See callout bubbles. Don't put too much stock in the news! At its best, news is simply a lagging indicator. By its nature, it HAS to be! Prices in a live market move FIRST, and then, and only then, do news outlet report on the price move! This is incredibly important for everyone to understand when trading ANY market!
I really hope that this post has been helpful for someone out there! Please Like and Follow if you should choose to do so.
Always measure your risk and be okay with being wrong ; )
How you define that range?
My calculations shows more different values. I expect to see price moving to 0.80 - 0.90 zone.
However I like your type of thinking. See my analysis for comparison.
Simple_Renko
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@nixel, First off, thank you very much for commenting and engaging in discussion. The way that I define the highlighted range is the width of the high/low of the small green candle with the rectangle around it. Because of the big green D candle that came just after it, I am suggesting that somewhere within or around the range of that small candle, there should be quite a bit of demand for XRP against the USD and price could get a nice bounce and continue its strong upward trend.
In more liquid markets (i.e. currencies, stocks, futures, etc.), these levels tend to hold better as they are often made by banks and institutions as opposed to crowds of people (which make up most of the crypto world). The idea is that when the market comes back to test these price levels, a similar action will be taken by the market. That is, if we can find an area where there was a lot of buying in the past, when the market drops down and offers a discount, those buyers who made the initial push up may be looking to buy once again and, hence, continue to move the market up from that price level.
This works on the sell side as well, too. However, because the crypto moves have been mostly Up, there are more demand levels in play currently than supply levels.
I hope that this has helped you understand a little bit more about my way of looking at things. Happy trading and keep in touch. Thank you again for commenting!
Nzeehassan
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So your saying that there is insider trading? because that is exactly what happens when price moves before the News? While mostly true i don't think its happening with Ripple.
Simple_Renko
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@Nzeehassan, No. I'm not saying that there is insider trading going on. I'm simply suggesting that price moves first, and then the news digests the move and looks for possible reasons for it. Additionally, I'm saying that, in the areas where the market has seen a nice move, upon the retest of that area, it is more likely to see a similar reaction. This is how it is possible to time the markets and get in early before big moves happen.
That is all, my friend, and Thank you for your comment!
Nzeehassan
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@Chris.cellura, Thanks for clearing that out... appreciated! by the way what do you think of this piece of news? i personally disagree as the author is suggesting that Ripples 'True Value' is only between 5-8 $ simply because he views it as a stock and not a coin...
My calculations shows more different values. I expect to see price moving to 0.80 - 0.90 zone.
However I like your type of thinking. See my analysis for comparison.