Price bounces from the kumo and the uptrend line. RSI confirms price reversal. DMI shows range market conditions and for possible trading, we'll need ADX line moving upward. If we buy based on this reversal signal, our long trades will be opened not far from the downtrend line. This resistance line will be able to stop and reverse the market. It will be better to wait for a breakout signal and buy above the downtrend line. The breakout will have to be confirmed by high volume and rising ADX line. Stop orders should be placed below 37.50 level. Profit targets should be at 50.00 and 58.00 resistance levels. If the market drops below the kumo, we'll be able to see a downward movement to 30.00 support line.
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Monero broke the downtrend line. It's a confirmation for possible upward movement.
Hi Dimitri, I have been following XMR, on my analysis and yours, I just saw this divergence on the 6H chart, but DMI seems to be in trend market conditions. Any thought?
madebyivor
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Hey Dlavrov,
Interesting ideas. I'm interested in your DMI readings. You say "DMI confirms range market conditions", what does this means? I've been reading about DMI and seems like the trend here is weak. I'd love to learn from your experience and maybe we can get a link or two to learn about DMI.
@madebyivor, I use DMI in such way:
if ADX line rises above 20 level - we have a strong price movement and trend market conditions
if ADX line falls above 20 level - we have a correction and trend market conditions
if ADX line falls below 20 level - we have range market conditions
if ADX line rises below 20 level - probably we have a beginning of a new strong price movement