I want to lead this off by saying I only enter swing plays on positions I feel confident in long-term as well (never subscribing to greater-fool). WTC is a solid project and a great competitor to VEN. However, this trade is based off pure technicals.
First, let's look at WTC's recent bull run, which followed an almost textbook 5 wave pattern with a 3 wave retracement. If you zoom out even more you'll see this bull run was actually the completion of textbook "cup and handle" pattern, where the run was the break out of the handle.
Now that we have retraced back to the peak of the first wave you can see we are breaking out of the descending action and crossing several moving averages in the process. The indicators are very bullish and confirming on multiple time frames. I'm not going to go into too much detail on this, as I feel the technicals speak for themselves.
Side note, I entered aggressively this morning at approximately 272K satoshi but have been a bit too busy at my real job to post. Sorry!
Entry: break of 275K satoshi on a bullish move.
Stop: 265K satoshi
Target 1: 320K satoshi
Target 2 (if we bull through 320K satoshi): 375K satoshi
Target 3 (if you are a medium-term trader, as this will be a while): 450K satoshi
First, let's look at WTC's recent bull run, which followed an almost textbook 5 wave pattern with a 3 wave retracement. If you zoom out even more you'll see this bull run was actually the completion of textbook "cup and handle" pattern, where the run was the break out of the handle.
Now that we have retraced back to the peak of the first wave you can see we are breaking out of the descending action and crossing several moving averages in the process. The indicators are very bullish and confirming on multiple time frames. I'm not going to go into too much detail on this, as I feel the technicals speak for themselves.
Side note, I entered aggressively this morning at approximately 272K satoshi but have been a bit too busy at my real job to post. Sorry!
Entry: break of 275K satoshi on a bullish move.
Stop: 265K satoshi
Target 1: 320K satoshi
Target 2 (if we bull through 320K satoshi): 375K satoshi
Target 3 (if you are a medium-term trader, as this will be a while): 450K satoshi
Trade active:
So we had some stop-loss hunting going on, but it's important to zoom out and look at the bigger picture when this happens. Nothing changed technically or fundamentally during that short spike down. Yes, it crossed my stop but the golden rule of stops is that unless there's a fundamental shift your stop should not be executed until the candle closes. Also I probably placed it a bit too high anyways. That's why I hate stop-loss orders and instead process my stops manually (often with terrifying 1AM price alerts). So long as you don't get emotional this is a far better strategy. Most people tend to get emotional and have sunk-cost fallacy, however, so it's important to choose the stop-loss strategy that's right for you. And, if you place stop-loss orders, do so well under where a hunter might try to empty you of your position prematurely :).
Trade active:
So, looking at the chart, my stop was definitely too aggressive.
We are still making higher highs and, assuming I had BTC to play with right now, I'd love to buy WTC at this price, which is usually my signal that I should remain in the position. I was too optimistic that I may be able to trade this in 48-72 hours, but it's looking like this will be more of a 1-2 week swing trade.
We are still making higher highs and, assuming I had BTC to play with right now, I'd love to buy WTC at this price, which is usually my signal that I should remain in the position. I was too optimistic that I may be able to trade this in 48-72 hours, but it's looking like this will be more of a 1-2 week swing trade.
Trade closed: stop reached:
When bitcoin pumps, alts fade. I didn't expect last night's bitcoin pump, and so I got stopped out of this trade. However, I am re-entering it this morning as 250K satoshi is a pretty strong bottom.
Next major resistance: 290K.