The market bounced from 140.00 level and we got a bullish divergence formed by price, RSI and MACD. It was the 1st trend reversal signal and we could open buy trades in long term. Now price is going to reach MA100 which shows the main trend based on the rules of this trading strategy. If the market passes throught this resistance line, we'll get the trend reversal confirmation. So we have to watch more closely for price action near MA100. We must be ready to open new long trades. These levels are good for buying in long term. As for stop orders, they must be placed below 140.00 support level. If price reverses from MA100, probably we'll see a new downward movement to 180.00 and 140.00 levels.
Been following your ideas/setups for a while now and find them excellent, you're one of the few people on here that I follow closely. Keep up the good work.
PositiveVibe
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You are so damn awesome! Thank you!!
Irukandji
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why do you use tether? why not just usd?
CarSV
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Any signal that the price is returning to 170 and below levels?
NoCode326
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@tradecrypto132, So far, today's movment is a healthy retracement back to strong (now) support at 190ish. If this was a breakout yesterday, it will be back at $220 + in the next 4 hours. Looks ok so far for longs. In my opinion.
CarSV
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@NoCode326, thank for your opinion. I also think there has not been a significant breakout ... let's see what happens these days before the end of the week.
Cheers !!
Crypteaux
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And I will add that I'm sure you have a lot more experience than I, so please don't misinterpret my questions or critiques as contentious. I am trying to get better at creating my own TA so I am only asking questions that I would be asking myself in this situation. My questions/observations are genuine and have the sole purpose of helping me to understand and perfect my own TA skills...and also obviously to make, or not lose, a few dollars in the process.
Crypteaux
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I won't disagree with you about showing what is called "divergence" bc it is actually showing this. But I'm not sure about the strength of those indications because if you look at previous points in RSI and MacD there were also signs of divergence that didn't result in a reversal out of the bear trend. Look at both MacD and RSI starting June 26th and ending July 1st, that's another small sign of divergence in RSI and a massive sign of divergence in MacD which appears did cause price to move up in response. However, if MacD divergence was that strong and didn't cause reversal out of bear trend at that point in time, then why would the current signs of divergence cause a reversal out of bear trend when they are clearly not as strong? In addition this is at 4hr candelstick intervals which may be zoomed in way to close to indicate a reversal of a downtrend that has lasted over an entire month. If you zoom out just one step further to 6hr interval and beyond, there is clearly no sign of divergence in either MacD or RSI. I would need a lot more convincing and a lot stronger confirmation of divergence to commit to going long and definitely a sign of divergence in a bigger time interval.
Gunavan
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Could I ask you why do you trade at Poloniex instead of CoinBase? I live at US
Crypteaux
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@Gunavan, Can you really trade on Coinbase? Coinbase has way too many restrictions and limits to accomplish the task of trading. I'm pretty sure you are forced into a market order and that's your only option. Also once you reach your limit you have to wait an entire 7 days. This last dip to peak was 3 days from bottom to top, so what if you wanted to buy at bottom, sell at peak, and then buy again at a lower price. If you already bought your limit in the first purchase then you wouldn't be able to trade for another 7 days, so you can basically only trade up to your limit only 4 times a month. So what are you supposed to do for the other 24-27 days of the month? I think coinbase is incredibly valuable in terms of being user friendly for new people entering the market. I don't think I would have ever gotten involved in crypto if it were not for Coinbase. But beyond that I'm not their greatest fan.