Let's look at the 4H chart. Based on this time frame we can see that the market moves in a down trend. Price broke the uptrend line 1 and dropped lower. It was a signal that probably the market was going to move to 200.00 support level. If price reaches this level, we'll have to watch with more attention on price action near this zone. The key level is 200.00 and if the market can break it, we'll be able to see down movement to the uptrend line 2. But if price reverses from this level, we'll have great buy opportunity. Buying from this support will allow us to make huge profit. If you already have long trades opened on levels lower than 300.00, you can hold them or just close a part for buying near the support zone. Don't forget that all new buy trades must be opened only after getting confirmed reversal signals. For confirmation that the down trend is over, the market must break the downtrend lines. When we have a such situation, we'll be able to add new buy trades based on a breakout signal.
Kommentar
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The market falls to the key level. Watch for price action near 200.00 level. If price reverses, we'll have a new buy signal.
I had draw uptrend line similar to your line 1, but a little lower, so that it touches minimum prices at the last two major crashes. See the image in the link below. The price bounced off this line few times and is still holding above it. Do you think it is a valid uptrend line to consider?
habibihamoodi
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@voldemarz, why didnt u include the $0.10 flash crash? XD
akshaypawar123
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Thanks for your insights @DLavrov Your tips are always helpful.
Could you point me to any article which teaches how to identify uptrend/downtrend lines?
turboLuck
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@DLavrov I think we have a buy signal. If we buy now around 205 - 215 level, what kind of level should we think to sell? Around 260 resistance?
edavidga
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Do you think that it´s time to buy at this price actually? or we have to wait to buy, thanks a lot.
cryptocrisp
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hi D, just common question. is there any tip to take profit? I usually follow most of your trading guide . it went well as per predicted in the beginning , but unfortunately it went oppositely after holding some profit. thanks in advance for kind tips
SusNyNy
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Got in at $187 before reversal. If there is further market correction, will pick up more on next dip. @DLavrov , really great info. Much thanks for doing the legwork!
saschaberer
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according to poloniex it requires over 8k to drop below 200 and that same amount gets you to 295 upwards. so would this be a good moment to buy even if it would fall below 200. can i assume it wouldn't go much further that around 180 or so or is there potential to drop a lot further?
AlamoZ28
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@saschaberer, Remember, there's still a market wide correction, and TA =can't account for panic. BTC is still only entering it's correction and will effect everything as it does.....ETH @ 150 is not out of the question.
saschaberer
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@AlamoZ28, It's just curious why people want to spent a lot of money to hold a position just to sell it again before it reaches the price. Often you see a large amount below and above the current price with small price changes in between. would this be the same person making more money with the small amounts than it would cost to hold the large sum positions?