OMG' has been silently up 100% over the past few weeks and after making a new all time high it appears to be setting up to continue its path higher However before you run out and buy because it hit the breakout level I want to clarify what this means.
There is some confusion on what a "Breakout" is and what testing a level is. So on the chart, to insure it is clear, I have posted two examples. Poking through temporarily and pulling back under a resistance line is NOT a breakout! This is not a we get to 20.1254 its all in! We need to see how the market reacts at these critical levels. So what is meant by this statement "breakout" (at least when following me), is that we have a well defined break through of the level, either on a very strong closing candle and continuation or a retest of the level.
When I first started posting I called these levels of "reflection". There was a reason for this and the reason was simply, we want to see how the market reacts at these critical levels. I very rarely put in buy here sell here orders. I rarely if ever use automatic stop losses. I feel its very important to monitor your trade from entry to exit. How many times has a equity stopped just short of your sell price only to pull back 20% or more? I personally had it happen often when I first started trading. This is why its important to have a basic understanding of charts and price action patterns/trends if you are investing and more important if your trading.
I can not tell you how many times a "wick" touched a level and people flock in like its a "golden number", only to send me a barrage of messages that I was "wrong". Fibonacci and Elliott Wave are guides not crystal balls. There are no palm readers in trading the market period! There are only wolves and gazelles.
Now there are other ways to identify breakouts such as candle stick patterns which @MarcPMarkets uses and identifies in his charting. I am reading his book and am testing techniques on a small scale until I can get a better feel for it. I also have my own method which is similar to the Darvas trading system, but the more tools we have the better we are at developing our own system. So branch out.
I want to see a break through of the $22 level before I enter a trade here. This will be an addition to my core holdings with the intent of adding any profits to my core position for free. I have a final target price of around $40. This is clearly a longer term trade setup and I will start shaving off at the targets listed above, and may add on dips. What will trigger this? Price points? NO!!! How the market reacts at these levels. There is no reason to enter early as often wolves corral the gazelles in the direction they want for a feast. It is better to leave a couple bucks on the table, then to end up being the main dish.
Disclosure: I'm long term OMG' and looking to buy a breakout of the $22 level. I do not have time to post real time trades, so I recommend doing your homework and develop a strategy and plan for trading.
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I know its NEO but I want to clarify what a breakout is. yes I did buy it! But I'm monitoring it closely to insure its not a fake break!
Thought of the day: "Fibonacci and Elliott Wave are guides not crystal balls. There are no palm readers in trading the market period! There are only wolves and gazelles. " (golbug1, TW)
CryptoBrando
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I feel like so many people see the “omg” tag and fail to do the research. If they did they would see one of the best kept secrets in the crypto world. Goldbug has been on this one for a while and knows the fundamentals. This coin/network is a better ripple on steroids.
If the pre established partnerships of Omise (creators of but not owners of this public permissionless exchange network which include the Mitsubishi financial group) or the fact that all transaction fees go to token holders and they will be able to process 1 million transactions per second and will include fiat out of the gate aren’t enough to get you on board. Then maybe the fact that they will be releasing a free white label wallet for merchants (only shows business name with no need to have omg or
Omise anywhere in sight) and sdk making it possible for anyone (including liquidity providers of the 5 trillion dollar a day worth of transfers forex market) will be able to link up to the network and reap the benifits out of the gate. Will also solve the problems that plague bitcoin (high fees and tx time)
Most people don’t make it past “omg” to find the buried treasure under the name
CryptoBrando
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@CryptoBrando, and unlike xrp it is actually decentralized (Omise may have its name on there but have stated many times they do not own the network) and is the next natural progression in bitcoin financial sovereignty ideology “un bank the bank” . This doesn’t mean they are anti bank (they have stated they are about synergy) , because banks do provide some very benifical services. But this network will un silo and remove the borders between fiat payment services such as Ali pay and Apple Pay while also doing the same for the crypto universe (merchants and banks will receive whatever fiat or crypto they desire up transaction)
montybrewster
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@goldbug1 - excellent analysis and educational support! According to coinmarketcap, the entire cryptoverse was valued at US$559 bln on 12/31, and today the value is over US$760 lbn! That is a $200 bln increase in 4 days. We are seeing coin after coin "pump/moon/lambos" because of this torrent of fiat-to-crypto regardless of the coin/token's phase: operating, beta, development, concept or zombie/shitcoin. I have no doubt that OMG is fundamentally sound, and will breakout when it is ready to do so. However, at some point the pump/moon/lambos crowd will set its eyes on OMG and inflate its price when least expected because it hasn't "pumped" yet. I've literally seen a rotation through almost my entire portfolio at this point of 100% gains that have no news/tweets to support them. While a pump is undesirable to say the least because the quality of forums degrade into moonbaby gibberish, it offers an opportunity not only to sell high, but also, if you believe in the coin/token, to buy back upon retracement.
goldbug1
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@ididntask, This is why its critical to only trade crappy coins, and invest in good ones. Same thing with the dot com bubble but who wouldn't want to be holding AMZN AAPL or Google NVDA etc. at a price before the POP!
BatJam1
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Thank you Goldbug for the work you do! I’m a newb and know in the end if I make a move and it fails to produce it’s no ones fault. There is no crystal ball,In the end it’s my decision alone! I try to do my homework before making a decision or move on a position! Love the charting and speculation you do keep up the good work!