*CRYPTO TRADING* SETUP in RIPPLE! - Full Explanation!
This is a new trade setup in Ripple.
Chart 1 shows the 4hour candles, and three significant resistance points.
Price has currently made a range between two points that would have contained a significant amount of longer-term stop orders.
Price "dropped" into this price range by making a strong move downward, as indicated by the first candle in the price range.
THIS is significant, because it shows there was an abundance of sell orders in this spot compared to buy orders. Thus, the sudden and strong downward, BUT unsustainable, move!
This second chart is of the 30min candles. You can see how properly structured this range is upon closer inspection.
The RED LINES show the range boundaries, while the GOLD STARS show where price has touched, thus creating, these boundaries. It is preferable when they bounce from side to side in this "non-concurrent" manner...(I think I'm using that in the right context!)
The BLUE LINES show where the stop orders have been previously placed. You can see that price targets these areas before reversing it's direction.
POINT A is our concern!
The stops placed here by the upmove (also at POINT A) have just been liquidated. When price bounces off a resistance point like this, takes out the stops, then moves back up strongly...it is a strong signal that price will breakout in that direction!
This is a very suitable spot to go long!
@lonnie.sprinkles
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If XRP is going to rally, this area looks like a high probability spot to start from. There is some support here from the daily chart, and also the 4h chart has closed above the downtrend line from the 5/17 high to the 6/1 high. Added to my position and will be holding for what could be a nice rally.
Yes...it's making "suggestions" at moving upward....but looks to be consolidating into a tighter range. I'm watching the 30min candles at the moment...looks like price has stalled!
A rally will be good...I also have a position.
What do you plan on blogging about, prosperous..I pressed the follow button and noticed you're just getting started out!
I'll probably be writing about things I'm interested in like trading, investing, horticulture, health & exercise, self-improvement, and anything else I learn about. I've been enjoying reading posts on Steemit for a while, but I never really considered blogging until I realized there are quite a few things I know quite a bit about. Right now I'm just taking it all in, there are a ton of quality posts with great information - like yours.
Thats awesome. I think a lot of people struggle to find things to blog about initially. Thanks for the compliment. Hopefully I get to read some of your posts soon!