A Look at the Bigger Picture, has to go down before it goes upHello guys,
Today I am sharing a look at AXS on the weekly. A lot of folks have been paying attention to their favorite coins on lower time frames, failing to recognize that there is a pretty clear and definitive thing happening in the bigger picture.
As you can see on the price chart, I have 3 different trend channels stacked ontop of one another. Using this technique allows you to forecast resistance areas in the case a coin is reaching all time highs, or can also be used when coins are trading at their lowest prices.
So far, price has responded very well to these channels, and uses them as rigid support and resistance zones. Whenever price has tipped its way either above or below any of these lines with a candle close, it always goes to the next one at minimum.
Our last weekly candle closed below a channel, and now we are in the middle channel. With this, I am expecting price to trade lower, whether it is the next line, or a million lines lower (joking). What I am mainly looking for as a patient lion waiting to attack its prey, is, for price to be touching one of the trend lines, while the RSI is simultaneously touching one of its support lines.
With these two requisites paired together, I am pretty confident in being able to pinpoint our bottom for a huge buying spree before we haul on upwards. Of course, when these two requisites happen, it will be time to look for horizontal resistances as well as some looking on lower time frames to be able to make for a tighter stop loss.
My goal is to:
1. Wait patiently until I think it has bottomed by looking on this weekly chart, needing both Price AND the RSI to be on their trend channel support.
2. Look at horizontal resistances and pay attention to lower time frames.
3. Pull the buy trigger when I am able to make a setup that allows for a tight stop loss.
4. Watch this same weekly chart and plan to sell when Price AND RSI are both at their respective trend channel resistance lines. (NOTE: more trend channels may have to be stacked to this chart, but maybe not)
5. Celebrate!
I hope you guys found something useful from my post. Have a great night everyone, and as always, be sure to do your own due dilligence.
