1. crossed up, but is starting to fade and has not gone into positive territory
2. is in the middle.
4 Hour chart:
1. crossing down
2. showing divergence.
3. resistance. I Adjusted the and we are hitting, I did have this higher, but there is significant resistance at this 500-550 area so it's not a surprise we are moving down.
Buying Scenario if we move down:
I have about a 25% profit on my portfolio this year, while crypto's have moved down more than 50% for the year. We are doing well to say the least and we made out nicely on our last Swing trade, and I want to set up another overall plan going forward and this is what I am looking at. It's hard to say in this vicious bear market if we are out of it yet or whether we get another substantial move up from our first of the 430-450 area. If the market is reversing, it will either happen there or at or buy zone #2 within this channel and . Once my first orders get filled I will be trailing my stops up as the market moves to lock in profit. We'll watch it close at that time to determine whether we should load up more or let our Martingale Strategies take hold if it moves down.
If you don't know what the martingale strategy is, make sure you read up on it! I will stagger my buys something like this:
Buy zone 1: 10%
Buy zone 2: 10%
Buy Zone 3: 20%
Buy zone 4: 30%
Buy Zone 5: 30%
My first buy I am looking to get in at this 430-450 area depending on what it does. Remember, having an over arching plan in place before we start trading allows us flexibility. Before bitcoin dropped all the way down to $6,400, we were able to flip it twice. More importantly this strategy gives us OPTIONS. We are able to and adjust as the market does, go in heavier if need be, etc.. If the market starts dropping like a rock, we have a solid plan in place to play it. Just as we did last time. Going in from 600 down to this 375 level and out with profit.
Buying Scenario if we move up.
We need to test these resistance zones at 575 or the 600-625 in order for us to be buyers on pull backs. Once those levels are hit, I would be looking to buy in this 500-525 zone for a continuation move.
Until we move either up or down from here, we are in a no trade zone.
Happy Trading. Don't stress, don't use leverage and pick your points!
If you are new to reading my posts, please consider following me to stay updated.
My buy zones are what's important, I try and identify points of inflection and you can structure your plan however you want.
Many traders when they see a stock or crypto making a new high (or a recent high), they ignore the trend and instead they wait for a pullback. They convince themselves it will pull back so they wait by the side of the road for the parade to come around again. They always have to buy on the cheap to convince themselves of their expertise in timing. Certainly there are entry points to getting into 10 baggers, but they seldom give back more than a few percent at a time or they will breathe for a spell while they catch their breath for another run up.
For me, if a stock or crypto that had a strong bullish trend suddenly dropped 20%, I wouldn't buy it, I would sell it. It would likely trigger a stop and I would wait to see if a bear trend had developed or if the bull trend will continue. I wouldn't buy a stock or crypto just because it dropped 20%. If I did, I would be buying ETH all the way down from the top of $1400 down to $360. I saw Jim Cramer do that on live TV in 2008 at the start of the crash when someone called in and wanted to know if Bear Stearns was a good buy at $80. He said sure, look it came down from $120 so its price is now really discounted and is a definite buy. He rang is buzzers to confirm it was a buy. I wonder how that caller felt when in a few days Bear Sterns stock was selling for $2.
I would much rather determine the direction of the trend and embrace it. When the trend breaks down I would sit by the side of the road and wait for the direction to be determined by TA AND confirmed by price before getting back in. I don't have the bravado to catch a crypto that has fallen 20% and expect it to bounce back up. I've seen it keep falling far too many times to get suckered again. That's just how I see it. I hope this has been of use to someone.