truth will be soon,
but calling UVXY with technicals indicators as we know it, almost impossible!
UVXY is for me a SCAM, manipulated as never seen in my 35 years experience on the job. Deep pockets are the only long potential winners in this game.
Learned the expensive way for myself.
If your patent enough, it should become turn out the most lucrative trade of the year, anytime soon... don't rely too much on technical with this one!
GOODLUCK!
DigitalMoneyTraders
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@mfournier3, Ya I agree. Price action def moves awkwardly on this asset. I went with long call options for this specific trade for that same reason- limited risk. Thx for the info Good luck :)
mfournier3
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early last week I posted an RSI divergence on the daily chart at around $11, and popped-up shortly after at $13.78... it seems to be preparing the same setup again today... smells good at least for a day or two like last week, GOOD LUCK!
Beside technical, Goldman Sacks and Morgan Stanley are getting ready for the next VIX explosion.
Algyros
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Could you explain exactly how you play an RSI bounce. What are your triggers, profit targets, stop losses, etc.? BTW, thanks for the interesting chart.
DigitalMoneyTraders
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@Algyros, sure- entries very depending on the situation. for example- fast falling price will bounce more quickly then slow beat down price action...
typically what I do is look for oversold conditions on multiple time frames, waiting for the 4 hour and daily to be oversold. Once the 4 hour is oversold and starts to form a "bottom failure swing" or RSI divergence, and this happens around a confluence zone of support/resistance, psychological price points, fibonacci, EMA/MA lines, etc. then I start to look for entry... reversal candle MUST have peak volume associated with it, then the next BULLish candle will confirm and must also have volume. All that adds up = safe to enter.... worst case normally will break even and new price will move lower, for next attempt.
I typically enter on 1-3 shots. I know people that set a waterfall of price orders- hoping that price action fills them on the dips/wicks. If you do this method, NOT all orders should be filled. If all orders get filled then not aggressive enough.
"Catching the knife"/ playing an RSI bounce- can be very dangerous as the price is typically moving fast, and you are going against the trend, and if wrong limit orders can be bypassed. Not recommend for a beginner/or start with small amounts. Be prepared to accept additional risk on these volatile trades and reducing position size is normal to accommodate the additional risk.
but calling UVXY with technicals indicators as we know it, almost impossible!
UVXY is for me a SCAM, manipulated as never seen in my 35 years experience on the job. Deep pockets are the only long potential winners in this game.
Learned the expensive way for myself.
If your patent enough, it should become turn out the most lucrative trade of the year, anytime soon... don't rely too much on technical with this one!
GOODLUCK!