I am letting you know now, that the odds of this trade playing perfectly are not high. But it is something I will be playing and updating.
Stochastic: Slightly divergent, keeping the same low even as price action continues down.
Relative Strength Index: Oversold, almost at the comparable level from the December 7th bottom.
Guppy Multiple Moving Average (GMMA)
The similarities are there, I will be building an unspecified smaller sized entry in the range below. The reason for the broad range is, I will stagger my largest orders at the bottom because XRP has a habit of disappointing a lot of traders. Because of this risk I am not too worried about building a large position. If it happens, then great, but I try not to sweat too much on position size with trades like this.
The stop loss is tricky here due to the fact that support is so heavy in such a broad range. For now .00004655, again this is another reason why I am not building a large position, the stop is set a tad to far for me to feel comfortable.
Since this trade is also dependant on Bitcoin due to the paring, I will be placing several Take Profit points (TP) to manage risk.
- TP #1 is .00008864, I will be taking off 50% of my position there.
- TP #2 is .0001011, I will be closing 20% of my initial position there.
- TP #3 is .00013256, I will be closing 15% of my initial position there.
- TP #3 is .00021469, I will close the remainder 15% there.
As a note, IF this trade plays, then as it rallies I will be using trailing stops, I will try to update where those are as it happens. Also the timing on all this is not set in stone for me with the TP's, that position tool with the risk/reward is not set for the trade to transpire in that time shown.
This is a risky trade due to XRP's natural way of screwing over T.A., also everything is dependant on Bitcoin as I mentioned above.
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