Quick Numbers: - Buy at 40k - Sell conservatively at 88k
Trade Duration: - Expecting to take 10-14 weeks.
Reasons: - Looking on the weekly chart, we are at a strong green support line. - The Stochastic RSI is incredibly over sold. - The RSI is at the same strong green support level as previous lows. - The MFI (not on this chart) is also at a strong support level.
What everything represents: - Green line represents STRONG support (which we are currently at) - The 2 yellow lines represent a consolidation zone. I'm expecting the price to go from 40k to 75k back down to 58k up to 92k down to 75k back up to 110k however I am not going to be swing trading this, as I am trying to secure profit and am not taking any of these risks. - White line represents a temporary resistance level that will likely be broken through after a week to three weeks of waiting. - Red line represents the highest resistance level.
Why I am selling at 88k (I bought at 46k): - 110k is a huge resistance and a lot of people will likely want to sell here (may not be able to get sell order fulfilled) - Large even number at 100k. A lot of people again will want to sell here, so you should undercut. - 92k is a descent resistance level for a temporary time. I'm selling at 88k to secure my profits and move onto the next coin.
BONUS: - All of the circles in price action represent areas of support and resistance, and if you look at the RSI, the line reaches support/resistance at the EXACT same time that price does. - Also, each LEVEL of support/resistance directly correlates between price and RSI. - All of the red price resistances can be seen at the red RSI resistances. Same with yellow and green. - If you look at the cycles it takes for price to go from swing high to swing low, it takes 16-17 weeks.