We posted back on Sept 6th a nice setup for a short term day trade out of the consolidation box that resulted in a nice 8% +- gain if you made it. But we also warned that it was still correcting and though it held on the resistance line for a short period of time it has since corrected as we anticipated. But today I looked at the chart and I like what I see. A potential day trade setup. Another sort of rounded bottom which often is a signal for a trend change and is forming the ole cup and handle pattern. Again it's not the pattern that's important it's the trend creating it that is.
Anyways this is a trade I will be looking to make today. The first in a while, but being patient often pays off.
There is a great comparison on the RSI where we bottomed, dipped to the 50 and headed up for a nice 30% gain. Now I did not make this trade, I'm merely pointing out the pattern. We know patterns often repeat so we look for these patterns and opportunities to trade them.
I have posted my setup for the trade. However as you know it's difficult in short day trades and this is not an auto trade. I do not like auto trades to begin with but this is definitely NOT one to autotrade. So if you are just learning to trade either paper trade or attempt this trade use a very small portion that you are willing to throw away. If you seen any of the daytrades I posted on my losses were close to nil! on a $2000 trade losing $10 is nothing. I'm not doing $2000 here but you get the point.
I will be monitoring the typical RSI and HMA's on the 5 minute chart once the trade signals, and though I have a target level of around 54 this is a trade that must be monitored from start to finish. This is not something I could provide updates on as there are different variables that I will be looking to exit, but obviously the RSI and HMA's will be key and since we are looking at a 5 minute chart during the trade, updates would be impossible. But for those of you wanting to dip into this style of trading using a very very very small portion of your trading account, this is a nice setup. What is nice about cryptos you can experiment with $10 trades. In the stock market the fees would kill you.
Obviously I am watching for a breakout to the upside using the RSI and HMA's showing positive slope then divergence. It already broke up and pulled back so I feel it's highly probable the next breakout will be to the upside. But you as a trader need to use your judgement and not mine. We all have different styles of trading and you should develop your own.
Good luck in the pits today, patience has paid off and we are seeing some nice setups and due to our money management have a bankroll to trade!
Kommentar
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And how that played out is the reason we do not autotrade!
Man, I have watched crypto conference by XBT in Poland when they have participated.
They have openly and frankly admitted that they have nothing and the only success so far was a successful ICO funding and marketing endeavours .. face palm.
IMHO you can easily count them among the other failed ICO projects. But please go ahead if you dare. But better make some research.
goldbug1
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@ALTER.daemon, To be clear and maybe I should have been more clear in the article. This is soley a trade, fundamentals do not matter. It's in and out trading the movement and not investing for the future.
Thank you for the comment, I am skeptical on most altcoins as going through the dot com bubble 90% of those companies failed, there was even a speculative etf that held most of these and it went from 100 to zero. So though I have a portfolio just for these types of coins it's a very small percentage of my holdings. GEO PTOY STRAT QTUM and a few others, but in very small amounts.
alter.daemon
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@goldbug1, Yes, I know, it is a short-term trade.
I just took the opportunity to share my direct insight regarding the project with people reading your posts ;)
Cheers
omeega
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@goldbug1 I liked the set up on this one and was in it... got stopped out by bitcoin exploding, but thanks as always for the analysis. Fortunately, since I was monitoring the markets I was able to dump at a small loss and simultaneously load up on bitcoin at 5700 :)
goldbug1
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@omeega, That is how it is done, that's textbook trading there. You see a signal, you get out and go with the money flow!! I'm impressed!
tcbtcb
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HI goldbug1,
what HMA do you use for 5m TF and 1h TF?
Thanks for you charts, keep it up!
goldbug1
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@tcbtcb, Normally 8 and 16 but I will adjust it. That's 40 and 80 minutes of data.
They have openly and frankly admitted that they have nothing and the only success so far was a successful ICO funding and marketing endeavours .. face palm.
IMHO you can easily count them among the other failed ICO projects. But please go ahead if you dare. But better make some research.