Using the RSI on Daily-sized candles has been an excellent tool for deciding when to close a trend-following position and start looking for a counter-trend play.
Key points to look for:
Bullish divergence has to reach the oversold range
Look for re-test of support before entering
Aim to close at major resistance
Ideally the open interest on Bitfinex would be in opposition to the desired direction. Shorts start to flip longs = added momentum on the up move
In this case, I've never seen this much counter-trend momentum build up in the past 16 months of price action. It would make sense, because the last major support was at $5,800 and it has not been made in to resistance.
I'm not calling an end to the bear by any means, but we are long overdue for some upside
Key points to look for:
Bullish divergence has to reach the oversold range
Look for re-test of support before entering
Aim to close at major resistance
Ideally the open interest on Bitfinex would be in opposition to the desired direction. Shorts start to flip longs = added momentum on the up move
In this case, I've never seen this much counter-trend momentum build up in the past 16 months of price action. It would make sense, because the last major support was at $5,800 and it has not been made in to resistance.
I'm not calling an end to the bear by any means, but we are long overdue for some upside
Trade active:
NEO/USD up 9% so far
Also longed EOS/BTC, up 31%
ETH short closed at breakeven (stop was moved just in front of entry when we dipped before moving back up)
Stops moved slightly to profit, additional bids set at the support we blew past.
Also longed EOS/BTC, up 31%
ETH short closed at breakeven (stop was moved just in front of entry when we dipped before moving back up)
Stops moved slightly to profit, additional bids set at the support we blew past.