Recent ICOs can be good trading candidates. I use - count back line analysis (nod to Daryl Guppy)
Useful when new listings initially flounder or drift to test new lows.
Note the low daily candle and count back 2 significant candles.
Then draw a line to the right handside (green)
Use this marker to offer a buy signal when price moves above line. Confirmation is a close on the daily above this line.
Enter the next day if price holds above the breakout day candle low.
The stop is placed at the base of previous day or breakout day depending on how tight you want to keep your stop(red)
The stop level is then adjusted upwards in line with the trade to lock in profit/protect capital.
Useful when new listings initially flounder or drift to test new lows.
Note the low daily candle and count back 2 significant candles.
Then draw a line to the right handside (green)
Use this marker to offer a buy signal when price moves above line. Confirmation is a close on the daily above this line.
Enter the next day if price holds above the breakout day candle low.
The stop is placed at the base of previous day or breakout day depending on how tight you want to keep your stop(red)
The stop level is then adjusted upwards in line with the trade to lock in profit/protect capital.
Trade active:
Success! Trade is well in to profit. Buy signal was a close above green count back line. Stop loss a close below red line.
See new updated trade idea for notes on staying in trade and how to not exit too early.
See new updated trade idea for notes on staying in trade and how to not exit too early.