On short term, I do not see XRP long on my chart. Maybe it's because I use Kraken based chart but I see we are still under the big resistance of the pink triangle. And all the Stochastic / RSI are overbought in all chart. Only 1W chart is ok with these indicators, but 1W chart is for long term trade...
I see hundred of charts only based with horizontal lines, no indicators, no trend lines and can tell this is long, we are going to the next resistance. I don't really get it.
I'm still learning how to read charts better but how do you tell if something is overbought?
XRP is my main holding since 2017/2018. I would like to get into some small trades with it but i mainly buy anf HODL
Hello, there is some clues with the indicators, espacially Stochastic and RSI :
About Stochastic : "The stochastic oscillator is range-bound, meaning it is always between 0 and 100. This makes it a useful indicator of overbought and oversold conditions. Traditionally, readings over 80 are considered in the overbought range, and readings under 20 are considered oversold."
About RSI : "When the RSI indicator prints a reading of above 70, it hints the asset is in an overbought condition and is due for a correction.
Likewise, a reading of below 30 signifies that the asset is in an oversold condition. It instigates a demand on the asset.
The values 70 and 30 are only indicative. Traders use different combinations, say 20–80. It depends on their style and aggressiveness."
It gives good clues about what you can think. You have to check RSI / Stochastic on all time bases you can so as to confirm what you see. Sometimes RSI can be oversold in 1D chart but overbought in 2h chart.
If you Hodl, you should stay on 1D,3D, 1W, 1Mont, charts.
I combine also with Macd, which is interesting for the global trend.
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You can also have a look in the past.
What did happen in the XRP chart when RSI or Stochastic have been over 80 in 1D chart?
You can see most of times the price gone down on middle term. So you can imagine what will happen on next moves.
At the end of the day, the more you are curious, the more you'll find some clues for your trades, and maybe you can find some elements that could make false my opinion.
Only reading ideas is for me a bad idea because we can see a lot of charts without explanations.
PyroMessiah86
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@Spare1, Thanks, I'll have to research as need to get my basic chart reading skills up but some explanation there helped me. Thanks for that.
You made some very good points for sure. I need to check Macd and figure that out.
Do you have a prediction for XRP in the next 1D or even 2H?
I don't like to do predictions.
I see 3 scenarios, it is not an advice just what I'm thinking
Tomorrow :
1. The price will increase untill to 0.2610€ and will hit his head on the pink line. Then will start to go down to something like 0.14€ within a month and hit the descending support line again. ------- My favorite one -----------
2.The price will decrease a few and hit the pink line in some days (3 to 6). Then will start to go down to something like 0.14€ within a month and hit the descending support line again. ------- Not my favorite but why not -----------
3. The price will decrease just enough to make an accumulation zone (so as to go out overbought zone) just under the pink line and then cross it. The Ema will shows a golden cross and there will be a bullish trend confirmed. ------- I'm not confident with this scenario, Bearish people are waiting the end of the pink triangle I guess ---------------
XRP is my main holding since 2017/2018. I would like to get into some small trades with it but i mainly buy anf HODL