Long
MATIC/USDT Ascending Triangle on daily
Updated
I like this chart and am considering a long. We've seem to be forming an ascending triangle, have a rising daily 200, 50 and 20MA, as well as a rising 8 and 34 EMA and price is above them all.
It's difficult to say that a breakout is imminent, but we're certainly in an uptrend.
There's a few different ways to play this.
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Strategy 1; Enter now, at this level (2.2) with a stop X% below the recent low on Dec 17th. The thesis is that if price got below there, it is not being held by the EMA8 anymore and this is NOT the breakout that we are looking for.
or
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Staregy 2; Wait for price to fall back to an area of confluence between the 50 Daily SMA and the rising support line of the triangle. and enter at an area of value
or
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Strategy 3; Wait for the breakout and then place a limit order on the throwback, with a stop exit X% below the low of the breakout candle.
On balance, I think strategy 2 or 3 gives the best risk to reward profile. If I was a permabull, then of course, I'd look to enter now with a stop below the recent lows. That might turn out to be the best trade but we can't control the price of the asset we are trading and it's usually better to wait for price to come back to us. For now, this is going on my planned trades watchlist.
Note
Taking a position of about $500 in Matic is a fair idea also and just riding it.Trade closed: target reached
[img]Ok, same at NEAR, we are above the upper BB so a correction on weekly to the breakout pint is most likely. Trim. Look for an area of value and buy relative strength on this one.
Note
Probably look to buy on confluence of the 20MA or 34 EMA and the breakout. Watch to see how it goes.[img]
Note
[img]First, there is relative strength in this chart so if we are 'playing' alts this is one to be playing. I like the 50 MA, but there may be further selling generally.
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