The JLR news has caused a clear impulse upwards and potentially can cause a elliot wave sequence to trade off. We can try to trade wave 3 or wait for wave 5. Long entries with current BTC uncertainty could be risky but IOTA looks due for a recovery.
We'll be looking for support off the 1H EMA200, depending on the timing this could cause the reversal from the current wave 2 at around the 0.382 retracement. It would make sense to ladder in a buy between there (5.5k sats) and the next support level at 5k sats (sits in line with 0.618 retracement). Ideally we look for some bullish divergence on the 1H to signal the reversal before buying in (we got the bearish divergence on the 1H to top out the wave 1).
As we go up the next wave we want to see a solid break through the 4H EMA200, retrace and hold that as support, in that case we have a much more solid bullish position in the medium term. The lower risk trader would wait for that to happen and the completion of a wave 4 before entering the trade for wave 5.
NB trade entry point and SL shown is not the full picture for a laddered entry.
We'll be looking for support off the 1H EMA200, depending on the timing this could cause the reversal from the current wave 2 at around the 0.382 retracement. It would make sense to ladder in a buy between there (5.5k sats) and the next support level at 5k sats (sits in line with 0.618 retracement). Ideally we look for some bullish divergence on the 1H to signal the reversal before buying in (we got the bearish divergence on the 1H to top out the wave 1).
As we go up the next wave we want to see a solid break through the 4H EMA200, retrace and hold that as support, in that case we have a much more solid bullish position in the medium term. The lower risk trader would wait for that to happen and the completion of a wave 4 before entering the trade for wave 5.
NB trade entry point and SL shown is not the full picture for a laddered entry.
Comment:
You can see where the 4H EMA200 will be sitting right at the 6.2k resistance line. A trader could wait for that to be broken with volume if they didn't fancy the risk of laddering in to find the bottom of wave 2.
Comment:
1D EMA200 - we've been below it since June '18. Likely a strong resistance point, perhaps the top of wave 3 and maybe coinciding with the 8.1k resistance. Once we have the bottom of wave 2 we can put a pitchfork on it and try to get an idea of where the rising channel may sit for this sequence.
Comment:
We reached the original planned start of trade entry, but no sign of bullish divergence, so I'm just not excited by this right now. I think we will drop from here further and hopefully find support at the 5.2k level. If it looks like we are making a turn there then perhaps worth an entry.
Comment:
Not being fooled by this as the break up, I think the wedge is just adjusting shape. waiting.
Comment:
Still no bullish divergence, still holding back on this one. I think we can come down to the next resistance level, that's the 0.786 retrace or golden pocket depending on where we measure the start of the impulse from, there should be a good bounce from there.. if we get a hard bounce then maybe we can enter as it comes back up. Problem is that I think two bounces are needed to get bullish divergence as the RSI has not been rising.. needs more time, not as good looking as the NANO trade I'm also looking at.
Comment:
Got a really nice reaction from this zone of resistance. To make this a good trade for me we need to go horizontal for at least 3-4 hours and recover RSI upwards, then drop down for a lower low with a similar bullish reaction, add bullish divergence and we have a nice recipe for the next leg up.
Comment:
Still developing nicely, need one last drop, entry could be as low as 4.8k.
Order cancelled:
I don't like the way this crept horizonally out of the wedge then took a big drop. I am taking the NANO trade instead of this one. Not sure why IOTA continues to be so undervalued given the news, it is one to invest in for medium-long term but this trade looks too risky. It might go but there is just no volume right now to support it.