Trading Fam,
In my last video, I mentioned how I had been learning to trade more patiently, giving myself those high-quality, high-probability winning trades. This is a perfect time to illustrate that strategy.
With our altcoin market overheated, I am expecting more rest, accumulation, and pullback in many of our alts. The selection of even decent entries is very slim. It's time for us to sit back, wait, and let the trades come to us again.
The TOTAL chart shows us more clearly what may occur. Let's discuss a few important indicators on this chart.
First of all, we see my indicator popped a BUY signal right around 3T. We had a safe bet at that point; we were going to see quite a bit of buying action in the altcoin space. Indeed, we did. The altcoin market increased by about 25 percent and went all the way to 4T, at which point the sellers came back in. Now, we are in the middle of a little bit of a pullback, and I think there could be more to come. I am expecting at least a touch of that rising 50-day SMA, currently at 3.4T.
Supporting my thesis here are the crossover of the RSI to the downside of its 14-day MA, the MACD cross, the Chalkin money flow decrease, and the HMV indicating high volume during these sell-offs. Leverage is being liquidated. This is healthy!
It is possible that the total market cap could drop even further, all the way down to that 3.24T PoC on the VRVP. That is where we see most of our volume in alts has occurred. Keep these two targets in mind. Once hit, I will begin looking for more trade entries once again.
✌️Stew
In my last video, I mentioned how I had been learning to trade more patiently, giving myself those high-quality, high-probability winning trades. This is a perfect time to illustrate that strategy.
With our altcoin market overheated, I am expecting more rest, accumulation, and pullback in many of our alts. The selection of even decent entries is very slim. It's time for us to sit back, wait, and let the trades come to us again.
The TOTAL chart shows us more clearly what may occur. Let's discuss a few important indicators on this chart.
First of all, we see my indicator popped a BUY signal right around 3T. We had a safe bet at that point; we were going to see quite a bit of buying action in the altcoin space. Indeed, we did. The altcoin market increased by about 25 percent and went all the way to 4T, at which point the sellers came back in. Now, we are in the middle of a little bit of a pullback, and I think there could be more to come. I am expecting at least a touch of that rising 50-day SMA, currently at 3.4T.
Supporting my thesis here are the crossover of the RSI to the downside of its 14-day MA, the MACD cross, the Chalkin money flow decrease, and the HMV indicating high volume during these sell-offs. Leverage is being liquidated. This is healthy!
It is possible that the total market cap could drop even further, all the way down to that 3.24T PoC on the VRVP. That is where we see most of our volume in alts has occurred. Keep these two targets in mind. Once hit, I will begin looking for more trade entries once again.
✌️Stew
Note
I recognize that the chart I posted is the total market cap. TOTAL2 and TOTAL3 charts look similar. The data above still applies and gives us a great estimate as to how far you can expect a pullback. Obviously, lower mc and lower volume traded coins would become more volatile and can be expected to pull back further than the larger mc coins will. Note
TOTAL has now come down to touch that 50-day EMA as expected. Will we drop further, or is this it? Watch closely because my indicator is starting to give BUY signals again on quite a few ALTS. It could be go time now.
Stewdamus Trades -
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Prophesying the price action of markets one chart at a time.
Crypto predictions, targets, how-tos, and much, much more!
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stewdam.us
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Stewdamus Trades -
Prophesying the price action of markets one chart at a time.
Crypto predictions, targets, how-tos, and much, much more!
Never miss a prophecy. Sign up for my free newsletter at:
stewdam.us
Prophesying the price action of markets one chart at a time.
Crypto predictions, targets, how-tos, and much, much more!
Never miss a prophecy. Sign up for my free newsletter at:
stewdam.us
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.