NEO How to Trade

The market made a huge jump upward. If you could buy before the starting of this movement you must be in good profit now. As for those who missed such trading opportunity the best variant is to wait for a correction. Based on the daily chart we can draw an ascending price channel. The price tries to move above the top border of the channel. Buying from current levels won't be a smart idea, because buying on highs is not a profitable strategy. RSI is in the overbought zone and we should expect for confirmation of price reversal. If the market reverses and start downward movement, we should wait when it drops to the 1st support zone formed by the middle line of the price channel and 0.005400 support level. If we get a confirmed buy signal from this zone, we'll be able to open long trades. If the market breaks the 1st support zone, we'll see further downward movement to the 2nd support zone at 0.003950 level and the trend line. This zone will be the best place for buying based on a reversal signal. Don't forget that strong buy signals must be confirmed by candlestick reversal patterns and RSI reversals.

Comment:

The price broke the channel showing the strong upward movement. Wait for a retracement to the top border of the price channel. This zone can give a buy signal.

Comment:

The price drops to the top border of the price channel. If you are looking for possible entry levels for buy, 0.00800 will be a good variant. If the price breaks below the top border of price channel, the next level will be 0.00540.