I'm a new trader but i've seen and profited from this formation quite a few times. Thought i'd share another possible breakout! Am i right or wrong? You can tell me, but only time will tell.
Buying at these levels are very safe with minimal risk the only problem i see is there is little proof of an upward move or vol coming in. Its basically a simple buy low sell high strategy which isn't bad in any respect but depending on the amount of time you may have and amount of trades you may miss taking this trade. There is nothing wrong with this you can see price is leveling out and if you get an up move the reward will be great. I find time to be the most important factor in my trading and this type of trade there can be a great amount of time pass before you get into profit. also my funds and account being tied up in this trade can lose me money more than i could hopefully profit. Hope that makes sense and as i said i dont disagree with your analysis and if great buying pressure comes in the reward can be amazing!
Playj
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@Playj, here is an example its been 7 days at this point
freshprince
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@Playj What is wrong with keeping it simple? You said it yourself, the risk is minimal. And the upsides are huge. Who cares if you have to wait a couple of weeks, or even months. With these trades youre not allocating a huge % of your portfolio. Hence why you can let it sit there and eventually it will (hopefully) pop.
Playj
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@freshprince, absolutely nothing wrong with that. I think I said that it most likely will work out in your favor. The problem with me taking a trade like that is your just hoping that it goes up with little evidence of it moving up. If you can wait days, weeks or even months I think it will work out for you. But for me personally I don't want my money tied up long term on this trade where I can miss a bunch of other trades and there is no current evidence that it is going to make a move in the near future. If you have enough money and it doesn't matter how long your tied up then its good. But investing in almost any cryptos why they are at the bottom is a good idea. But that's isn't really a trading plan or strategy. Investing low selling high great investing strategy. Guess my only point was there is no proof or evidence that a trade is going to happen from this setup. If your just investing it works. Again nothing wrong with it and like we both said there is very little risk here which is always a plus!!!
freshprince
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@Playj It's a medium to long term trade. Your money isnt really tied up either as the price normally doesnt go much lower, and if it does, you have a stop loss to save your ass just like with every other kind of trade. If you really need the money sell it back for a small win/loss. The money isnt tied up.
I think youre being unfair when saying that there is no strategy or plan behind these kinds of trades. That being said I agree that this isnt a trade that should be on tradingview. The price is resting at a low support. There is nothing more to it
Playj
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@freshprince, sorry my intentions were never to offend you. And keep posting charts it helps ppl as well as I've learned posting charts makes me explain why I'm trading what I'm trading and prevents me from taking bad trades. I wrote a lengthy response earlier and my internet kicked off and its super late so i wont try to write it all out again. But again never meant to sound rude or that you was doing anything wrong just for me personally I'm trading for income with a smaller account at this point so this type of trade isn't in my trading plan at the moment. Keep it up Keep posting and stay profitable! and look at the ripple chart I posted above it wasn't much after you had a 5 percent jump in price so a very similar chart giving you the results you stated!
freshprince
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@Playj, All good, im not mad. Its not my chart either. Good luck trading :)