IOTUSD - 65% Countercyclical Long Trade?
Updated
Hello traders, I'm back!
Well its been a while since my last post. I've been working on some exciting new projects since January of this year ;) It was timely, as the market tanked shortly after (oops!), and it turned into a shorter's game (and that's been fun!). I didn't want to bother you guys with my short selling, as I know most of you are long traders, so I took a pause.
Anyway, I took a peak at the markets this morning and figured its an interesting time to return to TradingView and continue posting educational takes on the market.
What do we see?
The crypto market is widely oversold, and if we take a look at altcoins like IOTA its clear that a rebound is near.
- Volume profile is shrinking on our bottom indicator
- RSI and MFI are showing bullish divergence
- And we are far below EMA50 on the 3D!
How do we trade this?
Usually altcoins extend all the way down to the 0.11 fibo or even further (measured from the top and bottom of the previous major bull run). Once this is over, there is usually an opportunity to ride some of the market making by watching a breach of the 0.11 fibo to the upside. This is normally followed by a rally to the .618 (measured from the top and bottom of the previous local sell off). So we have:
- Bullish confirmation above $0.76 USD
- TP level around or below $1.29 USD
;)
***This is not investment advice and is simply an educational analysis of the market and/or pair. By reading this post you acknowledge that you will use the information here at YOUR OWN RISK
Well its been a while since my last post. I've been working on some exciting new projects since January of this year ;) It was timely, as the market tanked shortly after (oops!), and it turned into a shorter's game (and that's been fun!). I didn't want to bother you guys with my short selling, as I know most of you are long traders, so I took a pause.
Anyway, I took a peak at the markets this morning and figured its an interesting time to return to TradingView and continue posting educational takes on the market.
What do we see?
The crypto market is widely oversold, and if we take a look at altcoins like IOTA its clear that a rebound is near.
- Volume profile is shrinking on our bottom indicator
- RSI and MFI are showing bullish divergence
- And we are far below EMA50 on the 3D!
How do we trade this?
Usually altcoins extend all the way down to the 0.11 fibo or even further (measured from the top and bottom of the previous major bull run). Once this is over, there is usually an opportunity to ride some of the market making by watching a breach of the 0.11 fibo to the upside. This is normally followed by a rally to the .618 (measured from the top and bottom of the previous local sell off). So we have:
- Bullish confirmation above $0.76 USD
- TP level around or below $1.29 USD
;)
***This is not investment advice and is simply an educational analysis of the market and/or pair. By reading this post you acknowledge that you will use the information here at YOUR OWN RISK
Note
We're touching the trendline! Good spot to start a long position. Stoploss position is not too far below. Keep in mind a long position on this pair is countercyclical as we have the EMA50 below the EMA200.Trade active
Trade closed manually
Bullish move never played out! Here's the bearish scenario:Note
IOTA is above the 0.11 local fibo (support) and back to our previous buy (where we exited the trade previously as well) level, but it is under performing BCH. We will want to buy if it break up above the current level and re-enters the channel.4HR snapshot:
Daily snapshot:
Note
No trade:Order cancelled
Idea closed.
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