DASH SPIKE & LEDGE REVERSAL CRYPTO STRATEGY

Step #1: Dash cryptocurrency price needs to show a steady rise that suddenly accelerates to the upside.
When this reversal pattern is complete, it will resemble a cup with a sharp bottom.
This sharp acceleration usually is the last stage of a bull cryptocurrency market, and it’s followed by a sharp reversal if all the trading criteria for a valid Spike and Ledge are met.
In technical analysis, professional traders also refer to this last spike as being an exhaustion reversal bar that has a high probability of signaling a reversal in the Dash price.
Now, before we can trade successfully, we need to understand that this key climax reversal bar needs to follow specific trading rules.
More specifically, this exhaustion reversal bar needs to follow three rules, which we’re going to highlight next.
Step #2: The exhaustion reversal bar needs to be bigger than the previous bar
Relatively speaking the exhaustion bar, which should be the last bar within the downtrend, needs to be bigger than the previous bars. However, this is not mandatory.
Ideally, the bigger the climax bar is in comparison with the other bars within the bullish trend, the more profitable the reversal pattern becomes.
Step #3: The climax bar needs to develop at a key sup/res level or after breaking a key swing low/high
We can’t stress enough the importance of location in trading.
Many times you’ll notice that a chart pattern will fail, but that’s not because that price pattern has stopped working. It’s often the case that you don’t have the patience for these patterns to develop at the right location.
In order for the Dash cryptocurrency trading strategy to work we need to wait for the exhaustion bar to show up at the right location.
Step #4: The exhaustion bar develops after several bullish impulsive bars
We need to make sure that the exhaustion bar occurs after several bullish impulsive bars.
These impulsive bullish bars will make the appearance of a bullish trend that will trap many sellers once the tide turns. And that’s how retail traders trade the markets, but to trade profitably, you need to trade against the retail mindset.
Step #5: After the upward spike, wait for the market to enter into a short period of consolidation or channeling.
Usually, after the Dash cryptocurrency price had that last spike up the market will take a pause to digest the recent move, and it will start moving into a short period of consolidation or channeling.
Simply, draw two parallel lines to contain this price range.
Now, this is what we refer to as being the “Ledge.”
The Spike and Ledge reversal pattern satisfies all trading conditions outlined above which mean that we can move forward and describe how to sell Dash coin.
Step #6: Sell Dash coin when we break below the Ledge
A short trade is entered on the breakout of the Ledge.
This is an easy entry method, but in order to avoid the short-term noise and the usual false breakouts, we need also to wait for the breakout candle to close below the Ledge.
Step #7: Place your protective Stop Loss above the Exhaustion bar
The initial protective stop loss is placed on the other side of the reversal pattern.
You hide your stop loss above the exhaustion bar.
Step #8: Your Take Profit needs to be two or three times bigger than your risk aka your stop loss.
As a general rule, you do want your take profit to be bigger than your stop loss. This is very important to your long-term survival in this business.
However, you can achieve your profit target goals by using your preferred strategy when it comes to exit the market. We encourage you to experiment different exit strategies and see which one yields better results.
Note** the above was an example of a SELL trade using our favorite Dash strategy. Use the same rules for a BUY trade – but in reverse.
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Comment:

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