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Trade Recommendation: ADABTC

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A sudden spurt in prices is to be noted because it may offer us a trading opportunity. However, we should avoid jumping on to a running train. We should wait for a consolidation to enter, which offers us a good risk to reward objective. One such cryptocurrency that fits the bill is ADA. Let’s see, why we like this.

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Key points

  1. ADABTC jumped 400% within 3 days
  2. It is finding buying support at lower levels
  3. This is a momentum play

Daily chart

As ADABTC has a limited trading history, we shall not analyze its weekly chart. On the first day of its trading activity, it registered both its lifetime high and lifetime low. Intraday, it hit a high of $0.00002 and a low of $0.00000202.

After the huge volatility of day 1, the volatility reduced and the digital currency gradually drifted towards the lows.

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However, on November 26, ADABTC started its bull run, which took it from a low of $0.00000339 to a high of $0.00001690 on November 28. That’s a huge 398% move within three days.

Thereafter, the digital currency corrected the massive move. We like the way ADABTC found buyers at the 61.8% Fibonacci retracement levels of the rally. This shows that buyers want to own it on dips.

For the past four days, the digital currency has been forming inside day candlestick patterns. This shows a coiling formation, which is likely to either breakout or breakdown soon. We want to enter a long position if the virtual currency breaks out to the upside. Let’s see the entry and exit levels on the 4-hourly chart.

240-minute chart

We find that ADABTC is currently trading inside a tight range. On the upper end, $0.000013 has been acting as a stiff resistance. We want to buy a breakout of this level. Thus, we recommend a long position at $0.00001330. We expect this breakout to carry the digital currency to $0.0000169 levels. A breakout of this level will propel the digital currency towards the lifetime highs.

Therefore, we suggest booking only 50% of profits at $0.00001690 and holding the rest with stops at breakeven.

As this is a momentum trade, we don’t want to keep a large stop loss. Our stop loss is $0.000011.

Note

ADABTC has a short trading history. Hence, we suggest trading it with only 50% of the normal allocation. We want to attempt this risky trade because if it moves according to our expectation, we can benefit from the momentum.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



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Cryptocurrencies

Trade Recommendation: Ethereum

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The market is overbought and we have to expect for a correction. The price can bounce from the resistance zone formed by the downtrend line and 700.00 resistance level and continue downward movement. But we also know that sometimes crypto markets move out of logic. We must be ready to catch a new strong upward movement to new highs. Is it possible? I think yes and Bitcoin confirms it. We can use a breakout above the resistance zone for opening long trades. Entry level is 708.00 with stop orders at 670.00 level. Profit targets should be 750.00 and 800.00 levels. This is high risk trade and the best entry levels are much lower. Don’t invest too much in this market now. It’s better to wait for a good correction and buy based on solid reversal signals. If you don’t use leverage, trading volume for this trade is up to 5% from your deposit.

Market: ETHUSDT
Buy: 708.00
Stop: 670.00
Profit Targets: 750.00 and 800.00

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The trading signal is based on Poloniex chart.
Disclaimer: The analyst are some invested in Ethereum.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



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Recommendations

Trade Recommendation: OMNI/BTC Range Trade

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There are many cases when the market goes bearish after generating an all-time high. That’s the case for OMNI/BTC. It posted an all-time high of 0.04824320 on the Poloniex exchange on May 31, 2017. In doing so, it created a massive wick above its body, indicating the presence of sellers at that level. The market tried to sustain its ascent, but it turned bearish after failing to hold support at 0.02 on July 9, 2017. OMNI/BTC is still in a downtrend but there’s an opportunity to make a quick buck.

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Technical analysis reveal that the market is currently holding long-term support at 0.0025. Every time the pair hits that support level, it bounces and takes out resistance at 0.010. It also breached resistance at 0.015 on three separate occasions. In addition, RSI is also respecting long-term support level. On top of that, the market is already up 12.23% as of this writing. Indicators are flashing a legitimate bounce.

The strategy is to trade the range. Buy zone is between 0.0025 and 0.005. The target range is from 0.010 to the top end of 0.015. Sell midpoint if selling pressure is high; otherwise, ride until 0.015.

Take note: the market is still in a downtrend, but you can make money by buying low and selling high during the consolidation period.

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Weekly OMNI/BTC Chart on Poloniex

As of this writing, OMNI/BTC is trading at 0.00354581 on Poloniex.

Summary of Strategy

Buy: 0.0025 and 0.005

Targets: 0.010 and 0.015

Stop: move below 0.0025

Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



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Cryptocurrencies

Trade Recommendation: NEM

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The trading idea is based on a trend reversal signal. The price is at SMA100 which is strong resistance line. If the market can break this zone and move above the local swing highs, we’ll get the trend reversal signal. DMI and MACD support upward movement. We have good buy opportunity for long run. Buy orders should be placed at 0.00004100 level with stop orders at 0.00001900 level. Profit targets are 0.00009000 and 0.00012000 resistance levels. If you don’t use leverage, trading volume for this trade is up to 10% from your deposit.

Market: XEMBTC
Buy: 0.00004100
Stop: 0.00001900
Profit Targets: 0.00009000 and 0.00012000

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The trading signal is based on Poloniex chart.
Disclaimer: The analyst does not have investments in NEM.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



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