As of now, Verge BITTREX:XVGUSD seems to be in a running flat correction to the upside. Said "abc" in formation, could retrace the cryptocurrency all the way to a 0.786 or 0.886 of it's previous impulse. If it does what we expect it to do, all the better for us, as we will then consider taking long positions with an expected margin of over 800%.
From the 0.0064 area, therefore, we will be looking for buy setups, on this pair: watch out for ending diagonal formations, double bottoms and other price action patterns for an entry point on their break. For a more conservative approach, wait for a first impulse to the upside, wait for a small correction of said impulse on the 60min timeframe, and buy the break of said correction with a stop loss beneath it.
In relation to cryptocurrencies, let us remind all traders that any attempt of forecasting based on wave and structural analysis has to be taken in a very conservative manner, as these financial instruments could not have been traded in the markets for a long enough time to consolidate their structure and make a valid projection possible.
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Are you saying the price will drop to point C before rising? Pardon my newness, I am still learning.
TradingClear
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@MFINITI, many thanks for your comment. Yes, according to what we are seeing in terms of structure, it could drop that far (regular flat). However, this could also be a contracting flat, in which case the correction would stop sooner than the 0.05-0.06 level (if it is, a contracting flat, in reality it is sufficient that the price breaks below the (a) level, to resume it's upward swing.
MFINITI
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@TradingClear, How come the price is decreasing? Is it market manipulation by whales or FUD? Thank you for taking the time to explain to me. I appreciate it.
Frederickvc
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@MFINITI, legit question my friend. Looking forward to TradingClear his reponse on this.
If my perspective might be of any added value, I feel like the team behind xvg is a bit slack on its roadmap..
TradingClear
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@MFINITI, we don't much ask ourselves WHY the price is decreasing or increasing, i.e. why the price of a certain commodity or other financial instrument moves in relation with news or economic events. These events are irrelevant to us. As analysts, our objective is to understand price structure in order to forecast what the next movement is, or the next movements are, in the bigger picture, in order to profit from our forecast. News and economic events make a structure complete itself faster or slower, but do not change the bigger picture. Ultimately, we have found that markets are bigger than single events, or of a single country's policy decision. Hope this will help your approach to trading. Best,