Risk Management: At the heart of SEPA is a stringent focus on minimizing risk. Minervini emphasizes that successful trading is less about the frequency of wins and more about the magnitude of those wins against losses. The SEPA approach advocates for a disciplined risk management strategy, where setting stop-loss limits and knowing when to exit a trade are as important as entering one.
2. Stock Selection: SEPA advocates for a meticulous selection process, emphasizing stocks with the highest potential for growth. This involves analyzing companies with strong fundamentals—such as earnings growth, market leadership, and industry strength—and overlaying this with technical analysis to identify stocks poised for breakout.
3. Market Timing: Understanding the market's mood is vital in SEPA. It's not just about what to buy or sell, but when to do it. SEPA stresses the importance of aligning trades with the overall market direction and sentiment. This synchronization with market cycles is crucial for maximizing trade efficiency.
4. Entry Points: SEPA distinguishes itself with its focus on 'specific entry points.' The methodology prescribes entering a stock at a point where the probability of upward momentum is highest and before the majority of the move has occurred. This precision in timing entry points is what often differentiates successful trades from the rest.
The Essence of Risk-Reward Ratio
A pivotal aspect of SEPA is the emphasis on a strong risk-reward ratio. Minervini champions the principle that the potential upside of a trade should significantly outweigh its downside. This concept is not just about setting a high bar for potential profits; it's about ensuring that each trade is entered with a clear understanding of the potential loss and a plan to mitigate it. The risk-reward ratio is a crucial metric in SEPA, guiding traders to make decisions that align with their risk tolerance and trading goals.
Section 2: Understanding the SEPA Criteria
The SEPA Framework for Stock Selection
In the world of SEPA (Specific Entry Point Analysis), the process of selecting stocks is far from arbitrary. It is a methodical approach, relying on a combination of technical and fundamental analysis to identify stocks with the highest potential for growth. Mark Minervini, the architect of SEPA, has defined a clear set of criteria for stock selection, each playing a pivotal role in the decision-making process.
Price Trend and Pattern Recognition
One of the keystones of SEPA is the focus on price trends and pattern recognition. This involves analyzing historical price movements and chart patterns to predict future stock performance. Minervini emphasizes the importance of identifying stocks in a strong uptrend, characterized by higher highs and higher lows. He also looks for specific chart patterns that historically precede significant price increases, such as cup-and-handle or tight consolidation patterns. These patterns are indicative of a stock accumulating strength before a potential breakout.
Volume Dynamics
Volume plays a critical role in validating the price movements of a stock. In SEPA, significant price moves accompanied by high volume are considered more credible and sustainable. High trading volume suggests a strong conviction in the stock's movement, whether it’s an upward surge or a downward trend. Minervini pays close attention to volume spikes, particularly when they coincide with breakout moments from established patterns, as these often signal the start of a major price move.
Relative Strength Compared to the Market
Relative strength is a key concept in SEPA, referring to a stock's performance in relation to the overall market or its specific sector. Stocks that outperform the market, especially during periods of general market weakness, are often prime candidates in SEPA analysis. This outperformance indicates inherent strength and investor confidence, suggesting that the stock may continue to thrive even in less favorable market conditions.
Fundamental Criteria
While SEPA heavily incorporates technical analysis, it also places significant importance on a company's fundamentals. Criteria such as earnings growth, sales growth, return on equity, profit margins, and debt levels are carefully examined. Minervini looks for companies with strong, consistent earnings growth, robust sales figures, and solid financial health. These factors are crucial as they provide a sound basis for a stock's potential for long-term growth, beyond just technical indicators.
The Synergy of Technical and Fundamental Analysis
The essence of SEPA lies in the harmonious integration of technical and fundamental analysis. While technical analysis helps in timing the market and identifying entry points, fundamental analysis offers a deeper insight into a company’s intrinsic value and growth potential. This dual approach enables traders to make well-rounded decisions, balancing immediate market signals with long-term company performance.
Minervini's SEPA method teaches that neither technical nor fundamental analysis should be used in isolation. By combining both, traders can filter out noise, focusing on stocks that not only show promising technical patterns but are also fundamentally strong. This comprehensive approach is what sets SEPA apart and has contributed to its effectiveness and popularity among traders.
Section 3: The SEPA Trading Process
Identifying Trading Opportunities with SEPA Criteria
The first step in the SEPA trading process is the identification of potential trading opportunities. This involves a meticulous analysis of stocks through the lens of the SEPA criteria: price trends and patterns, volume dynamics, relative strength, and fundamental health. Traders using the SEPA methodology scan the market for stocks exhibiting the tell-tale signs of an impending price surge, such as a strong uptrend, breakout patterns, and high relative strength compared to the market. These indicators, combined with robust fundamental metrics like impressive earnings growth and solid financials, flag stocks as prime candidates for trading.
Timing the Market: Understanding Cycles and Sentiment
SEPA is not just about finding the right stocks; it's equally about timing the market. This aspect involves understanding and interpreting market cycles and overall market sentiment. Minervini emphasizes the importance of aligning trades with the broader market direction. A bullish stock in a bearish market, or vice versa, might not perform as expected. Traders using SEPA stay attuned to market trends, economic indicators, and investor sentiment, using them as a backdrop against which individual stock performances are gauged. This sensitivity to the market's rhythm helps in making informed decisions about when to enter and exit trades.
Entry Strategies: Determining the Right Entry Poin t
A critical component of the SEPA methodology is determining the precise entry point for a trade. This decision is based on a confluence of technical indicators, including the completion of a bullish chart pattern and a corresponding increase in trading volume. The ideal entry point is often just after a stock breaks out of a consolidation pattern, signaling the start of a potential uptrend. However, timing is key; entering too early or too late can significantly affect the trade's outcome. SEPA traders use a combination of real-time analysis and historical patterns to identify these specific entry points, seeking to maximize gains and minimize exposure to volatility.
Setting Stop-Loss Orders and Managing Risk
Risk management is a cornerstone of the SEPA approach. Minervini advocates for setting strict stop-loss orders to protect against unforeseen market movements. A stop-loss order is an automatic sell order set at a certain price level, usually below the purchase price, to limit potential losses. Determining the stop-loss level involves assessing the stock's volatility and the trader's risk tolerance. This proactive approach to risk management ensures that losses are contained and capital preservation is prioritized.
Section 4: Real-world Examples and Case Studies
Analyzing Successful SEPA Trades
One of the best ways to understand the efficacy of the SEPA methodology is through the lens of real-world examples and case studies. Let's consider a few historical trades that were successful under the SEPA framework:
1. Case Study 1: The Tech Breakout - A prominent example involves a technology stock that showcased a classic cup-and-handle pattern on its chart. The stock was also showing strong relative strength compared to the overall market and was backed by solid earnings growth. The entry point was identified just as the stock was breaking out of the pattern, coupled with a significant increase in volume. This trade was successful because it adhered to all the SEPA criteria: a strong technical pattern, high relative strength, sound fundamentals, and a clear entry point marked by increased volume.
2. Case Study 2: The Retail Surge - Another instance involved a retail company that had been consolidating for several months but maintained a strong earnings record. When the stock eventually broke out of its consolidation range on high volume, it signaled a strong buy under the SEPA methodology. The trade capitalized on the combination of a bullish technical signal and robust fundamental performance.
Why Certain Trades Work and Others Don’t
In analyzing these successful trades, it's evident that their success hinged on a strict adherence to the SEPA criteria. Conversely, trades that fail often do so because one or more of these criteria were overlooked or misinterpreted. For example, entering a trade solely based on a technical pattern without considering the stock's fundamental strength or the overall market sentiment can lead to unfavorable outcomes. Similarly, ignoring the importance of volume as a confirmation for a breakout can result in false signals.
Lessons Learned from SEPA Case Studies
Several key lessons emerge from these case studies:
1. The Importance of a Holistic Approach: Successful trades often result from a balanced consideration of both technical and fundamental factors. Relying too heavily on one aspect can lead to missed signals or misjudgments.
2. Timing and Precision Matter: Entry and exit points are crucial in the SEPA methodology. Even the right stock, if traded at the wrong time, can lead to suboptimal results.
3. Risk Management is Key: The trades that fare best under SEPA are those where risk management rules are strictly followed. This includes setting appropriate stop-loss levels and being willing to exit a trade when the initial analysis is no longer valid.
4. Market Context is Essential: Understanding the broader market environment is critical. A strong stock in a weak market, or vice versa, may not perform as expected.
Section 5: Common Challenges and Mistakes in SEPA
Identifying Pitfalls and Misconceptions
While the Specific Entry Point Analysis (SEPA) methodology offers a structured approach to swing trading, it is not without its challenges and common mistakes. Understanding these pitfalls is crucial for both novice and experienced traders aiming to effectively implement the SEPA strategy.
1. Overemphasis on Technical Analysis: One common mistake is focusing too heavily on technical indicators while neglecting fundamental analysis. While SEPA does involve meticulous chart and pattern analysis, disregarding a company’s fundamental health can lead to risky investments in stocks with weak financials or poor growth prospects.
2. Misinterpreting Volume Signals: Another challenge is correctly interpreting volume dynamics. Some traders might misread volume spikes or overlook the importance of volume in confirming breakout patterns, leading to false entries or exits.
3. Ignoring Market Context: Traders sometimes fail to consider the broader market sentiment or trend, which is critical in SEPA. A bullish stock in a bearish market might not perform as anticipated, and vice versa.
4. Poor Risk Management: Perhaps the most critical mistake is inadequate risk management. This includes setting inappropriate stop-loss orders or not adhering to them, resulting in larger than necessary losses.
Strategies to Avoid These Mistakes
To avoid these common mistakes, traders should adopt several strategies:
1. Balanced Analysis: Ensure a balanced approach that considers both technical and fundamental aspects of a stock. This means not just looking at chart patterns but also at a company's earnings, growth potential, and financial stability.
2. Thorough Volume Analysis: Pay close attention to volume patterns and learn to interpret them correctly. High volume should accompany significant price moves, especially during breakouts.
3. Market Awareness: Stay informed about overall market trends and sentiment. Aligning individual trades with the general market direction is crucial for the success of the SEPA methodology.
4. Disciplined Risk Management: Establish clear risk management rules, including strict stop-loss orders, and adhere to them rigorously. It's better to exit a losing trade early than to hope for a turnaround that may never come.
Tips for Beginners Adopting SEPA
For beginners keen on adopting the SEPA approach, here are some tips:
1. Start with Education: Familiarize yourself thoroughly with the SEPA methodology. Understand its principles, strategies, and the rationale behind them.
2. Practice with Paper Trading: Before investing real money, practice with paper trading to get a feel for how SEPA works in real market conditions without financial risk.
3. Learn from Mistakes: Analyze every trade, successful or not, to understand what worked and what didn’t. Learning from mistakes is as important as celebrating successes.
4. Stay Disciplined: Discipline is key in trading. Stick to your analysis and don’t let emotions drive your trading decisions.
5. Seek Community and Resources: Engage with a community of SEPA traders and seek out educational resources to continuously improve your understanding and application of the methodology.
Section 6: Advanced SEPA Strategies
Elevating SEPA for Experienced Traders
For traders who have mastered the basics of Mark Minervini's Specific Entry Point Analysis (SEPA), there are advanced strategies and nuances that can be employed to further enhance trading performance. Experienced traders can delve deeper into the complexities of SEPA, fine-tuning their approach to align with their unique trading styles and goals.
Adapting SEPA to Varying Market Conditions
1. Bull Markets: In a strong bull market, SEPA traders can look for stocks showing relative strength and breaking out from sound consolidation patterns. Here, the focus can be on aggressive growth stocks with higher potential for rapid gains.
2. Bear Markets: During bearish phases, SEPA strategies can be adjusted to focus on defensive stocks or sectors that tend to outperform the market. In such conditions, more stringent criteria for entry points and tighter stop-loss orders are advisable to manage the heightened risk.
3. Sideways Markets: In range-bound markets, traders might concentrate on stocks with strong fundamentals that are showing relative strength against the market, trading within well-defined channels. Here, buying at the lower channel and selling at the upper channel, or shorting at the upper channel and covering at the lower channel, can be effective.
Integrating SEPA with Other Trading Tools and Methodologies
1. Combining with Quantitative Analysis: Experienced traders can combine SEPA with quantitative analysis tools, such as algorithmic trading systems, to identify potential trade setups more efficiently.
2. Using Options for Leverage and Hedging: Implementing options strategies alongside SEPA can provide leverage and hedging capabilities. For instance, buying calls on stocks that are breaking out or selling puts on stocks near support levels can enhance returns while managing risk.
3. Sector Rotation Strategies: Understanding and applying sector rotation strategies in conjunction with SEPA can be beneficial. This involves shifting investments among stock market sectors as the economy moves through different phases of the business cycle.
4. Incorporating Sentiment Analysis: Advanced traders can integrate market sentiment tools, such as social media analysis and news sentiment indicators, to gauge investor sentiment and potential market directions that might impact their SEPA strategies.
5. Risk Diversification Techniques: Implementing risk diversification techniques, such as spreading capital across various sectors and not over-concentrating in a single stock, can help manage overall portfolio risk.
6. Continuous Learning and Adaptation: Finally, it's crucial for seasoned traders to stay abreast of new market trends, economic developments, and trading technologies. This continuous learning and adaptation can lead to more refined and effective SEPA strategies.
Section 7: SEPA in the Digital Age
Embracing Technology in SEPA Analysis
In the rapidly evolving landscape of financial markets, technology plays an instrumental role in enhancing and refining trading strategies like Specific Entry Point Analysis (SEPA). The digital age has ushered in a host of tools and innovations that can significantly augment the SEPA methodology, making it more efficient, accurate, and adaptable.
1. Trading Software and Platforms: Advanced trading platforms now offer a myriad of tools that align well with SEPA strategies. These include sophisticated charting tools for pattern recognition, real-time market data feeds, and automated alert systems for potential entry and exit points. Such platforms enable SEPA traders to monitor multiple stocks simultaneously and execute trades more swiftly.
2. Artificial Intelligence and Machine Learning: AI and machine learning are revolutionizing the way traders analyze the market. These technologies can process vast amounts of data – from price movements to economic indicators – at speeds and depths beyond human capability. For SEPA traders, this means more precise pattern recognition, enhanced predictive analytics, and better risk assessment models.
3. Algorithmic Trading: Algorithms can be designed to automatically identify stocks that meet the SEPA criteria, execute trades at optimal entry points, and manage risk with pre-set rules. This automation not only speeds up the trading process but also helps in maintaining discipline, a key aspect of the SEPA strategy.
Future Prospects of SEPA in Evolving Financial Markets
As financial markets continue to evolve, the principles of SEPA remain relevant but may require adaptation to align with new market dynamics.
1. Adapting to Market Volatility and Complexity: Financial markets are becoming increasingly volatile and complex. SEPA traders will need to continually refine their strategies to adapt to these changes, possibly by incorporating more real-time data analysis and adapting to shorter or more erratic market cycles.
2. Integration with Emerging Technologies: The integration of SEPA with emerging technologies like blockchain and decentralized finance (DeFi) platforms could open new opportunities. These technologies might offer more transparent and efficient market data, enhancing the accuracy of SEPA analysis.
3. Educational and Collaborative Tools: The proliferation of online trading communities and educational resources will make SEPA methodologies more accessible to a broader audience. Collaborative tools and platforms can facilitate knowledge sharing and collective analysis, benefiting traders at all levels.
4. Sustainability and Ethical Investing: As the trend towards sustainable and ethical investing grows, SEPA strategies might also evolve to include environmental, social, and governance (ESG) criteria in stock selection and analysis.
5. Globalization of Markets: The globalization of financial markets offers SEPA traders a broader canvas. Adapting SEPA to different regional markets and economic conditions will be crucial for traders looking to capitalize on global opportunities.
Conclusion
Synthesizing the SEPA Journey
As we conclude this exploration of Mark Minervini's Specific Entry Point Analysis (SEPA), it's important to reflect on the key insights and lessons gleaned from this comprehensive methodology. SEPA, with its roots in meticulous analysis and disciplined execution, stands as a testament to the power of a well-structured approach in the realm of swing trading.
Key Takeaways from the SEPA Methodology
• The Four Pillars: We began by understanding the foundational elements of SEPA: risk management, stock selection, market timing, and precise entry points. These pillars form the bedrock of the SEPA approach, guiding traders through the complexities of market dynamics.
• Criteria for Stock Selection: Delving deeper, we examined the specific criteria SEPA employs for choosing stocks, including price trends, volume analysis, relative strength, and fundamental analysis. The synergy between technical and fundamental analysis emerged as a critical aspect of effective stock selection.
• The Trading Process: The SEPA trading process, encompassing opportunity identification, market timing, entry strategies, and risk management, was dissected to provide a roadmap for practical application.
• Learning from Real-world Cases: Through case studies and real-world examples, we observed SEPA in action, learning from both successes and failures to glean valuable insights into effective trading strategies.
• Navigating Challenges: Recognizing common pitfalls and challenges in SEPA helped us understand the importance of a balanced, disciplined approach, particularly for those new to the methodology.
• Advancing with SEPA: For the experienced trader, we explored advanced strategies and adaptations of SEPA in varying market conditions, emphasizing the role of continuous learning and adaptation.
The Enduring Relevance of SEPA
SEPA's relevance in modern swing trading remains robust. Its principles of disciplined risk management, combined with a keen analysis of market trends and stock fundamentals, provide a timeless framework suitable for navigating the ever-changing financial markets. As markets evolve, the core tenets of SEPA continue to offer valuable guidance for traders seeking to maximize their trading potential.
A Call to Continuous Learning and Application
The journey with SEPA doesn't end here. Whether you're a novice trader just starting out or an experienced market participant, the SEPA methodology offers a path for growth and refinement in your trading practices. The world of trading is dynamic and requires a commitment to continuous learning, adaptation, and disciplined application of proven strategies.
As you integrate SEPA into your trading toolbox, remember that the journey is as much about personal growth as it is about financial success. Embrace the lessons, celebrate the successes, and learn from the challenges. SEPA is more than just a strategy; it's a pathway to becoming a more astute, resilient, and successful trader.
cup on dailymara, riot and coin all in a cup formation on daily and 4 hour. Cathie woods dumped coin on Monday. however could continue uptrend with BTC ETF in jan.
COINBASE-SELL strategy 4-hourlyof course it reflects the state of crypto levels, and these are overbought as well.
I feel we may see move below $ 100 for the share price in coming sessions.
Strategy SELL @ $ 125-130 and place SL @ 143. Profit order @ 87.00.
Coinbase Gearing Up for its next MoveHi guys! This is an Update on recent Technical developments found for Coinbase (COIN).
I've successfully identified the Inverse Head & Shoulders Pattern. Check out that idea down below.
We have completed the Return Rally back to test Support on the Neckline. Now ive been assessing if there are signs that we continue the Inverse Head and Shoulders with our final explosive breakout move.
This analysis is done on the 1 day timeframe.
As you can see we have tested and CONFIRMED Support on the Neckline.
After doing so we have inched higher.
Notice now, we are ABOVE the 21 EMA.
With the last 3 days of candles, forming LOWER WICKS off the 21 EMA.
This is a great sign of SUPPORT.
We must continue to stay ABOVE the 21 EMA.
Being Above the 21 EMA on any timeframe indicates that we will most likely have an UPTREND in price.
Notice also the Orange Rectangle. This highlights a consolidation zone. This shows to me that we are building up momentum for our final rally of the Inverse Head & Shoulders Pattern.
A confirmation ABOVE the Upper Border of Rectangle, will indicate Rally may be starting.
To keep us on our toes, just remember that if price action goes BELOW the Lower Border of the Rectangle, we risk testing the Neckline again. Which is always a possibility . As long as we maintain the Neckline as Support, we good.
Watch VOLUME -> We need it to start picking up for indication of the major move.
This move will essentially lead to trend reversal for COIN, confirming the bottom.
__________________________________________________________________________________
Thank you for taking the time to read my analysis. Hope it helped keep you informed. Please do support my ideas by boosting, following me and commenting. Thanks again.
Stay tuned for more updates on COIN in the near future.
If you have any questions, do reach out. Thank you again.
DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy.
Coinbase BreakoutNASDAQ:COIN
Coinbase Weekly chart is breaking out of an inverted head & shoulders pattern.
The move from the lows to the neckline of the pattern is about 262%.
A 262% move starting from the neckline will take Coin right back to the ATH from the IPO, $429.
Fork intercepts the ATH in late July 2024.
Staying long if the price stays within the fork.
Fat_Fat
COINSo long as BTC1!, at minimum, continues to hold juncture described in previous idea, COIN likely approaches 130
IF BTC1! markup to fill last week's 38575 gap then COIN turbo sned 130
COIN's 5 Wave StructurePrior to the parabolic run in June, COIN was building a support base at the golden pocket (.618 fib retracement). Now, after what looks to be a correction, COIN is building a base underneath once more (again at the golden pocket) and ready to spring.
Year and a half base at the bottom...
Coinbase International to List ADA, LINK, DOGE & XLM Future PairCoinbase International Exchange, the offshoot of Coinbase Global Inc. catering to clients outside of the United States has announced its plans to list Perpetual Future Contracts for four new assets including Cardano (ADA), Chainlink (LINK), Dogecoin (DOGE) and Stellar (XLM).
Coinbase Listing Schedule
As unveiled by the trading behemoth, the four trading pairs for the four assets will be listed on December 30 by 10 am UTC, setting the stage for its clients to embrace these new digital currencies provided the liquidity conditions are met.
Specifically, the trading firm said the pairs ADA-PERP, LINK-PERP, DOGE-PERP, and XLM-PERP markets will go live on the Coinbase International Exchange and Coinbase Advanced respectively. This listing places the four new cryptocurrencies alongside Bitcoin (BTC), Ethereum (ETH), and XRP among others that have been listed since the platform was launched to serve non-US customers.
With the relatively unclear regulations that bind Coinbase users in the United States, the exchange had to explore a different avenue to serve its non-US customers the right way. This gave birth to Coinbase International and the latest addition of ADA, LINK, DOGE, and XLM forms a strategic expansion move that can reach more traders in the broader digital currency ecosystem.
The choice of these assets was an easy one considering their unique value propositions and dedicated community of followers. While Cardano has made headlines thus far this year for its new innovations and dedication to development efforts, Chainlink has continued to expand its reach as the de-facto Oracle service provider in the industry.
The duo of Dogecoin and Stellar also have their unique appeal and audiences, making them the right pick for the Coinbase International Exchange listing.
The Strategic Decision on Assets to Support
In order to adhere strictly to regulatory provisions around the world, Coinbase decides on which assets to provide support for based on their respective status in the industry.
Besides Bitcoin and Ethereum futures, the platform also supports XRP futures on its international platform, a move that came after the digital currency earned the status as the only altcoin that cannot be tagged as an investment contract in the United States.
Price Momentum
COIN is trading near the top of its 52-week range and above its 200-day simple moving average.
What does this mean?
Investors have been pushing the share price higher, and the stock still appears to have upward momentum. This is a positive sign for the stock's future value.
COINAll the boomers that sold stonk last Thanksgiving week had to wait for their proceeds to settle
They're buying COIN this week
So long as BTC holds its 37k support (it looks to be catching a bid now) this one going to fly
$COIN Inverse Head & ShoulderThe announcement of #Binance incurring a substantial $4.3 billion penalty and facing exclusion from the U.S. market likely came as incredibly favorable news to Brian Armstrong, the CEO of #Coinbase . This development seems to place Coinbase (COIN) in a notably advantageous position. Observing the stock's technical chart, there is an apparent near-completion of an inverted Head and Shoulders (H&S) pattern, a bullish signal in technical analysis, indicating a potentially strong position for NASDAQ:COIN in the market. #COIN
Just send it back to 35Nobody wanted to buy it at 35-50. Now everyone and their mom wants to buy it at 115.
charts showing 300+, bullish at the top of a range.
Send it to 35, maybe take a stab at it there, again, when no1 else will touch it.
Indicators clearly overbought, M shape in the making on price action.
#COIN#Comprehensive Analysis of Coinbase Global, Inc. (COIN)
1. Current Status and Performance 📈
As of the most recent data, the current price of COIN is $115.75. Over the past 12 months, COIN has returned 66.84%, outperforming the SPY's performance of -9.24%. This performance has earned it a C (55.66%) for its Overall Grade.
2. Financials 💰
Coinbase's financials reveal a revenue per share of 11.7321 and a net income per share of -3.1001. The operating cash flow per share stands at 17.5327, while the free cash flow per share is 17.2606. The company's cash per share is 23.187, and the book value per share is 24.9552. The company's debt to equity ratio is 0.5225, indicating a moderate level of debt relative to equity.
3. News and Market Sentiment 📰
Recent news stories suggest a positive outlook for Coinbase. Bitcoin has reached a new high for the year, with enthusiasts targeting $40,000 as the next goal. This is despite Binance co-founder Changpeng Zhao pleading guilty to U.S. anti-money-laundering law violations and resigning from his company. Bitcoin's value rose to $38,294 on Friday, its highest since May 2022, marking a 3% increase in 24 hours.
4. Earnings Report 💵
Coinbase is expected to report an EPS of -0.22 and $170k in revenue on 2024-02-20. In the Coinbase Q3 2023 Earnings Call, CEO Brian Armstrong and CFO Alesia Haas reported strong performance despite low market volatility, attributing it to operational discipline and favourable interest rates. They discussed Coinbase's vision of "Onchain" technology, recent license acquisitions, and challenges posed by proposed IRS regulations. The company is focusing on the adoption of its Layer 2 solution, Base, which has over 1 million transacting wallets. They also have plans to monetize Base and integrate it into all its products. Regarding the SEC case, Coinbase is confident of winning with oral arguments for judgment scheduled for 17 January 2024.
5. Future Outlook 🚀
Coinbase Global, Inc. reported a net revenue of $623.0 million in Q3 2023, with a net loss of $2.3 million. The company focused on expanding internationally, launching advanced trading features, and introducing an advanced layer 2 solution. They faced legal and regulatory proceedings but believe they won't have a significant impact on their financial condition. They acknowledged limitations and risks in their internal controls, including regulatory oversight and potential litigation. Fluctuations in currency exchange rates could harm their operating results. They highlighted the need for deferred tax assets and potential limitations on their use. They discussed the potential need for additional capital and the volatility of their stock price. The dual class structure of their common stock concentrates voting control with certain stockholders. They disclosed the adoption of Rule 10b5-1 Plans for potential stock sales by certain directors and officers and included required certifications and exhibits.
6. Conclusion 🎓
Coinbase Global, Inc. appears to be in a strong position, with positive news sentiment, a robust financial performance, and a promising future outlook. However, as with any investment, it's crucial to consider all factors and conduct thorough research before making a decision. It's also important to consider your own investment goals and risk tolerance.
Minervini’s Specific Exit CriteriaIntroduction
In this tutorial, we delve into the heart of Mark Minervini's trading philosophy—his specific exit criteria. Mastering the art of exiting a trade is as important as knowing when to enter. Minervini, a renowned stock market wizard, emphasizes that the secret to successful trading lies not just in selecting the right stocks but also in understanding when to sell them. This section focuses on three fundamental aspects of his exit strategy: the Stop-Loss Strategy, the Profit Target Strategy, and the Trailing Stop Strategy.
Each part of this section is designed to provide you with a deep understanding of these strategies, integrating the wisdom of Minervini's approach with practical, actionable steps. Whether you're a seasoned trader or just starting, mastering these exit strategies will empower you to make informed decisions, manage risks effectively, and maximize your trading potential. Let's embark on this journey to unravel the nuances of Minervini's exit strategies and apply them to enhance our trading acumen.
1. Stop-Loss Strategy
Introduction to Stop-Loss Orders
Definition: A stop-loss order is a vital tool in trading, particularly in swing trading strategies like those advocated by Mark Minervini. It is an order placed with a broker to buy or sell a stock once it reaches a predetermined price. The primary function of a stop-loss order is to limit an investor's loss on a security position. By automatically triggering a sell or buy order when the stock price hits the specified level, it prevents further loss.
Importance in Minervini's Strategy: Mark Minervini, a renowned swing trader, places a strong emphasis on risk management in his trading approach. For Minervini, a stop-loss order is not just a safety net; it's a critical component of successful trading strategy. He asserts that controlling losses is just as important as securing gains. By setting a stop-loss, a trader can ensure that their losses are controlled and predictable, which is essential in the volatile world of stock trading.
Setting Stop-Loss Levels
• Percentage-Based Stop-Loss: One of Minervini's key strategies involves setting stop-loss orders at a fixed percentage below the purchase price. This percentage is typically between 7% and 8%. For instance, if you purchase a stock at $100, setting a stop-loss order at 7% would mean placing it at $93. This method is straightforward and can be easily applied to any trade.
• Volatility-Adjusted Stop-Loss: Minervini also advises adjusting stop-loss levels according to the stock's volatility. Volatile stocks, which have larger price swings, may require a wider stop-loss order to avoid being prematurely stopped out. For example, if a stock is known to fluctuate by around 10% regularly, setting a stop-loss closer than this percentage could lead to an unnecessary sale. In such cases, a wider stop-loss, perhaps around 12-15%, might be more appropriate.
Practical Examples
• Example with a Less Volatile Stock: Consider a stable stock, XYZ, trading at $50. Following Minervini's percentage-based strategy, you could set a stop-loss at 7% below the purchase price, which would be $46.50. This level ensures that if the stock unexpectedly declines, your maximum loss will be limited to 7%.
• Example with a Volatile Stock: Now, let's take a more volatile stock, ABC, which is also trading at $50. Given its higher volatility, a 10% stop-loss might be more appropriate, setting the stop-loss order at $45. This wider margin accounts for the stock's normal fluctuations, reducing the likelihood of a sale triggered by ordinary market volatility.
In both examples, it’s crucial to monitor the stock performance and adjust the stop-loss orders as necessary, especially in response to significant market events or changes in the stock's fundamentals.
This section of the tutorial underscores the critical role of stop-loss orders in implementing Minervini's trading strategies. By effectively using stop-loss orders, traders can manage risks, control potential losses, and enhance their overall trading performance.
2. Profit Target Strategy
In Mark Minervini's trading philosophy, setting realistic profit targets is a cornerstone of successful trading. This strategy involves a careful analysis of historical data, chart patterns, and specific criteria established by Minervini. The aim is to identify a potential exit point that maximizes gains while minimizing risks.
Setting Realistic Profit Targets
• Analyzing Historical Data: Start by reviewing the historical performance of the stock. Look for patterns in how much the stock typically moves after breaking out of a base. This gives an insight into what might be a realistic target.
• Understanding Chart Patterns: Chart patterns play a vital role in setting profit targets. For instance, the 'cup and handle' pattern can provide clues about the potential upside. The depth of the cup or the height of the handle can be used to project the upward move.
• Minervini's Criteria: Minervini often looks for stocks with strong fundamentals and a history of robust earnings growth. The idea is to invest in stocks that have the potential to make significant moves.
Risk-Reward Ratio
• Definition and Importance: The risk-reward ratio is a measure used to compare the expected returns of an investment to the amount of risk undertaken to capture these returns. A favorable risk-reward ratio for Minervini is typically around 3:1 or higher. This means for every dollar risked, there is a potential to make three dollars.
• Application in Profit Targets: When setting profit targets, consider the potential downside (or the distance to your stop-loss) and set a target that adheres to this ratio. For example, if your stop-loss is set to result in a $1 loss per share, your profit target should aim for at least a $3 gain per share.
Examples
• Example 1: Stable Stock with Moderate Volatility: Let's say you buy a stock at $100, and based on historical performance and chart analysis, you expect it could rise to $120. If your stop-loss is set at $95 (a $5 risk per share), your profit target of $120 provides a risk-reward ratio of 4:1, aligning with Minervini’s strategy.
• Example 2: High Growth Stock with High Volatility: Consider a high-growth stock purchased at $50. The historical data and chart patterns suggest a potential target of $70. If your stop-loss is at $45 (risking $5 per share), then the profit target of $70 gives a risk-reward ratio of 4:1.
In each example, the key is to align the profit target with the calculated risk-reward ratio, ensuring that the potential gains justify the risks being taken. This disciplined approach to setting profit targets is integral to Minervini’s strategy and can significantly influence the success of your trading endeavors.
3. Understanding Trailing Stops
In the context of Mark Minervini's trading strategies, trailing stops are a dynamic and essential tool for managing positions and protecting profits. They are particularly significant in swing trading, where capturing trends and reacting to market changes promptly is crucial.
Definition and Benefits
• Definition: A trailing stop is a type of stop-loss order that moves with the market price. Unlike a standard stop-loss, which remains fixed once set, a trailing stop adjusts as the price of the stock moves in a favorable direction. The trailing stop is set at a percentage or a specific dollar amount below the market price.
• Benefits: The primary benefit of a trailing stop is its ability to secure profits while allowing room for further growth. As the stock price increases, the trailing stop follows it up, maintaining the set distance. If the stock price falls, the trailing stop remains stationary, and a sell order is triggered if the price hits the trailing stop level. This method effectively locks in profits and limits losses without the need for constant manual adjustment.
Application in Swing Trading
• Importance in Minervini’s Strategy: Minervini, known for his precise swing trading tactics, emphasizes the use of trailing stops for capturing the maximum possible trend movement while safeguarding the gains. In swing trading, where the goal is to capture short- to medium-term trends, trailing stops ensure that traders do not exit a position too early during a favorable trend or too late when the trend reverses.
Setting Trailing Stops
• Methods: There are several methods to set trailing stops:
• Fixed Percentage: This involves setting the trailing stop at a fixed percentage below the market price. For example, a 5% trailing stop on a stock currently at $100 would be placed at $95.
• Specific Dollar Amount: Here, the trailing stop is set at a specific dollar amount below the market price. For a stock at $100, a $5 trailing stop would be placed at $95.
• Technical Indicators: Some traders use technical indicators, like moving averages, to set trailing stops. For instance, setting a trailing stop below a 20-day moving average.
• Dynamic Adjustment: The key to using trailing stops effectively is their dynamic adjustment. As the stock price moves up, the trailing stop moves up accordingly, always maintaining the predetermined distance from the peak price achieved.
Summary
In this tutorial, we have delved into the critical aspects of Mark Minervini's exit strategies, focusing on practical and effective methods to optimize trade exits. We explored the Stop-Loss Strategy, emphasizing the importance of limiting losses and managing risks with carefully placed stop-loss orders. The Profit Target Strategy highlighted the significance of setting realistic profit goals based on a thorough analysis of historical data and chart patterns, always considering the crucial risk-reward ratio. Lastly, the Trailing Stop Strategy showcased a dynamic approach to protecting gains while allowing room for potential upside in a stock's price.
By understanding and applying these strategies, traders can enhance their ability to make informed decisions, effectively manage risk, and potentially increase profitability. These exit strategies, integral to Minervini’s trading philosophy, offer a disciplined framework for closing positions, vital for success in the dynamic world of swing trading.
COIN - Reverse Head and ShouldersBullish scenario:
Moving to Crypto Friendly Jurisdiction while simultaneously taking greater market share (from Binance and such);
Catalyst:
SEC lawsuit is dismissed as bogus, designed to distract from banking crisis brewing and scare public from entering the crypto stage, all benefiting Blackrock and Citadel
Required: violent break out above $80 into $120-160 range.
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Coinbase (NASDAQ: COIN) Stock Price Charts Signal Rally To $150Coinbase stock price has picked up aggressive momentum this week, as its rival in crypto exchange Binance is facing some regulatory challenges. As a result, the Coin price has been rising for five consecutive days and reached a 4-month high of $114.4. However, a look at the daily time frame chart shows this recovery is part of a rising channel indicating the asset is poised for further rally.
COIN Price to $150?
A rising channel pattern leas the current recovery trend in COIN Stock. The ongoing recovery trend may witness intense supply at the $135 mark. The 20 EMA could offer a strong pullback to buyers.
The Coinbase stock price has demonstrated a remarkable recovery in November, bouncing back robustly from a psychological support level of $70. Over the past three weeks, this momentum has propelled the asset price to an impressive $115, translating to a 63% increase.
This upward trend is part of a bullish swing within a rising channel pattern, which has been shaping the stock’s recovery trajectory for over a year.
This pattern, characterized by two parallel trendlines, has consistently provided dynamic resistance and support for the Coinbase stock. Currently, the recovery momentum seems poised to continue, potentially driving the price approximately 15% higher to the upper trendline of the channel, around the $135 mark.
Tech weak ahead of thanksgivingQQQ saw downside today. IWM strong ahead of weak dollar.
Yields on watch for wedge breakout
Bitcoin potential Failed Breakout!
Coin marching to holiday targetThis is a chart I shared a while back and the trend is working out perfectly. Coin is meeting my circle target sooner than expected. With the ETF looming, Coinbase designated as the custodian, and binance law suit decided, Coin is looking for a huge upside in the coming year. I have spot that I entered around 40$ and I plan on rolling long term calls all next year. The gold line is the powerful .5 fib.
Even Picasso couldn´t have painted it better - COIN to 180$- update on my last COIN analysis
- since then coinbase stock has indeed consolidated and put in the right shoulder of what appears to be a macro bottoming inverse head and shoulders formation
- target of the formation is anywhere between 170 - 180
- with COIN projected to increase by almost 60% it is likely such a move comes alongside a big fundamental catalyst
In other words: this coin breakout suggests Bitcoin spot ETF approval is around the corner
COINCOIN setting up for its third attempt at breaking this 112-115 area
If it breaks 115 then it has 130 range highs and unfilled 130.15 gap
BTC seems to be cooperating
Coinbase to 500 and there's nothing you can do about itEz money, I got that dawg in me. bookmark this trade and come back within a year.
