Last night we went over the EW TA on GNT and whether you agreed with my count or had a different count shouldn't really matter at this point. I think we can all agree that the cycle had ended, and we were waiting on our indicators to tell us which direction the market is headed. Last night provided that direction, almost. We have received an early signal but often early signals rally and fail. We must keep this in our mind, especially with such emotional assets. Why do I say emotional. Many of you reading have been into coins for some time, it's a passion, you spend hours researching, it's a cult following, it's very similar to Apple or Amazon. But here is why many investors often fail even when the market is set to boom (at least in my opinion). You let your emotions trade for you! Someone posted on the GNT blog last night, "why do people buy at tops and sell a bottoms?" It's simple they trade on emotions and impulse. When you feel the desire that you are missing out and just have to get in, or the world is ending and you better get out, that's impulsive investing based on emotion. Most don't even try to read a chart they just see direction. This is why we are better at buying the top and selling the bottom, then vice versa. Control emotions, is the most important aspect to money/trade management.
GNT has provided the first signal we may be entering a new bull market, the breakout. So do we buy in?
I get a lot of questions - Should I buy right now? When is a good time to buy? This is a very difficult question to answer as there are so many variables, Are you investing or are you trading? Are you just scalping a few bucks on a run? Are you trading around a core position? Are you adding to a core position. Are you just trading the charts? There are several more but you get the point. It depends on your ends, and the ends will determine the means to get there. More importantly we must keep in mind that these are very popular types of trading and we can use them to our advantage.
When I look at a chart I ask, where would I buy and sell if I was scalping or day trading. These are usually the first in and it sets off the emotions of the average investor to buy. Yes that's how it works. I look for key levels as if I was scalping or daytrading and label them. This is why you see me speak of a breakout and retest of a level. I want to see not just what scalpers are doing, but if there is "solid trading" and long term money coming in as well. I want to see if the whales are buying here. This is why you can buy the initial breakout but must keep tight stops and monitor closely and be happy with a 1% gain or 1% loss. But if you want to add to a position, you MUST see this leg up is supportable with fresh money.
I labeled the chart where the new cycle has started. I also kept the consolidation box added yesterday. The blue and red lines are my short term trading levels, the green line is critical. Not only is it several previous support, resistance and a consolidation levels, but it is the first fibb extension level of the overall correction. Nice! It never fails to see this stuff line up almost perfect,(because most trade on emotions). It is a solid key level. I also added the RSI adjusted for this time frame and coin. I do not have to look back very far to see where the bull peaked. We are at that level. So though we have early signal on our chart (the breakout), we need additional confirmation this is the real deal from a solid break or retest of the level, AND we need the RSI Bull signal to trigger. This is still a bear. I need to see either solid movement through the Green support or a retest and a follow up and the RSI break 80 to confirm a reversal.
Good luck in the pits today!
GNT has provided the first signal we may be entering a new bull market, the breakout. So do we buy in?
I get a lot of questions - Should I buy right now? When is a good time to buy? This is a very difficult question to answer as there are so many variables, Are you investing or are you trading? Are you just scalping a few bucks on a run? Are you trading around a core position? Are you adding to a core position. Are you just trading the charts? There are several more but you get the point. It depends on your ends, and the ends will determine the means to get there. More importantly we must keep in mind that these are very popular types of trading and we can use them to our advantage.
When I look at a chart I ask, where would I buy and sell if I was scalping or day trading. These are usually the first in and it sets off the emotions of the average investor to buy. Yes that's how it works. I look for key levels as if I was scalping or daytrading and label them. This is why you see me speak of a breakout and retest of a level. I want to see not just what scalpers are doing, but if there is "solid trading" and long term money coming in as well. I want to see if the whales are buying here. This is why you can buy the initial breakout but must keep tight stops and monitor closely and be happy with a 1% gain or 1% loss. But if you want to add to a position, you MUST see this leg up is supportable with fresh money.
I labeled the chart where the new cycle has started. I also kept the consolidation box added yesterday. The blue and red lines are my short term trading levels, the green line is critical. Not only is it several previous support, resistance and a consolidation levels, but it is the first fibb extension level of the overall correction. Nice! It never fails to see this stuff line up almost perfect,(because most trade on emotions). It is a solid key level. I also added the RSI adjusted for this time frame and coin. I do not have to look back very far to see where the bull peaked. We are at that level. So though we have early signal on our chart (the breakout), we need additional confirmation this is the real deal from a solid break or retest of the level, AND we need the RSI Bull signal to trigger. This is still a bear. I need to see either solid movement through the Green support or a retest and a follow up and the RSI break 80 to confirm a reversal.
Good luck in the pits today!
Trade active:
Our Key level #2 just lined up with the retracement. You could buy 1/2 at A and the other at C if your trading. If you investing you could buy A with a stop loss at .00008538