From our Trade posted yesterday and the follow up.
The Dash buy order triggered and though it held up for a short time, the trade fell apart quickly. The position was closed at 438 for a 5% loss. This is the risk we take not trading out of deeper support levels, and the reason we tagged this an "aggressive" trade. Once the 445 support level gave way, the pullback was relatively swift, as if the rug was just pulled out beneath our feet.
Technical:
The setup came from a pin bar formed at the 445 level after retracing briefly to the 413 level which is the 0.50 retrace of the overall bullish swing. Like a "rising tide raises all ships" so does an "outgoing tide lower all boats". The market overall pulled back shortly after and Dash was no exception stopping out our trade.
Dash is currently dropping quicker than bad guys in a Jet Li movie, breaking the 421 and the more recently posted 405 and 391 levels. As mentioned a couple weeks ago 382 to 421 level is a likely reversal zone, with 367 a being an extreme level of support. There are two extension levels between 391 and 405 from the previous bearish swing that are of interest and an area to look for a bullish reversal and a completion of corrective leg "Y".
Summary: As we look for the market to consolidate from the corrective pullback, we are simply in a "no trade" zone as I posted on Bitcoin this morning. However, with that said there are several coins on the radar and we are looking to add a few positional trades out of these lower support levels providing more conservative trade setups.
Why is this a no trade zone? Deep in a support level seems like the perfect entry point given the right signal. Please elaborate if you don't mind.
goldbug1
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@theredbaronZ, Thank you for the comment, I should have not used the word zone. You are correct if there is a reversal signal then we would issue a trade.
goldbug1
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@theredbaronZ, This was an update from the post on SC