We should be rich from trading crypto and driving Lamborghinis because trading crypto is easy, right? Just look at this enticing XRPUSD setup. Hopefully by now EACH OF US knows that setups like this one can be deceptive.
Historically, XRPUSD is bearish in October. But, if we consider how market seasonality can fluctuate for equity trading, then we can presume that XRPUSD will be eventually be bullish during an October. Perhaps, that October is now.
What will you do?
This trade setup is based on application of fib extension levels to Elliott Waves and Wyckoff Accumulation:
Historically, XRPUSD is bearish in October. But, if we consider how market seasonality can fluctuate for equity trading, then we can presume that XRPUSD will be eventually be bullish during an October. Perhaps, that October is now.
What will you do?
This trade setup is based on application of fib extension levels to Elliott Waves and Wyckoff Accumulation:
- Price is concurrently finishing Wyckoff Accumulation and an EW W4 following a W3 that failed to reach a price length of 1.618 x W1.
- Price should proceed to a Wyckoff Markup phase coinciding with an EW W5 that reaches 1 to 1.618 x price length of W1 + W3. Note, W5 can extend to 2.618 x (W1 + W3).
- Price should then complete a Wyckoff Distribution phase coinciding with one or more EW Corrective Wave patterns.
- Price could continue Distribution and it’s correction, or price could enter Re-Accumulation and another EW Wave count.
Note: To clarify, the Fib levels are based on W1 + W3, ie, Fib level 0 is bottom of W1 and Fib level 1 is top of W3.
Wave 5 trade setup for a given XRPUSD position of X bought at $.23:
- T1: sell 60% of X at $.43 for a total profit of ~12%. T1 is between Fib levels 1.382 and 1.618.
- T2: sell 20% of X (50% of remaining position) at $.50 for a total profit of ~56%. T2 is between Fib levels 1.618 and 2.
- T3: sell 10% of X (50% of remaining position) at $.56 for a total profit of 80%. T3 is between Fib levels 2 and 2.382.
- Sell remaining 10% of X at any price higher than T3 for a minimum total profit of ~104%.
Comment:
On 2hr TF we see white price line (white line is close, pink is high, blue is low) has confirmed both its breakout above the channel (bounce from downwards sloping white line) and 10 DMA as support (bounce from teal/cyan DMA line). Also, price has broken above 20 DMA (blue DMA line).
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If that bottom trendline continues as support...
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At this point, anything lower than .2514 is a steal. So, buy buy buy that flag!
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For you day and swing traders, look out for this setup based on EW. Buy if price either strongly bounces or closes at about .248 because it indicates a completed Wave 2. For Wave 3, set sell targets between 1.618 and 2.236 fib extensions (length = 1 to 1.618 x Wave 1). Keep an eye out for lesser degree waves to determine if Wave 3 is extended and whether to set a target between 2.618 and 3.236 fib extensions not shown (length = 2 to 2.618 x Wave 1). For a standard Wave 4 based on above numbers, price should retrace to about .28 but no more than 50% of Wave 3 (about .27 if Wave 3 from .248 to .293). But, this is crypto so be prepared in case price dips to or below .26 before rising to close above .27 for Wave 4.
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Hmm... look at the price this close to close.
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Edit: Deleted an update about likelihood of an extended wave 3 or continued correction based on yesterday’s close. After further consideration, I don’t think likelihood of anything has changed.
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Keep an eye on this. Based on this, price is targeting $.35 before a significant pullback.
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Like I said in a more recent idea: the pressure on XRPUSD has built up so much that my head is about to pop. My inner moon boy wants to disregard all practical targets and simply aim directly for $1.1. Anyone else???
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Took long enough but looks like it’s finally playing out.
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I hate to say it, but please disregard this idea and check out the new one I recently published. It supersedes this one.
