Dashpay Magazine: STEEM Gaining On Bitcoin In Heavy Trading
Many of the altcoins that are paired with Bitcoin can be overwhelmed by the industry leader’s strength. STEEM appears to be proving that it can stand on it’s own.
The STEEM/BTC trading pair is very new so many of the traditional analytical tools I like to use like the MACD (Moving Average Convergence/Divergence) and RSI (Relative Strength Index) oscillators aren’t going to be very accurate, there is just not enough data yet. But we can use simple trend lines and volume, which in the end are the best indicators, in my opinion.
If you check out the chart below provided by Bittrex, you can see that the downtrend dating back to the beginning of trading was smashed yesterday. Because of the tremendous volume associated with this move, we can say this is legitimate and not a head fake. If I were looking at this chart and didn’t know what asset it was from, I would still say this is an extremely bullish snapshot and wouldn’t hesitate to go long.
Part of the reason that I am so bullish on STEEM/BTC is that if you are trading this market you have clearly defined risk, which is essential if you are going to be a successful trader. In this market you could go long and set a stop below that trend line. Because we convincingly broke out, what used to be resistance will now act as support.
Moving forward I would not be at all surprised to see the price move down to test that trendline, that would be very healthy and a solid buying opportunity. I expect that the price of Bitcoin is going to rise this week so it will be interesting to watch and see how STEEM reacts.
Be careful when setting stops and be disciplined. If you are trading using a day long time frame do not overreact to temporary invasions of your stop price, wait for the 24 hour period to complete and then make a decision. Same goes for any time period you are trading; 1 minute, 5 minutes, 1 week or longer.
Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources.
Written by @fiatfluxx
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Keep calm and Steem on!
It's been said a million times, but don't let emotions cloud your logic. It's easy to panic or over-excited when things really start moving!
http://www.fscomeau.com/why-technical-analysis-is-bullshit/
Part of the reason that I am so bullish on STEEM/BTC [is because it jumped like 300% in a week, no shit sherlock] is that if you are trading this market you have clearly defined risk [really, a 3 month inflationary altcoin trading with bitcoin is a well defined risk, are you fucking high?] which is essential if you are going to be a successful trader [like the ones who are so successful, they spend their time writing about trading, rather than trading].
Moving forward [just in case time moved backwards] I would not be at all surprised to [I have no idea either way] see the price move down to test that trendline [that depending on the scale I choose is arbitrary], that would be very healthy and a solid buying opportunity [as opposed to what, a sick, liquid buying opportunity?].
Disclaimer: The information contained herein... ...should not be regarded as investment/trading advice. [No kidding? Well what is it then? A recipe for shit muffins?]