I've been hearing about COTI for a fair while now but my focus has been elsewhere. Now that I take a closer look, I wish I had paid attention sooner! If you are bullish on the Cardano ecosystem, this might be one to look into as they seem to have some close ties to ADA. COTI has had an amazing run since the COVID lows achieving a 20x but it looks like there could still be some gas left in the tank.
Key points:
Appears to be in the 3rd wave of the Elliott count
Large drawdown of 51% to invalidation so position sizing is important
Upside to 3rd wave target is 550% giving an excellent Risk:Reward of 1:10
3rd wave target $1.34
4th wave entry $0.30
5th wave target $3.23
Invalidation at $0.098
Never Trust. Verify. D.Y.O.R. Not Financial Advice Just an Observation. Technical Analysis is not about being right, it's about increasing your odds. Be prepared to be wrong. Risk management is key. Capital preservation above all else.
Trade closed: stop reached
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Price dipped below wave 1 high, trade has been invalidated.
invalid below 9 cents? would be a bit late for a stop loss at that point, don't you think mate?
TribeWriter666
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@darth_bitcoin, Haha I guess it depends on how you trade. And this is why I mentioned that position size is important. I think most people would agree that between 1-3% is acceptable risk. So if you calculate the risk as a % of portfolio and size your position relative to the potential loss, zero could be your stop.
For example lets say you have a 10k portfolio and your risk tolerance is 1%. If you take this trade on the 3D timeframe you could invest ~ $200 with a stop at -50%. Since the trade identified here has a Risk: Reward ratio of 1:10 you would be aiming to risk $100 for a potential profit of $1000.
I'm certain there's tighter stops if you're trading the lower timeframes. However you would also be trading based of a different analysis. For this analysis on this timeframe $0.098 is the invalidation level. Obviously there were way better entry's but I only just seen this the day I posted it. And since there is still a 1:10 on the table, with correct sizing its worth the risk imo.
How would you trade this?
darth_bitcoin
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@TribeWriter666, Thank you for the great explanation. I was in near the bottom just over .03 cents, but for your position, this is probably the best you can do.
TribeWriter666
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@darth_bitcoin, No problems at all. Nice work bro, well done on the early entry. Are you in anything else?
darth_bitcoin
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@TribeWriter666, I'm considering DIA dia-data. Good news, divergence in volume and price, Oracle for DeFi, solid team with decent github code activity. Finally, a lot of people seem to have already lost money buying dia at higher prices. Whales seem accumulating at current prices. All in all, it is a decent idea to me
TribeWriter666
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@darth_bitcoin, I agree, looks good. Nice volume coming in on it. Low MC and looks like it has potential for sure. Thanks for bringing this back to my attention.
polatates20
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@TribeWriter666, still valid mate ? lots of news coming ıf btc stable ı think we highly reach that area 1,3 what you reckon
TribeWriter666
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@polatates20, Sorry I missed your comment- Yes its still valid; needs to hold that wave 1 high- this count is invalidated if if does. I think everything will get a decent bounce. But I'm prepared to be wrong..
ADDYCRYPTOLEARIN
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bro its going for support right ?so buy there or not
TribeWriter666
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@ADDYCRYPTOLEARIN, The closer it gets to that line the closer invalidation gets- but this is good because it means there is an obvious place for the stop-loss.