Couple things you may have noticed about recently. and are back in big way. Take a look at this chart and see if you agree. We have dropped to about -50% of where we were 1 month ago. All in very rapid succession, large legs down at a time. More recently we’ve been through a lot of deep candles, marked by extremely high and typical exchange lag/errors. This is the feeling opposite of euphoria. Capitulation.
Looking at some indicators that handle parabolic moves well, we can see that these recent moves sub 5k, have bottomed out the RSIC indicator by @ErickSu. The only other time that happened, was when we parabolic from 6k to 20k. When the RSIC indicator is outside the bounds of 20 or 80, it tends to make large moves without impedance. This recent triangle breakout, has also put us back inside the RSIC inner range. We tend to ping pong between the two sides, until we out the outer range, and move back inward.
Considering where we are, and how far we dropped, this seems like a pretty good time to get long. If you look at the daily , we are declining, meaning a bulk of the traders are sitting on the sideline, waiting for confirmation of direction. That combined with the crazy and lack of resistance due to the 3 tiered fall played out, i think we could be moving up in a possibly staggering way. Like used to do.
If the fills out, never mind. I’m super in that regard. Targeting a -90% retracement from all time high.
Good luck trading!
Published at Wed, 28 Nov 2018 07:44:57 +0000