W0lfRAider

Watch out for NEO BTC potential upwards break

BITFINEX:NEOBTC   NEO / Bitcoin
NEO is lagging in the space today. Its stays a difficult token cause I still see some pretty great downward risk on the chart. Risk management and finding a entry spot through analysis of the lower (5-15 minutes time frame) is the key when going for a long in this region.

But it is a setup that in my experience from here could very well turn out to be very bullish . I have it seen before. We are speaking of high upwards potential clearly, not just 10 percent or so, but multiples of that.

RSI has some divergence in it, but sadly not superclear. It's on my watchlist now to take on a position when some more reference points occur. I will update my idea when that happens. Feel free to share your thoughts on NEO or ask some more particular information in the comment section!
Comment: We are close to a break of that first line on my chart. Watch out closely! 3, 5 and 15 frame ma50 bollinger bands confluence gives good entries most of the time from the perspective of risk management and stop loss strategy. Do remember there is lots of downside potential if a break does not occur. This is not something to enter and just let go imho.
Comment: So far looks good. We could be off and running.
Comment: Almost at second resistance. But it's going according to plan.
Comment: NEO does not seem to be bothered at all. Bullish!
Comment: All systems are go. Hyperbull.
Comment: No rush, just slowly quality building, that describes NEO the last few days.

I post a chart for the sake of posting it, not much to see here except a nice looking build up.

Comment: Not super the last hours. No drama either. ma50 4h should prove to be support.

Comment: We are there. ma50 4h.


Zoom in 15, it's all still possible for bulls. Not that much wrong at this moment.

Comment: I say even more, a perfect spot to enter the market when flat at this point, or even add to current positions. Please do your own due diligence with regard to risk management and entries.

Comment: I personally just let current position run, without adding to it.

I could add to my position however, when we a) make one more tiny low or undershoot towards that under blue horizontal line, or b) when a ma50 Bollinger confluence on one of the smaller timeframes should occur. (That could perfectly be somewhere quite substantially higher than the low. I do not necessarily need to buy THE low).

That ma50 Bollinger confluence does need to have a certain 'quality' to it.
This is - I agree and I am fully aware of - a rather subjective, quite discretionary assessment, with roughly two components to it:

1) First of all I want to trade them - most if not all the time - in the direction of the trend as seen/analyzed on minimum the 1h 'chart. I am not going to hunt every minor bounce intraday.

(side note: that trend could very well have been DOWN/SHORT on last Monday for instance @BTCUSD, no paradox there, although BTC is in a massive bullphase. When the triangle structure around 40k was left, it was definitely bear mode on the hourly chart.)

2) Secondly, I would like to see some form of 'harmonious' chart build, and/or as many other confluences as possible in that area: that could be a fibonacci number, trendline(s) or some chart pattern, or it as well could be an harmonious "three wave structure".

(At least I call it that, EW specialists will definitely not). It comes down to this: some waves who clearly are part of a same larger movement I prefer to have similar proportions in height and more important length (time). The latter is something that I personally use and have incorporated in my trading through yeah, just much chart staring and clicking and lookin' for edges, I suppose. :-)

it all will make some better sense throughout my ideas. Mea culpa for now...

Probably if not certainly this approach has been already the subject of dozens of articles and books, in the field of Technical Analysis. I haven't read that much TA books to be honest. Along the way I have encountered many lists though with regard to "which TA books EVERY trader definitely should read!". Does that count as well? ;-)

Enough lists let alone books to keep me be busy non stop 24/7 reading for years and years to come. ;-)

Anyway, end of my sermon for today...As always, I wish you a happy and safe trading session!
Comment: That's the symmetry, the 'harmony' I like to see. I cannot rule out that the market wants to stretch. But the pattern (channel) has certainly reached maturity.

Comments

Wanted to update my idea instead of posting in the comment section. Please see above in the update stream of my idea.
+1 Reply
looks like it will soon break the channel, thanks for sharing
+1 Reply
@abel11, You are very welcome. Still lookin' good. Now horizontal resistance region 0.00056-58, likely about to be broken to the upside.
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Is this a pretty good buy for HODL?
+1 Reply
W0lfRAider CMMTrades
@CMMTrades, I posted a comment but it has vanished, I probably edited it too many times? For HODL I am looking at higher market cap crypto's myself, for NEO its difficult for me to look beyond the scope of a medium term trade. I am not saying it could not be a good idea to long term hold it, it's just that I dont kow. ;-). Thx for your interest and your question, though.
Reply
DreamsTrader CMMTrades
@CMMTrades, Indeed I invested today thousand of dollars for long term.
+1 Reply
W0lfRAider DreamsTrader
@DreamsTrader, Godspeed and lift off Falcon Nine, euh NEO
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