As we said yesterday in #TechnicalEvening, the weekly close was very bearish and this drop on the opening of the new weekly is not a surprise.
We were long Litecoin from 0.01350 and close at 0.0155 in our paid channel.
Some people will say you missed a significant amount of profit. I would say I made great trade and booked a great profit.
As a trader, never forget to book the profit and reward yourself. I can buy/long it now 7% below my exit price but I wait for the setup to align.
The setup is bullish rejection from 0.0130-0-0140 area. People will say it is too large range. No, it’s not when the target is at 0.0180 or at least 0.0170.
What we need to see is a big up candle on daily time frame bouncing off this range. If that happens, on the next retrace we will take new trade on Litecoin.
Don’t buy it without big up candle on daily time frame because if BTC moons there is always the possibility for altcoins to break the support and drop even more.
We were long Litecoin from 0.01350 and close at 0.0155 in our paid channel.
Some people will say you missed a significant amount of profit. I would say I made great trade and booked a great profit.
As a trader, never forget to book the profit and reward yourself. I can buy/long it now 7% below my exit price but I wait for the setup to align.
The setup is bullish rejection from 0.0130-0-0140 area. People will say it is too large range. No, it’s not when the target is at 0.0180 or at least 0.0170.
What we need to see is a big up candle on daily time frame bouncing off this range. If that happens, on the next retrace we will take new trade on Litecoin.
Don’t buy it without big up candle on daily time frame because if BTC moons there is always the possibility for altcoins to break the support and drop even more.
If someone asks you what an uptrend is, show him/her this chart.
LTCUSD is a perfect example of an uptrend. Step by step, no big corrections, not stop hunts, all the time above both MA (moving average).
Simply said perfect uptrend.
Now, there will be people asking when it will correct?
What if it doesn’t correct and not only continue going up but starts parabolic move up?
The fundamentals for Litecoin are very positive so there is no reason to fight the trend.
Very bullish and I wouldn’t be surprised if we see $200 soon.
LTCUSD is a perfect example of an uptrend. Step by step, no big corrections, not stop hunts, all the time above both MA (moving average).
Simply said perfect uptrend.
Now, there will be people asking when it will correct?
What if it doesn’t correct and not only continue going up but starts parabolic move up?
The fundamentals for Litecoin are very positive so there is no reason to fight the trend.
Very bullish and I wouldn’t be surprised if we see $200 soon.
I am not a fan of trend lines but I have to use one of them because it can be very valuable to this analysis.
If we see a bullish candlestick pattern (bullish pin bar or bullish engulfing) and close above green resistance, there is a high probability that we will see at least test of main resistance at 0.065.
However, if we see a close below the trendline, the potential bullishness will be canceled as long as the broken support is not reclaimed.
The bearish MA cross is something that doesn’t support bullishness but if we see that rejection and a close above support, we will get bullish MA cross that will invalidate the prior bearish cross.
This could be tradable but only after bullish sign. Without that sign, this can go down step by step.
If we see a bullish candlestick pattern (bullish pin bar or bullish engulfing) and close above green resistance, there is a high probability that we will see at least test of main resistance at 0.065.
However, if we see a close below the trendline, the potential bullishness will be canceled as long as the broken support is not reclaimed.
The bearish MA cross is something that doesn’t support bullishness but if we see that rejection and a close above support, we will get bullish MA cross that will invalidate the prior bearish cross.
This could be tradable but only after bullish sign. Without that sign, this can go down step by step.
BCHUSD is facing resistance area. The main resistance for this pair is around 640.
Currently, the price is 30-35% lower so if we see bullish price action on BCHBTC pair, this one can offer profitable trade setup too.
We would like to get a bullish close above first resistance. So far it rejected price a couple of times which is not the price action bullish setup forms.
We would be much more interested if price crosses and closes above the main resistance because profit target would be way better.
Buying or longing now makes sense only if perfect setup forms.
Currently, the price is 30-35% lower so if we see bullish price action on BCHBTC pair, this one can offer profitable trade setup too.
We would like to get a bullish close above first resistance. So far it rejected price a couple of times which is not the price action bullish setup forms.
We would be much more interested if price crosses and closes above the main resistance because profit target would be way better.
Buying or longing now makes sense only if perfect setup forms.
With Greed at 84% (The highest in history), Bitcoin has to go up.
If it doesn’t, there will be a divergence between market sentiment and price behavior.
If the price doesn’t go up, then prepare for mini 2018 bear cycle.
The price has to be affected by the Greed at the all-time high. If it doesn’t, there should be the reason and that reason wouldn’t be bullish.
If it doesn’t, there will be a divergence between market sentiment and price behavior.
If the price doesn’t go up, then prepare for mini 2018 bear cycle.
The price has to be affected by the Greed at the all-time high. If it doesn’t, there should be the reason and that reason wouldn’t be bullish.
Send me some questions about crypto, trading and investing that are not related to technicals.
I will choose couple of them and answer tomorrow morning here in the channel.
Send questions to @CryptoSignalsAdmin
I will choose couple of them and answer tomorrow morning here in the channel.
Send questions to @CryptoSignalsAdmin
A lot of interesting questions came to @CryptoSignalsAdmin. I will choose a couple of them and share the answer with all of you. I hope it will be valuable to you.
What do you think about Facebook’s cryptocurrency Libra?
It is a stablecoin. It will be used to send money through Facebook, WhatsApp, Instagram just like you are sharing photos through these social media.
Because it is a stable coin, it will not appreciate in price just like USDT (Tether). The only entity that will profit from this project is Facebook. They will get the fees, the value of their company will grow so their shares will too.
Shares of Facebook will go up if the project is good but the value of a stablecoin will tend to be the same all the time.
Considering this, it is not a good investment. It is just a payment method like Paypal where you can spend your crypto.
The whole project may bring awareness and make a positive impact on crypto but one more time, if the project succeeds, Facebook will be the major entity that will benefit from it.
It is a stablecoin. It will be used to send money through Facebook, WhatsApp, Instagram just like you are sharing photos through these social media.
Because it is a stable coin, it will not appreciate in price just like USDT (Tether). The only entity that will profit from this project is Facebook. They will get the fees, the value of their company will grow so their shares will too.
Shares of Facebook will go up if the project is good but the value of a stablecoin will tend to be the same all the time.
Considering this, it is not a good investment. It is just a payment method like Paypal where you can spend your crypto.
The whole project may bring awareness and make a positive impact on crypto but one more time, if the project succeeds, Facebook will be the major entity that will benefit from it.
So maybe this is more technical but curious your strategy for taking profits on the way up?
Rather than letting everything ride the wave of you will.
Humbles me to say I didn’t predict the correction in January 18 and NEVER took profits and saw my crypto portfolio move from 21k down to 3k, ugh!!
Only when you close a trade, you will actually make the profit. Most traders live in the fallacy that they will miss something.
If your trade went as planned and reached the target, why don’t you close it and move onto the next one?
By not closing at target, you are hoping that you were wrong and that price can go even more up and make you even more profit. This is an inner game and you have to overcome it.
Don’t compare yourself to anyone because once you start comparing, there will be unhappiness and regret. Seeing all these twitter experts making money will never help you overcome your problem.
They are not experts, they are pretenders. They are feeding their ego and trying to find the next victim for their paid service.
Focus on yourself because that’s all you have. Play a long-term game.
Analyse the market, find the established trend, find the setup in that trend (best would be if it is continuation setup because you do not want to go against the trend) and third confirmation you need is breakout our of your setup.
Once the target is reached, close the trade, enjoy the profit and focus on the next one. Even if you miss a large profit, it’s okay, you made a profit. That’s what counts.
Those that are pretending that bought the dip or sold the top and just pretenders. Buying the bottom or selling the top is not what trading is all about and where the money is made in trading.
Rather than letting everything ride the wave of you will.
Humbles me to say I didn’t predict the correction in January 18 and NEVER took profits and saw my crypto portfolio move from 21k down to 3k, ugh!!
Only when you close a trade, you will actually make the profit. Most traders live in the fallacy that they will miss something.
If your trade went as planned and reached the target, why don’t you close it and move onto the next one?
By not closing at target, you are hoping that you were wrong and that price can go even more up and make you even more profit. This is an inner game and you have to overcome it.
Don’t compare yourself to anyone because once you start comparing, there will be unhappiness and regret. Seeing all these twitter experts making money will never help you overcome your problem.
They are not experts, they are pretenders. They are feeding their ego and trying to find the next victim for their paid service.
Focus on yourself because that’s all you have. Play a long-term game.
Analyse the market, find the established trend, find the setup in that trend (best would be if it is continuation setup because you do not want to go against the trend) and third confirmation you need is breakout our of your setup.
Once the target is reached, close the trade, enjoy the profit and focus on the next one. Even if you miss a large profit, it’s okay, you made a profit. That’s what counts.
Those that are pretending that bought the dip or sold the top and just pretenders. Buying the bottom or selling the top is not what trading is all about and where the money is made in trading.
I would like to ask how to properly use Stop Loss and how to figure out where should i put stop loss? Do i need to set it so i get right risk limit or do i need set it where it makes sanse on chart or combined?
Once you found trade setup, the next thing to do is to see where you can put stop loss. The stop loss has to in the area where your setup will be invalidated.
If you are buying at support, the stop loss has to be below support (give it some space and don’t place it too tight).
Then you are finding an area where the target would be. When you find the target, calculate the risk-reward. If it is profitable (at least 1:2), you have everything ready to open a trade.
The last thing is to calculate the position size. It depends on how much you want to risk per that particular trade. More about this calculation in one of the next posts.
The worst thing to do is to try to make stop-loss fit your risk limit after you predefined your position size. Never do that because you will be stopped out without being invalidated.
Once you found trade setup, the next thing to do is to see where you can put stop loss. The stop loss has to in the area where your setup will be invalidated.
If you are buying at support, the stop loss has to be below support (give it some space and don’t place it too tight).
Then you are finding an area where the target would be. When you find the target, calculate the risk-reward. If it is profitable (at least 1:2), you have everything ready to open a trade.
The last thing is to calculate the position size. It depends on how much you want to risk per that particular trade. More about this calculation in one of the next posts.
The worst thing to do is to try to make stop-loss fit your risk limit after you predefined your position size. Never do that because you will be stopped out without being invalidated.
CME Futures Gap
After I’ve analysed all gaps that happened in last 6 months, more than 90% of them was filled in the next week.
Last weekly close on CME was around $8400. If this pattern will be followed, we will see Bitcoin in 8.5k area this week.
After I’ve analysed all gaps that happened in last 6 months, more than 90% of them was filled in the next week.
Last weekly close on CME was around $8400. If this pattern will be followed, we will see Bitcoin in 8.5k area this week.
#XVG
This coin is slowly dying. It will become interesting only if resistance gets broken and turned into support.
This coin is slowly dying. It will become interesting only if resistance gets broken and turned into support.
#ATOM
At least, it doesn’t look the same as 95% of the other altcoins. This daily level will be interesting.
I would like to see a breakdown and then push back above that would reclaim that level. Then I would be interested in buying this coin.
At least, it doesn’t look the same as 95% of the other altcoins. This daily level will be interesting.
I would like to see a breakdown and then push back above that would reclaim that level. Then I would be interested in buying this coin.
#Elastos
Clear downtrend with serious of lower low, lower highs. Not interested in buying this until some clear move up happens so we can try to catch the second wave.
Clear downtrend with serious of lower low, lower highs. Not interested in buying this until some clear move up happens so we can try to catch the second wave.
#Komodo
It doesn’t look gorgeous but at least it is still in the range that can have bullish character.
It either lagging behind all the other altcoins or it is having an extra strength that keeps Komodo above the others.
Let’s see, if we start nearing resistance, we can start looking for potential breakout and entry point.
Not that bad at all until support holds. If it gets broken, welcome to the club.
It doesn’t look gorgeous but at least it is still in the range that can have bullish character.
It either lagging behind all the other altcoins or it is having an extra strength that keeps Komodo above the others.
Let’s see, if we start nearing resistance, we can start looking for potential breakout and entry point.
Not that bad at all until support holds. If it gets broken, welcome to the club.
#Ontology
It doesn’t look bad but it will if it breaks below support.
If it crosses above 2000 sats, I would look to buy it. At the current price, it is very hard to say anything. Still above the support but not a single bullish sign so buying now would be very risky and without confirmation.
I would rather wait for bullish rejection from the support, cross above 2000 sats and then buy it with a confirmation.
It doesn’t look bad but it will if it breaks below support.
If it crosses above 2000 sats, I would look to buy it. At the current price, it is very hard to say anything. Still above the support but not a single bullish sign so buying now would be very risky and without confirmation.
I would rather wait for bullish rejection from the support, cross above 2000 sats and then buy it with a confirmation.