IOTABTC - A Chance To Find Support Before A Rally
Updated
Posting about a series of Alt Coins that follow my relatively straightforward criteria these days for when Bitcoin is in a slide. The four parameters are:
1. Above the 50 day MA (RED).
2. Above the 9 day EMA (Orange).
3. Above 50 RSI - Even better if Above 60 RSI .
4. Positive trend in MacD .
Coins already meet the parameters include VEN ONT BNB and EOS. ZIL will join them soon, as will WTC.
IOTA has an opportunity to be a perfect example of why I am confident when coins meet these parameters.
The problem: Will IOTA continue to retrace down?
My prediction - No.
Why? There is a reason why my parameters are what they are. I like multiple day/week long swing trades and I am relatively risk adverse. I like to buy a coin after its passed known resistance, when its bullish on the MacD and when its bullish or about to be bullish on RSI . I like to know that I have support close below my purchase price in the form of the 9 Day EMA and the 50 Day MA. Here, the price is currently finding support on the Fib Retracement level and is just below the 50 day MA. The 9 day EMA recently provided support on 5/30. Until a a candle closes below both the 9 Day EMA and the 50 Day MA, I see no reason to think it will continue to fall.
How to play it: If not already holding, then wait to confirm the RSI bounce off the 50 and wait for the price to climb back above the 50 Day MA and possibly 9 Day EMA . I was holding and took profit above 25000 so I too am trying to find the right time to buy back in as well. The initial target will be top of the triangle pattern at around 25000, and then focus will be on the potential breakout which would create a new target of 28000 and require reevaluation.
If the current candle does not climb back above the 50 day MA and above the 9 day EMA, then the RSI is unlikely to bounce on the 50 RSI and we will likely see a further drop in price which I do not want to be a part of.
1. Above the 50 day MA (RED).
2. Above the 9 day EMA (Orange).
3. Above 50 RSI - Even better if Above 60 RSI .
4. Positive trend in MacD .
Coins already meet the parameters include VEN ONT BNB and EOS. ZIL will join them soon, as will WTC.
IOTA has an opportunity to be a perfect example of why I am confident when coins meet these parameters.
The problem: Will IOTA continue to retrace down?
My prediction - No.
Why? There is a reason why my parameters are what they are. I like multiple day/week long swing trades and I am relatively risk adverse. I like to buy a coin after its passed known resistance, when its bullish on the MacD and when its bullish or about to be bullish on RSI . I like to know that I have support close below my purchase price in the form of the 9 Day EMA and the 50 Day MA. Here, the price is currently finding support on the Fib Retracement level and is just below the 50 day MA. The 9 day EMA recently provided support on 5/30. Until a a candle closes below both the 9 Day EMA and the 50 Day MA, I see no reason to think it will continue to fall.
How to play it: If not already holding, then wait to confirm the RSI bounce off the 50 and wait for the price to climb back above the 50 Day MA and possibly 9 Day EMA . I was holding and took profit above 25000 so I too am trying to find the right time to buy back in as well. The initial target will be top of the triangle pattern at around 25000, and then focus will be on the potential breakout which would create a new target of 28000 and require reevaluation.
If the current candle does not climb back above the 50 day MA and above the 9 day EMA, then the RSI is unlikely to bounce on the 50 RSI and we will likely see a further drop in price which I do not want to be a part of.
Note
To be clear, my 1st wave is not certain. I struggled with deciding whether or not that was in fact a 1st wave or just continuation of the retracement E. The effect of this being wrong would come into play in determining a target for the current elliot wave sequence because there would still be a 3rd and 5th wave to come, rather than just a 5.Note
Checked in to find out the price is torn and my signals are inconsistent. The day candle closed below both the 50 Day MA and the 9 Day EMA. It appears that the 50 Day MA is now acting as resistance. I have no doubt that that 9 Day EMA will be resistance as well if the price pierces the 50 Day MA. These are both negatives that make me hesitant to buy in at this time. However, look at the RSI bounce on the 50. This likely will not hold up unless the price breaks above the 50 Day MA. So for now, I see 1 box checked, and I will wait on the sidelines until the price breaks above both the 50 MA and the 9 EMA.
Also, I have changed my mind on this first wave. I believe my original chart was wrong, the first wave of that chart was likely just a continuation of the E.
Trade closed manually
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