In the last 3-4 days monero has been dropping significantly without much retracements
We are seeing Divergences in RSI and MACD & last 1H candle was a dragonfly candle.
Intraday setup for monero:
Open: 0.02297
SL- 0.02293, Risk- 0.47%
Target1: 0.0234
Target2:0.0236
R:R=4.31
We are seeing Divergences in RSI and MACD & last 1H candle was a dragonfly candle.
Intraday setup for monero:
Open: 0.02297
SL- 0.02293, Risk- 0.47%
Target1: 0.0234
Target2:0.0236
R:R=4.31
Comment:
Intra-day trade stopped out, 0.5% loss. still keeping an eye on #Monero though. Laderring buys would be a good strategy, from here on for #XMR accumulation.
Comment:
There is an important lesson to be learnt here.
Just because we get divergences, it doesn't mean that downtrend reversal is around the block.
It can also mean that we can have a short term break from the downtrend, before we head downwards again.
Divergences need to be verified with other trend reversal confirmations like price action making higher lows and higher highs.
They become important if we have divergences around important support levels.
The problem with divergence is that it doesn't give us the exact time of a reversal, sometimes these divergences can trickle slowly and slowly to higher time-frames like from 1H to 4h to 1D and then we may get the final trend reversal.
Still finding the bottom is an impossible thing to do, so its a good strategy to ladder buys when we see these divergences,while the RSI is in oversold region.
Just because we get divergences, it doesn't mean that downtrend reversal is around the block.
It can also mean that we can have a short term break from the downtrend, before we head downwards again.
Divergences need to be verified with other trend reversal confirmations like price action making higher lows and higher highs.
They become important if we have divergences around important support levels.
The problem with divergence is that it doesn't give us the exact time of a reversal, sometimes these divergences can trickle slowly and slowly to higher time-frames like from 1H to 4h to 1D and then we may get the final trend reversal.
Still finding the bottom is an impossible thing to do, so its a good strategy to ladder buys when we see these divergences,while the RSI is in oversold region.
Target1: 0.0234
Target2:0.0236
R:R=3.74