So here's another chart where I won't bore you with lots of technical indicators. I am primarily a believer in trends, patterns, supports, and resistance. The indicators do help in projecting and confirming those areas, and they are fun to learn and use, but the trend lines are what I follow the most.
For NEO, I've noticed a pattern formed based off of the previous trend line. The bounces off of that trend line were proportionally quite big. Now they look minute, but at the time, they were quite exciting and if you were holding back then, those were major moves. I was lucky enough to get into ANS, at the time, quite cheap and have been steadily accumulating along the way. This new trend line is not as strong, in my opinion, when it comes to acting as a launch pad for price action. NEO does seems overheated to me at this point. Again, no indicators, just a feeling. We could continue to see increases and new ATH in the short term, but I do believe we will eventually correct back down to that main trend support. When that happens, I'll be waiting to buy as much as possible as I expect the bounce, off of that support, to be huge.
Let's see...
Trade active
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Hello all,
Quick update. I don't know how to add a picture to this, so I'll just describe as best as possible and you can turn on the necessary indicators. First, you will notice a potential new trend, which I missed forming. If you take a trend line from the wick aug 11th at 19:00 and draw it to the most recent wick on aug 17th at 07:00, you will find a nice new trend forming which is providing support. I am in UTC + 7.
I've used a couple of indicators to try and confirm and right now they are inconclusive. 50 period EMA is acting as resistance now. RSI bottoms for today and August 15 are diverging from price action, which suggests a trend reversal. If we see price close above 50 period EMA, that would further suggest a trend reversal and we could be on our next move up rather than down...
NEO is strong even in a downtrend. People are holding to earn their GAS so supply is more limited than your usual hot coin that gets traded. This could cause retracements to be shallower than expected.
Trade active
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So here is an update as we may have reached bottom for now. A trend reversal is possible as we have a few indicators all pointing in that direction. First, a solid support, with the past few candles on a previous strong support/resistance area. Then we have a few indicators, here as I was looking for as much confirmation as possible. Their is a divergence with price action on both the Stochastic as well as the RSI. Lastly, the MACD indicator looks like it is nearing crossing. Should that cross and head into bull territory, that would be another confirmation.
How much of a reversal looks to be based off of breaking the current downtrend.
@wjmulders, yup, we are. kind of right on that line though. We could get a smaller bounce off of it, but if the high is lower than the previous, then I think it's even more likely that a drop will occur. Either way, I'm holding if it goes up or buying more if it goes down.
wjmulders
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@dctobkk, thanks for insights. What do you think of the current pattern that is gaining momentum? Looks better and better?
dctobkk
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@wjmulders, As expected, it did pick up a touch, topped out below the previous high and now dropping. I'm watching previous support levels at .0975 closely to see if the bounce back occurs there, if not, there's another previous support around .081 and then down to the big trend line support which is my buy zone. those are all areas to watch. Conservative play would be to scale in your orders at each zone if you believe NEO is overall going to much higher levels. If you believe NEO will be $100 someday, then losing a little here and there on the scale isn't a big deal. I'm gambling with my full buy order ready at the support line.
dctobkk
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Sorry, that volume to break out was quite strong. Misread the chart. Good sign.
dctobkk
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Amazingly, Support was broken from last post, but we dropped momentarily into buy zone for a moment and have reverse trend. Decent buying pressure out of the buy zone, but not what I would call strong. Be cautious still and watch closely. Money is flowing all over the markets now with BCH dominating volume for the past few days.
HenryK81
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Could potentially form a head and shoulders pattern...I would be careful.
Eldal
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I'm trying to understand how to trust resistance from say a 30 min chart vs the bottoms on a 1 day chart.
dctobkk
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@ladle3000, So I'm not an expert, but the way I use all the tools is based off of the trading style I want to employ for that particular coin. I do everything from indefinite holds, to quick ins and outs in a matter of hours. If you are doing long term, definitely use the daily as your main form of measure. I almost always zoom in and zoom out though in order to find the strongest areas of support and resistance. Trends are my main guide and once trends are broken, I look for support and resistance areas as potential bounce backs/head fakes. It's all a guessing game, so best thing is pick the tools you are most comfortable with as they all tend to be lagging indicators, and so are only telling you about the past to try and inform the future.