Hedge Against BTC
This is a very simple explanation on why I am long in BNB coin.
It is a great coin to hedge against BTC because it is a very useful utility token that Binance users use to reduce fees in transactions and liquidate their positions. If you see this graph, BNB has gone up around 250% since the start of 2019 while bitcoin has rallied down most of the time.
The line in black is the trendline that effectively crossed in multiple resistance and support levels shown in the little red circles. It would be a good opportunity to enter this trade because we are trading below the trend line.
Also, to confirm this trade and that we are actually sitting in a resistance level we can see that the EMA 50 (purple) has been a great support for the last three months and right now we are trading below it, so the ideal strategy is to buy the support and sell the resistance.
Sometimes could happen that the candlesticks drop below the EMA 50 and usually hit their next support at the EMA 200 (green) in that case I would double up on my position and create a DCA, HOWEVER WE RULE OUT the possibility that this happens by using the STOCHASTIC indicator that potentially indicates that a buying pattern (or trend reversal) will soon start.
Thank you guys. If you really like this idea THUMBS UP I am studying technical analysis to be even more professional.
It is a great coin to hedge against BTC because it is a very useful utility token that Binance users use to reduce fees in transactions and liquidate their positions. If you see this graph, BNB has gone up around 250% since the start of 2019 while bitcoin has rallied down most of the time.
The line in black is the trendline that effectively crossed in multiple resistance and support levels shown in the little red circles. It would be a good opportunity to enter this trade because we are trading below the trend line.
Also, to confirm this trade and that we are actually sitting in a resistance level we can see that the EMA 50 (purple) has been a great support for the last three months and right now we are trading below it, so the ideal strategy is to buy the support and sell the resistance.
Sometimes could happen that the candlesticks drop below the EMA 50 and usually hit their next support at the EMA 200 (green) in that case I would double up on my position and create a DCA, HOWEVER WE RULE OUT the possibility that this happens by using the STOCHASTIC indicator that potentially indicates that a buying pattern (or trend reversal) will soon start.
Thank you guys. If you really like this idea THUMBS UP I am studying technical analysis to be even more professional.
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