A couple days ago we posted a chart on OMG titled "it's time to back up the truck!!! (well almost)". Well it looks as if the setup is starting to happen and it's time to grab your keys, start the truck, grab some beer, wings, and hotdogs and put down the tail gate! O.K. maybe that's me preparing for the Florida State - Alabama game tonight, (ROLLLLLL TIIIIDDEEE) but that's later. Right now I'm focused on OMG. And it appears that we have hit the final Inflection point. Now I labeled it REFLECTION and for a reason. We cannot just assume it's time to enter a trading position ( 1/4-1/2 at a time, this is critical money management), we must now reflect and use our tools to decipher the overall trend and our signals to confirm it. The trend is our friend and the only true thing that matters in trading. I have drawn a long term trend line going back to the I.C.O. I have also put the consolidation box we spoke of in the previous article where the coin had broken from the box, but we need 2 things to happen, #1 a retest of the box. Well it has retested and is trending slightly up parallel with the shorter linear regression line. #2 we need a break out signal to confirm this. We are currently, and have been since the ICO, in and overall uptrend so I like this setup enough to entered a 1/3 position at this time with a very tight just stop below the 52 day high. I will wait for confirmation of our trade signal prior to entering the another 1/3 on the breakout, and the final 1/3 when we have full thrust. I see several traders post trades with FUTURE buy points based on current information. This is NOT a future buy point. This is a future take a look at point! Use this information for potential setups. yes put on the hot board to monitor and analyze. But providing a "future" buy point is silly for an active trader. Why do you ask, well traders regardless of indicators are looking at trends. And we do not know what the current trend is, let alone some future trend. A trend is connecting two points and drawing a line between them and finding the slope. The best we can do is provide a current point, so we connect the current with the past, draw the line, find the slope and whallaaa, we have the most recent trend line. Without future data one cannot definitively state where the current trend is as the slope would be based on the current point and some future point. So if data is changing and trends are continuously changing based on time frame, how can you conceivably pick a point in the future and say if it hits this point buy, and then point to current data with the assumption it will still be relative in the future? Ok maybe I'm jealous someone else has a crystal ball. Well I don't and neither do you and fortune tellers are a farce. We must use our tools to provide the best probability that AT THE TIME we are buying, we are most likely buying in an uptrend. I'm not saying this information is useless, quite the opposite, you just have to do your research and insure at the point the signal triggers your trend data is showing the same. Do NOT just put in an order at some future price, that's lazy trading and for losers. Use this information in conjunction with your analysis prior to entering the trade. So we are stuck with the tedious duty of looking at indicator and signals, before buying and then after we buy monitoring them. If you want to win at trading, you must be vigilant and willing to put in the time, not just follow someone posting a future target, with some colorful fluff, and a few indicators and provide an if then statement. You might as well throw a coin in the air with head i'm long tails i'm out. In truth the coin toss does generally better than the average trader. Don't be average, and don't be lazy. Do your homework and put in the time.
Long OMG brothers and sistere! and I'm in! But do your homework before buying!
Thanks for reading and good luck in the pit today!
Long OMG brothers and sistere! and I'm in! But do your homework before buying!
Thanks for reading and good luck in the pit today!
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.