I started to learn about trading recently, and I'll post my trade ideas based on Simple indicators for even new traders to understand ! :)
Neo is looking to go for a correction here.
We can take a look at 2 indicators:
1) (Relative strengh index)
When above 70: Market is overbought --> price will fall
learn more about here: https://www.investopedia.com/terms/r/rsi.asp
The difference between the short therm line (Blue) and the long term line is at its peak right now.
When the short term line is crossing above the long term line, it's a clear sign. However, when the difference is too big, the market needs to correct. Which is confirmed by the .
Learn more about here: https://www.investopedia.com/terms/m/macd.asp?ad=dirN&qo=investopediaSiteSearch&qsrc=0&o=40186
Those indicators are on a week scale which is very strong !
Those indicators are the same used in my ETH short trade a couples of days ago
Please comment to let me know what you think.
I'll be posting other simple trade in the futur if you liked it !
Now I can see that the RSI is more or less on 70 and the price has not corrected. If the RSI gets to 70 or lower and the price keeps on a support level we can expect no more correction?
The short term line is above the long term line but it seems is not really above now? The values are 0.0113 and 0.0089. When this difference begins to indicate correction?
On the other hand I've seen other analisys where is said that Elliot wave 5 is coming. That is not possible if we expect correction isn it?
I don't want to disturb you, I just want to learn :-)
Thank you for respnding to my post !
What we need to know is that, all those indicators are just "indicators"... and even though everything is giving us downwards movements, it can possibly go up..
Yesterday evening was a bit crazy because the BTC lost almost 10%...
However when I posted the idea, the price of NEO was at 0.01424 and it corrected to 0.0137 before going up again. That's a 4% decrease which is a decrease good enough for D2D trading :)
Regarding the RSI, when it's above 70, it's an indication of overbought market, but it can stay above 70 for a couple of days...
Regarding the Elliot Wave, I'm still learning, so I cannot guide you with that, I still try to focus on very simple indicators because I've seen that the RSI and MACD usually worked very well. You can check coins like ETH and its history :)
I will look at this indicators in past charts to learn.