Okay, bottom fishing is not the easiest task when you're about to choose an investment strategy. So what?
Strong signals should always be taken into account: trading, after all, is mainly about computing expected values; hence, you're expected to pick the likeliest event up, no?
So what we want to do here is pretty simple: altcoins are experiencing a long lasting downtrend, both with respect to BTC and to fiat money. But XLMBTC is something you cannot compare to its peers like EOS,ETH,BCH and so on. XLMUSD has fully retraced, but finally it has found strong support in the 0.08$-0.09$ area. Now, we do not want you to buy it immediately; rather, we prefer to sketch two strategies which are consistent with your risk profile.
The first one is very cautious: you can buy once XLMBTC breaks the upper resistance of the falling wedge. We are looking for a potential reversal, so, as always, do not forget to check first RSI and Volume indicators: the key point of this approach is to recognize that XLMBTC is currently undervalued; yet, strong weakness should never be bought.
The second strategy is much more aggressive, as you could buy once the Tenkan Sen is broken and then, accordingly with your target, you can trade in the falling wedge. We see that today this currency pair is already pushing hard, but still has found strong resistance in this area. Not sure it can climb to the upper resistance too easily, hence wait for confirmation, personally I don't feel comfortable buying at these levels yet.
Strong signals should always be taken into account: trading, after all, is mainly about computing expected values; hence, you're expected to pick the likeliest event up, no?
So what we want to do here is pretty simple: altcoins are experiencing a long lasting downtrend, both with respect to BTC and to fiat money. But XLMBTC is something you cannot compare to its peers like EOS,ETH,BCH and so on. XLMUSD has fully retraced, but finally it has found strong support in the 0.08$-0.09$ area. Now, we do not want you to buy it immediately; rather, we prefer to sketch two strategies which are consistent with your risk profile.
The first one is very cautious: you can buy once XLMBTC breaks the upper resistance of the falling wedge. We are looking for a potential reversal, so, as always, do not forget to check first RSI and Volume indicators: the key point of this approach is to recognize that XLMBTC is currently undervalued; yet, strong weakness should never be bought.
The second strategy is much more aggressive, as you could buy once the Tenkan Sen is broken and then, accordingly with your target, you can trade in the falling wedge. We see that today this currency pair is already pushing hard, but still has found strong resistance in this area. Not sure it can climb to the upper resistance too easily, hence wait for confirmation, personally I don't feel comfortable buying at these levels yet.
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.
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.