So the idea is to draw the correct resistance and support lines, why is it so important? If you get them right you will know exactly what will happen next, everything will work out like magic. But is there a right and wrong? Isn't it subjective? Nope, not even close. Computer algorithms -- which control the bulk of the trading capital -- are programmed with the knowledge and the help of trading experts. The same system has worked in other asset classes so it is used here as well. If you figure out the lines of support and resistance you'll know which move is the likeliest to happen next. First, you have to find the primary trendline, then the secondary and lastly the minor trend. Now that you know this let's dive into XRP.
In this chart, you only see the secondary and the minor trend, the primary is too large to show, with that said the primary trendline shows XRP going slightly down, unlike BTC which is showing a strong uptrend primary, this should be a cause for concern for Ripple traders. The secondary line is showing a pretty aggressive downslope which puts the breaks on for me. The minor trend which is over, for now, made an impressive run. It is now at the very top of the secondary downtrend channel, not a good time to buy for the short term holder, why? We never buy tops. Ripple should be rejected soon by the top of the channel. The best approach if you are interested in XRP is to watch and see if it goes above my redline (which is the top of the channel) and if it does then buy on the pullback but put this trade on a tight leash.
Think of BTC and alts as a guy (BTC) out for a walk with his dogs (Alts), the good times are going to last for the dogs as long as the guy wants to keep walking, as soon as the guy is done, the dogs may be running around having a great time but their time is up and they now have to go back. If your style is short term trading, you must keep your trade on a short leash, when BTC is done ranging or going up, the Alt you have your money in is coming back down, period.
NOW, THE LEGEND;
Support trendlines are green
Resistance trendlines are Red
Horizontal support lines are white, the thicker the stronger the support
50 Moving Average is yellow
200 Moving Average is white
THE TREND: Going up
THE OUTLOOK: Since XRP is at the very top of a channel you wait and see if it will go up or back down.
In this chart, you only see the secondary and the minor trend, the primary is too large to show, with that said the primary trendline shows XRP going slightly down, unlike BTC which is showing a strong uptrend primary, this should be a cause for concern for Ripple traders. The secondary line is showing a pretty aggressive downslope which puts the breaks on for me. The minor trend which is over, for now, made an impressive run. It is now at the very top of the secondary downtrend channel, not a good time to buy for the short term holder, why? We never buy tops. Ripple should be rejected soon by the top of the channel. The best approach if you are interested in XRP is to watch and see if it goes above my redline (which is the top of the channel) and if it does then buy on the pullback but put this trade on a tight leash.
Think of BTC and alts as a guy (BTC) out for a walk with his dogs (Alts), the good times are going to last for the dogs as long as the guy wants to keep walking, as soon as the guy is done, the dogs may be running around having a great time but their time is up and they now have to go back. If your style is short term trading, you must keep your trade on a short leash, when BTC is done ranging or going up, the Alt you have your money in is coming back down, period.
NOW, THE LEGEND;
Support trendlines are green
Resistance trendlines are Red
Horizontal support lines are white, the thicker the stronger the support
50 Moving Average is yellow
200 Moving Average is white
THE TREND: Going up
THE OUTLOOK: Since XRP is at the very top of a channel you wait and see if it will go up or back down.
