Hey traders! I want to wish you Happy New Year. I really hope I can keep learning from you, I have had the opportunity to meet amazing people here, and I want to thank you all for your great support :)
I want to share with you my first Monero`s analysis (XMRUSD), where I identified a long term tendency line in the Logarithmic Price Scale (if you don`t understand this concept, please go to the end of this post where I explain it).
As you can see, Volume has been increasing throughout all the tendency line, which is a fundamental signal for a bullish market, and therefore we can trust it will continue to keep moving upwards. I also want you to notice the current downtrend tendency where the price is moving. This tendency is important because once the breakout has occured, it will be exactly the point where price will start moving to our both targets. If you are interested in Monero`s market, I recommend you to wait for this breakout signal, and MACD´s change of direction (from down to up). If this breakout doesn´t occur, we have to wait for a bounce in the tendency line. I will update this post continually :) MY ORDERS BUY STOP: 340
TakeProfit1: 395 TakeProfit2: 480
Remember numbers can vary depending on your risk profile and price expectations. The numbers I propose should be use as a reference :)
What is a Logarithmic Price Scale? Well, in first place you have to know there are two different ways you can observe the charts: arithmitc scale and logarithmic scale. The main difference between both methods, is that in the arithmitc scale, the vertical price scale indicates there´s a same distance for each price variation unit. On the contrary, logarithmic price scale shows the prices based on porcentual increments -or decrements-, that means that the distance between 1 and 2, is exactly the same distance between 5 and 10. Link to image: chilebolsa.com/foro/uploads/370_ela1.png
Are you interested in Technical Analysis? I recommend you the John Murphy´s book: Technical Analysis of Financial Markets. It is a great introductory book.
If you find this analysis helpful, don't forget to follow, like and comment. I use to upload new analysis every day :)