Hey everyone,
Here we have another easy and low risk play on Matic. Currently, this significant support line in green is being retested from the previous surge upward. If price closes above this horizontal line, expect another push towards higher resistance lines. If the price closes below this line you can assume price will return to the green paralell channel below it.
This position is low risk because you can simply monitor it and base your decisions on candle closings which are straight forward. Stop losses can be a bit tighter since it will either work in one direction or another, and shouldn't be allowed to move around too much. For example, a long position can be made at the close above the support line, and stop loss can be placed at the 38.2% fib level.
Always remember to use volume in order confirm movements, and to prevent being sucked into a fake-out. Also, don't be fooled by wicks, it only matters where the asset closes.
Side note: Notice how the 38.2% fib level already provided support and fended price to bounce up a bit. Keep this in the back of your mind in case price returns to that level.
I am labeling this idea as neutral because there is no position being made until certain confirmations appear in the future.
-Balkoins
Here we have another easy and low risk play on Matic. Currently, this significant support line in green is being retested from the previous surge upward. If price closes above this horizontal line, expect another push towards higher resistance lines. If the price closes below this line you can assume price will return to the green paralell channel below it.
This position is low risk because you can simply monitor it and base your decisions on candle closings which are straight forward. Stop losses can be a bit tighter since it will either work in one direction or another, and shouldn't be allowed to move around too much. For example, a long position can be made at the close above the support line, and stop loss can be placed at the 38.2% fib level.
Always remember to use volume in order confirm movements, and to prevent being sucked into a fake-out. Also, don't be fooled by wicks, it only matters where the asset closes.
Side note: Notice how the 38.2% fib level already provided support and fended price to bounce up a bit. Keep this in the back of your mind in case price returns to that level.
I am labeling this idea as neutral because there is no position being made until certain confirmations appear in the future.
-Balkoins