My previous idea on STEEM reminded me of a few very important rules of trading, and here I am enforcing them strictly. The most pertinent being: ALWAYS wait for confirmation. Long term, the outlook is still very bullish, until we see some signals to the contrary. Short term, things are less sure, so we should wait for confirmation before entering.
This chart is a 343 minute with 4 simple moving averages: 7, 21, 77, 235, as used by bdkelly1203.
The most promising aspect of this chart is (A), the golden cross of the 77 over the 235 SMA. This hasn't happened since March, when steem last broke out. Until we see an inversion of this cross, I remain bullish long term. (B) is indicating a point of harmonic resonance, when two of the moving averages crossed on the 0.236 fib. This might sound "woo woo" to some people, but this can indicate harmonisation in the chart, suggesting it is "balanced" or "in tune". (C) indicates the strong support that the 235 SMA has provided to far, if this can support the 7 SMA without a cross, then that's a very positive sign, if the 7 crossed the 235 - bad news. Finally, (D) is our signal for a trend reversal. If the 7SMA can cross the 77 and the 21 after finding support at the 235, then we're in the money. This would be made all the sweeter if it happened right on the 0.236 fib!
After receiving confirmation of all the signals above, we should set our bid to just above the .382 fib at ~0.000315 with a stop loss below the 0.236 fib at ~0.000289. Our target should be just below the 1.618 fib of this run, which lines up with the 0.382 retracement fib of the previous break out, at ~ 0.000469
I will update this post as I receive confirmation diversion signals. Happy hunting!
This chart is a 343 minute with 4 simple moving averages: 7, 21, 77, 235, as used by bdkelly1203.
The most promising aspect of this chart is (A), the golden cross of the 77 over the 235 SMA. This hasn't happened since March, when steem last broke out. Until we see an inversion of this cross, I remain bullish long term. (B) is indicating a point of harmonic resonance, when two of the moving averages crossed on the 0.236 fib. This might sound "woo woo" to some people, but this can indicate harmonisation in the chart, suggesting it is "balanced" or "in tune". (C) indicates the strong support that the 235 SMA has provided to far, if this can support the 7 SMA without a cross, then that's a very positive sign, if the 7 crossed the 235 - bad news. Finally, (D) is our signal for a trend reversal. If the 7SMA can cross the 77 and the 21 after finding support at the 235, then we're in the money. This would be made all the sweeter if it happened right on the 0.236 fib!
After receiving confirmation of all the signals above, we should set our bid to just above the .382 fib at ~0.000315 with a stop loss below the 0.236 fib at ~0.000289. Our target should be just below the 1.618 fib of this run, which lines up with the 0.382 retracement fib of the previous break out, at ~ 0.000469
I will update this post as I receive confirmation diversion signals. Happy hunting!
Order cancelled:
There it is, the 7 has broken the 235. The RSI is still oversold so I still expect a bounce, and the 77 and 235 SMAs are still in order so it still looks good long term, but the current trade is no longer valid.
The next 5 hours will give us the thumbs up or thumbs down. See you on the other side!