Altcoins On Verge of Collapse
As you can see, a head and shoulder pattern has formed on the Crypto Total Market Cap that excludes Bitcoin. I'm posting this idea because this is a great place, whether long or short, to trade in terms of risk to reward.
Reasons to short: The price is currently right below the 30 week moving average AND below the neckline of a large head and shoulders pattern. The target from the head and shoulders break would mean an 80% drop to the 1.23 fib exactly. Target is derived by taking the height of the head to the neckline, and then projecting that same amount below the neckline where the break occurs.
Reasons to stay long: The 30 week moving average is curving upwards and there is currently a doji forming on the daily. If the price reclaims the 30 week moving average, we could see a new local high.
Reasons to short: The price is currently right below the 30 week moving average AND below the neckline of a large head and shoulders pattern. The target from the head and shoulders break would mean an 80% drop to the 1.23 fib exactly. Target is derived by taking the height of the head to the neckline, and then projecting that same amount below the neckline where the break occurs.
Reasons to stay long: The 30 week moving average is curving upwards and there is currently a doji forming on the daily. If the price reclaims the 30 week moving average, we could see a new local high.
My goal is to find the best risk:reward setups. For instance, if you risk $1,000 at a chance to make $5,000, you can afford to be wrong 4 out of 5 times and still not lose money. I hit my targets over 50% of the time.