LUNA has been on a good recent run but will it continue?
One of the best moving cryptos lately has been LUNA and I did take a trade after the very clear signal on the middle daily chart on Feb 24th. Before this price was very choppy trying to figure it self out but then the Feb 24 bullish candle breaking above the 60 resistance was a great signal.
As usual I will have my 4hr chart on the far right, daily in the middle and the weekly time frame on the left side.
The 4 hr chart currently is in a struggle with the 88 resistance with price pulling back. I would like to see that support area of 83.50 hold up if a re entry is in the cards. We can also see the support made on March 4 at the 80 price.
On the middle daily chart, I first want to compare move A to the recent move B and see how similar the move is. It is important to gauge past moves to determine the length of the current trade you may be in as often they will be close. Also watch the candles when they are getting too overextended from the 14 day MA but really look at how parabolic the move is (what degree) the steeper price moves the shorter the move will be. Both A and B are very parabolic.
On the weekly time frame I point out the 100 resistance. It is very normal to show support or resistance at whole numbers but especially psychological levels like 100.
I also point out the nice trendline but also what I mean when I say overextended to the MA. The larger the white space from the candle to the MA the more likely it will be heading back to the MA soon. I base a lot of my style on this.
Overall I liked the recent move on LUNA but did exit after the Feb 28th candle. It was very obvious a pull back was coming based on everything discussed.
If LUNA can hold 83.50 and for sure 80 and then break back above 88 then I will be possibly looking for a re entry.
As usual I will have my 4hr chart on the far right, daily in the middle and the weekly time frame on the left side.
The 4 hr chart currently is in a struggle with the 88 resistance with price pulling back. I would like to see that support area of 83.50 hold up if a re entry is in the cards. We can also see the support made on March 4 at the 80 price.
On the middle daily chart, I first want to compare move A to the recent move B and see how similar the move is. It is important to gauge past moves to determine the length of the current trade you may be in as often they will be close. Also watch the candles when they are getting too overextended from the 14 day MA but really look at how parabolic the move is (what degree) the steeper price moves the shorter the move will be. Both A and B are very parabolic.
On the weekly time frame I point out the 100 resistance. It is very normal to show support or resistance at whole numbers but especially psychological levels like 100.
I also point out the nice trendline but also what I mean when I say overextended to the MA. The larger the white space from the candle to the MA the more likely it will be heading back to the MA soon. I base a lot of my style on this.
Overall I liked the recent move on LUNA but did exit after the Feb 28th candle. It was very obvious a pull back was coming based on everything discussed.
If LUNA can hold 83.50 and for sure 80 and then break back above 88 then I will be possibly looking for a re entry.