I shared yesterday an idea which i am still trading, updating it now with micro analysis of the elliott waves. I can see two possible retracements: Yellow and blue - flat and normal.
I personally don't see the flat one as a potential one since:
1) the low is a micro crash which you can see on the 1minute chart and thus has no real value.
2) we can identify the first wave of the 3rd initial wave and the target price obtained from the fib retracement tool (1.61) almost match the target price (of the third wave) obtained from the initial waves
A picture worth more than a long speech :)
initial wave i ii iii iv v
sub wave 1 2 3 4 5
target price of the initial wave obtained from fib tool
Why am I still long?
Simply because the RSI is showing some strength, this retracement is comforting me in this trade as it is a healthy 50-62% retracement. The top of the first wave also coincide almost with the 55ema on the 1H chart - bulls were not strong enough to push the price up. if it fails pushing the price up another time and reach the same price, it will most likely form a triangle pattern (depending on how long it takes to reach the top of course!).
I am now adjusting my trade with the new target price being 0.0084ish range. Of course, nothing is in stone and the past two weeks showed some really good strength of cryptos, so to be honest, I will monitor this one closely and might probably ride the position until the oscillators show some weaknesses (rsi divergence and macd crossover) instead of closing it at 0.0084ish. however in the short term, there might be a move to sell at this price to play the retracement level.
I personally don't see the flat one as a potential one since:
1) the low is a micro crash which you can see on the 1minute chart and thus has no real value.
2) we can identify the first wave of the 3rd initial wave and the target price obtained from the fib retracement tool (1.61) almost match the target price (of the third wave) obtained from the initial waves
A picture worth more than a long speech :)
sub wave 1 2 3 4 5
target price of the initial wave obtained from fib tool
Why am I still long?
Simply because the RSI is showing some strength, this retracement is comforting me in this trade as it is a healthy 50-62% retracement. The top of the first wave also coincide almost with the 55ema on the 1H chart - bulls were not strong enough to push the price up. if it fails pushing the price up another time and reach the same price, it will most likely form a triangle pattern (depending on how long it takes to reach the top of course!).
I am now adjusting my trade with the new target price being 0.0084ish range. Of course, nothing is in stone and the past two weeks showed some really good strength of cryptos, so to be honest, I will monitor this one closely and might probably ride the position until the oscillators show some weaknesses (rsi divergence and macd crossover) instead of closing it at 0.0084ish. however in the short term, there might be a move to sell at this price to play the retracement level.
