Lukso Soon to be listed on Uphold which is one of the few crypto onboarding exchanges that US residents can purchase coins and tokens directly from their bank accounts. This is a chart from Gate.io showing a pretty solid falling wedge pattern.
In which the price action has came back down to the entry zone and is retesting the falling wedge. Falling wedge patterns have around a 70% chance of breaking bullish and have multiple ways to find targets upon breakout to where the price action will likely end up during the next extension wave.
You can find the first target area by measuring the mouth of the falling wedge opening. This is the area at the top of the wedge which the upper trend line is drawn from the BODY of the candlestick on the chart. You can use a trend line to start this measurement. The second point you will want to extend your measurement trend line to is the beginning of the lower falling wedge trend line. Again, only measure from the top candle body to the bottom trend line candle body.
Then you will want to grab the measurement trend line you have just created and place it on the breakout of the wedge. This is the area at the bottom of the wedge that the price action has broken above the top of the wedges trend line you have drawn like in the chart we have here. Your first target will be the top of this line. A few tips, in some occasions you will see that the measurement trend line should have been placed on the lowest point that the price action has came back down after the breakout of the upper trend line of the wedge. The best tip I can give you is this…. If the breakout (the first candle to fully breakout of the wedge and close on a higher time frame than at least 2hr unless you’re trading patterns under the 1hr during intraday trading) breaks out with heavy green volume that supersedes all of the other volume indicator candles during the time period the wedge was formed, it is very likely that the pattern breakout should be measured from this breakout area. If the volume is not at the Brest candle, you may want to measure from the lowest point that the candles retested. The only problem with this is that you cannot predict the future and will not be sure if it will retest the top of the trend line at all. Especially on lower time frames, the price action often goes directly to the target. So, choose, are you a breakout trader? Or are you a retest pattern trader? Then stick to your trading plan. Keep a trading journal and then switch to the other strategy and find out which works best on which asset you’re trading and stick with that.
I often will go back and backtest the other strategy every month just to make sure the one I chose is still the better of the two.
Ok, back to some fundamentals. I don’t want to make this post too long consider the majority of us that came later than boomers have an attention span of 7 seconds lol (we all need to work on this, especially doing something that can be stressful when you’re just learning how to trade! Personally, I meditate and do yoga . If you saw me you’d never guess that’s what I do to get my head right and back on track. This has increased my win rate greatly and is arguably say it is one of the most important parts of my strategy!) anyways, I’m just going to leave a link here for coin market cap so you can do your own research on this coin and a link to uphold if you’re in the states to use.
Link to coin market cap, read the white paper, check out the community and the devs, what is the utility, what does the project set out to do? Do they have any partners? If so who and how big could the integration of the utility in this token get if the partners fully utilized it? All in all, learn as much as you can! Then come back here to TV and add any new related post alerts to your profile. TradingView has everything you need to do all the fundamental research also, unfortunate I am posting this from my phone and it was easier to put the link to CMC for this. I’d suggest you use TV for everything and pay for premium! It’s worth it just for the alerts! I am in no way an employee of TradingView nor do I benefit from saying this unless you were to use my link to sign up. You’re welcome to but, by no means am I asking you to!
Here’s a link to uphold for all the people in the U.S. looking to get into this coin!
I hope your enjoyed this post, let me know in the comments what you think!
