📉 COIN | New High, No New Highs, Shakeouts & Double Top

SHORT traders are surely having problems with this stock... We caught the bullish wave early I have to say and that's one of the reasons why we are bearish, because we only buy low/near support.

➖ After going up, a stock moves down; no exceptions.
➖ After being bullish, we turn bearish; based on market conditions.

I will try and explain my thinking so that we can create a better bond, improve our communication and how much benefit we can extract from these charts and this information.

Yesterday COIN produced a new high based on session wick.
The session close ended lower compared to the last wick high.
Trading volume is low.

Let's say you are super bullish in early March 2024 and here we can see that being bullish early March was the right choice; for us, it isn't and I will try and explain why.

If you are day-trading or scalping or simply have a well though out plan, then this post will not be of use to you. If you are a beginner trader and are looking at Cryptos and stocks, this might be useful.

When we are super bullish, we buy normally with hopes of obtaining big gains. We can be super bullish in early March and yes COIN moves ahead by 30%, but what is sure to follow is a very, very strong retrace or correction; did you sell?

Sometimes we can be bullish correctly but expecting to see 50%, 80% or even 100% growth or more. While this is possible long-term, short-term prices are set to drop and that's why we go bullish only at the bottom, bearish at the top.

➖ One can be bullish, buy, see prices grow but fail to sell.
➖ The stock continues to grow for months but still it won't meet our targets.
➖ Our targets fail to meet and the next wave starts...

So COIN did move ahead but trading volume is low and we have clear top signals all around... Holding this stock for short-term gains would be the wrong move because it already grew so much. The chart is pointing lower at the same time based on a wick higher high, a 5-up wave pattern and a clear double-top.

Knowing these signals, we focus solely on the short side.

Not that it cannot keep on growing but that the upside is very limited at this point.

When I see I chart like this one I would rather (1) sell or (2) wait for prices to move lower, develop a support zone, buy at this support zone and ride the entire bullish wave up. In fact, we are waiting for the correction before bullish again long-term to enjoy a major ride in late 2024 all the way to mid-late 2025.

Stay away from Coinbase, that's my view.
Remember to do your own research. This is not financial advice.

Namaste.