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AlanSantana
Mar 1, 2022 3:20 PM

Lisk vs Bitcoin | Reading The Chart Signals 

Lisk / BitcoinKraken

Description

We are going to be focusing on the chart signals for LSKBTC.

1) We have a Falling Wedge Pattern (blue).
2) In this same pattern we also have a broken downtrend line. You always have a downtrend line with the falling wedge.
3) Long-term higher low (Jan. 2021 - Feb. 2022).
4) Volume breakout.
5) Break above EMA10/EMA50.
6) Entire Cryptocurrency market going bullish.
7) MACD above zero.
8) RSI at 64.
9) Bullish divergence MACD & RSI (Feb.)

All these are bullish signals.
There are no bearish signals currently on this chart.

More signals can be extracted from higher/lower timeframes as well as different charting systems.

We use a combination of signals rather than just one before making a call.

We look for at least 3-5 strong bullish signals, the rest we can ignore.

If we see mixed signals.
If we have mixed feelings.
If doubts creep in while reading a chart, we move on.

There are always more opportunities.
So anything that causes doubt means that the chart setup isn't strong enough.

Even with 100 bullish signals and 100% certainty/confidence, we still map the bearish scenario, support levels and when trading use a MANUAL stop-loss.

Namaste.

Comment

First target hit... More to come.
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