I will outline the "buy signal(s)" I will use as confirmation to go long. Waiting for confirmation doesn't always get you in at the perfect price. But attempting to catch the falling knife is never a good strategy, even if you succeed sometimes... In the long run, waiting for confirmation is best practice. (Especially if you also trade non crypto assets)
1) Right now, my moving averages are squeezed together as you can see. We want the green line to be above the red line. And we want BOTH to be above the blue line.
The bigger the space between the green/red lines are from the blue line, the stronger the current trend is.
2) Price has broken out of the descending wedge (purple) and returning to meet it again. Moving above the high of the breakout confirms it.
3) The current descending channel (red) must be broken. This will happen with the completion of number 2) above.
FAQ:
Q: What happens if one of these criteria isn't met?
A: We continue to wait. There are plenty of other assets to trade in the meantime, so there is no need to take unnecessary risks.
Q: Are you saying this will definitely happen and that we can buy soon?
A: No. You should prepare for what you think can happen next, but never assume that it will.
Q: Is the blue arrow the target?
A: No, I just drew that to reference the price going up for people who dislike reading :)
Q: Why should I trust your colored moving average lines? Do they ever lie?
A: Look at when the price broke above the descending triangle on the chart. It looks like a sharp move up. The Green line shot above the red line.. But guess what. The red line was under the blue line, so we knew it was not time to buy. My MA's don't lie!
Feel free to ask any questions. I reply to PMs as often as I can even though I only post 1 chart a week on this platform (when I remember)
1) Right now, my moving averages are squeezed together as you can see. We want the green line to be above the red line. And we want BOTH to be above the blue line.
The bigger the space between the green/red lines are from the blue line, the stronger the current trend is.
2) Price has broken out of the descending wedge (purple) and returning to meet it again. Moving above the high of the breakout confirms it.
3) The current descending channel (red) must be broken. This will happen with the completion of number 2) above.
FAQ:
Q: What happens if one of these criteria isn't met?
A: We continue to wait. There are plenty of other assets to trade in the meantime, so there is no need to take unnecessary risks.
Q: Are you saying this will definitely happen and that we can buy soon?
A: No. You should prepare for what you think can happen next, but never assume that it will.
Q: Is the blue arrow the target?
A: No, I just drew that to reference the price going up for people who dislike reading :)
Q: Why should I trust your colored moving average lines? Do they ever lie?
A: Look at when the price broke above the descending triangle on the chart. It looks like a sharp move up. The Green line shot above the red line.. But guess what. The red line was under the blue line, so we knew it was not time to buy. My MA's don't lie!
Feel free to ask any questions. I reply to PMs as often as I can even though I only post 1 chart a week on this platform (when I remember)