The market keeps moving down after getting rejected from $9.800 - $9.600 Resistance Zone which was attractive location to sell.
Currently the market cap is going around $347bil. and is down from this week’s top by roughly $44bil. (top was $392bil).
When the market is falling, then it’s better to be prepared and work on your trading game plan.
There are a lot of trading opportunities that nobody wants to miss out on and when you are prepared you are likely to find those attractive levels to entry and exit.
Attractive entry levels are often found near to the longer term support zones and fib levels while attractive exit levels can be found near to the longer term resistance zones. When these are combined with indicators, strategies and divergences you are able to find signals when to sell or buy. Having a game plan is better than not to have any. Without a game plan you are like a gambler who just throws money in to these markets in hope for quick gains but might end up losing.
On the daily chart it’s testing support area that’s formed around $7.700 - $8.000 levels and the bottom of this zone lands on 0.618 fib level which is attractive to entry because the price likes to bounce from this specific fib level. New trade should only open with confirmed signals, such as:
Note that the price is testing Wedge’s Top Level which used to act as a resistance before it broke upwards and if it manages to bounce from it, then it can be assumed that it’s working as a support level.
The support zone, 0.618 fib and Downtrend Line (Wedge's Top Line) needs to be tested properly and if it starts showing any signals that I listed above this can be the first signal to enter with a small position. What if it break outs before you are able to long the bottom? You can buy the breakout, or what the price tends to do is to retest the breakout level and this can give you second chance to enter.
What if the price breaks downwards?
Next I'd watch for the fib 0.786 and $7.500 level (previously acted as a resistance) for an ideal reversal.
Very strong support zone can be found at $6.600 - $6.800 levels and longer term uptrend line lands in to this area as well.
Conclusion:
The current condition of market requires patience and that's the best asset you can have. Having a game plan is better than not to have any. From the beginning it's better to preserve good trading habits.
If you need any help with trading, recommendations or where to search basics just feel free to leave me DM in here or in my twitter. I try to respond ASAP! :)
Happy trading!
Things to Remember:
Please be aware I am providing this trading information for your benefit and insight to my trading strategies. You are responsible for your trading and investing decisions. It is highly recommended to do your own research before investing anything.
Yarr
Currently the market cap is going around $347bil. and is down from this week’s top by roughly $44bil. (top was $392bil).
When the market is falling, then it’s better to be prepared and work on your trading game plan.
There are a lot of trading opportunities that nobody wants to miss out on and when you are prepared you are likely to find those attractive levels to entry and exit.
Attractive entry levels are often found near to the longer term support zones and fib levels while attractive exit levels can be found near to the longer term resistance zones. When these are combined with indicators, strategies and divergences you are able to find signals when to sell or buy. Having a game plan is better than not to have any. Without a game plan you are like a gambler who just throws money in to these markets in hope for quick gains but might end up losing.
On the daily chart it’s testing support area that’s formed around $7.700 - $8.000 levels and the bottom of this zone lands on 0.618 fib level which is attractive to entry because the price likes to bounce from this specific fib level. New trade should only open with confirmed signals, such as:
- Volume expanding
- Bullish or Reversal Candlestick Patterns
- Chart Patterns
- Divergences
Note that the price is testing Wedge’s Top Level which used to act as a resistance before it broke upwards and if it manages to bounce from it, then it can be assumed that it’s working as a support level.
The support zone, 0.618 fib and Downtrend Line (Wedge's Top Line) needs to be tested properly and if it starts showing any signals that I listed above this can be the first signal to enter with a small position. What if it break outs before you are able to long the bottom? You can buy the breakout, or what the price tends to do is to retest the breakout level and this can give you second chance to enter.
What if the price breaks downwards?
Next I'd watch for the fib 0.786 and $7.500 level (previously acted as a resistance) for an ideal reversal.
Very strong support zone can be found at $6.600 - $6.800 levels and longer term uptrend line lands in to this area as well.
Conclusion:
The current condition of market requires patience and that's the best asset you can have. Having a game plan is better than not to have any. From the beginning it's better to preserve good trading habits.
If you need any help with trading, recommendations or where to search basics just feel free to leave me DM in here or in my twitter. I try to respond ASAP! :)
Happy trading!
Things to Remember:
- Stop-loss orders are strongly recommended.
- Beware of buying tops or FOMOS, you might end up losing or waiting long periods of time before getting anything back.
- Do your homework before investing.
Please be aware I am providing this trading information for your benefit and insight to my trading strategies. You are responsible for your trading and investing decisions. It is highly recommended to do your own research before investing anything.
Yarr
