On the above 1-day chart Swingby has corrected 90% since late February with a following oversold condition (orange column) and now presents an ‘incredible buy’ opportunity. Those opportunities are unusual in a bull market.
Why bullish?
1) The corrective A-B-C Elliot wave following the the impulsive wave up. Lovely structure.
2) Support and resistance - Looking left price action has tested resistance twice and been rejected. Once in September 2020 and again in December 2020. Price action is now testing resistance as support at the same time as RSI is @ 20. Fantastic.
Is it possible price action falls further? Absolutely.
Is it probable? Very unlikely. Risk / reward ratio is very appealing.
Target? I don’t know. One possible move is shown below. Resistance levels seem ridiculous, $10 and over. Who knows, the market capital is quite small and the project does seem genuinely interesting.
Good luck!
WW
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1st test point @ 30 cents
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Bullish divergence emerges between price action and all oscillators. Remember this is a small market cap token, it will like move quickly if divergence is confirmed.
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A textbook Dragonfly DOJI candle prints on the 10-day chart.
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Complementing the above chart from June 29th, the 3-day chart is printing resistance breakouts on RSI and MFI as Stochastic RSI crosses up 20 (green shaded area).
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A bullish engulfing candle recently printed on the 3-day BTC chart (circled in green). They do not happen often, but when they do they're a fantastic signal - look left.
Remember the Dragonfly DOJI recently printed a couple of weeks ago?
750% rise to resistance.
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Price action breaks out of resistance and lands on past support - look left.
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Price action breaks out of resistance. Two near term targets identified.
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A nice clean break of the 50-day EMA (blue line). Look left.
Blue skies ahead.
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10-day chart prints a textbook bullish engulfing candle.
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Higher lows continue as stochastic RSI crosses up - excellent
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On support (again!) - perhaps this time it will be different!
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Not forgotten about this one... price action bullish divergences are growing in number on the higher time frames. On the 4-day chart below you can see '7' bullish divergences are active between price action and the oscillators, which is unusually high for such a high time frame. Should be like a rocket when it finally decides to move.
The main graph is in log scale, right? Why do you use log scale?
without_worries
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@susta, Correct. I use on he small time frames (for me that is daily charts) to iron out those big moves. Without applying a log scale to the graph it would become difficult to successfully identify support and resistance.
Same graph:
First in linear
Second in Log
susta
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@without_worries,
Thank you for your answer. Sometimes you use EMA, sometimes SMA or another one, how can you determine which one is better?
Normally I try not depend on moving averages. They don't help measure probability of future price action as many would have you believe. Why not trigg and leach or Box–Jenkins for forecasting? (I'm a stats guy by trade).
I prefer SMAs on daily and EMA on larger time frames, weekly for example.
EMAs (50-day black below) respond to recent price action whereas SMAs (50-day in blue) look further back. Is one better than the other? I don't know if I'd put it in those terms. If a asset is super volatile, defer to something less sensitive and vice versa. It all depends.
Personally I'd avoid using them altogether. Practice the oscillators instead of the overlays. Understand the importance of 'looking left' and historical price action. I'm always amazed how so many will ignore looking left / support and resistance of years of data in favour of a moving average on a 4hr chart! Makes no sense. Makes no money ;)
susta
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@without_worries, Thank you, i think i have learnt something in parallel with my level of understanding :D
sashakusak
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Current thoughts on this one? I got in at .15, however, wasn’t expecting such a steep drop below .08. I’m contemplating adding more here. Would love your insight!
without_worries
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@sashakusak, Was in at .18 myself. Action: Do nothing.
The BTC chart below is worth a look. The above USD idea was published (at orange circle) in conjunction with study of the BTC chart below. There was a 'incredible buy' opportunity + bullish engulfing candle whilst on support (look left) - as good as it gets. Now we have the same condition again - price action is remarkably oversold.
I would not add to a losing position, that's exactly what 95% of traders would do. Instead I would wait, do nothing. No one knows where the market bottom is.
The risk reward ratio is now incredibly appealing for buyers.
sashakusak
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@without_worries Thank you! I appreciate the guidance. I’m learning a lot from you! 👍🏼