NEO/BTC - Looking for an upward break on a descending triangle
NEO/BTC has been in a descending triangle pattern for a few weeks now, and we're beginning to enter the period in which a triangle pattern breaks out either way.
These patterns are usually bearish, however an upward break on a descending triangle is very powerful. As most of you are long traders, keep an eye out for this. If you're happy hedging, then you can place conditional buy/sell orders above and below the pattern and profit both ways.
The main thing leading me to look for an upward break is the VZO/price divergence/trend. The VZO is definitely on the upswing, and has developed a trend that has held 3 times during the pattern. However, triangles develop a lot of pressure in the market, as bulls and bears fight to win predominance, so traditional signals can sometimes be unreliable.
This one is more for "wait and see" analysis, rather than any specific buy/sell recommendation. I'll be looking to profit from either movement, but I'll be very conscious of a throwback or pullback, which are generally bad signs for a break.
I'll update this as the movement develops. We should see some clear action well within a week.
Cheers and good luck.
RJR
These patterns are usually bearish, however an upward break on a descending triangle is very powerful. As most of you are long traders, keep an eye out for this. If you're happy hedging, then you can place conditional buy/sell orders above and below the pattern and profit both ways.
The main thing leading me to look for an upward break is the VZO/price divergence/trend. The VZO is definitely on the upswing, and has developed a trend that has held 3 times during the pattern. However, triangles develop a lot of pressure in the market, as bulls and bears fight to win predominance, so traditional signals can sometimes be unreliable.
This one is more for "wait and see" analysis, rather than any specific buy/sell recommendation. I'll be looking to profit from either movement, but I'll be very conscious of a throwback or pullback, which are generally bad signs for a break.
I'll update this as the movement develops. We should see some clear action well within a week.
Cheers and good luck.
RJR
Comment:
NEO continues to develop, with a new upswing that should test the pattern in the next few days. We're entering the territory in which descending triangles usually break, so I'll be watching this one closely.
Comment:
The NEO break is well and truly on, as we've had a daily close above the triangle pattern. We've only got about 13% to go before we hit all time high levels, and given the overall weakness/uncertainty in crypto land it'd be surprising if we breach that level right now.
Hopefully you got in on this one! I'm not a fan of providing specific entry and exit points. I'm happy to explain where I get into and out of trades, but people are far better off doing their own analysis, and understanding WHY someone recommends something. Just following specific entry and exit points without knowing why is a recipe for disaster, and it's also not going to lead you to long-term success. Just my opinion though :)
Hopefully you got in on this one! I'm not a fan of providing specific entry and exit points. I'm happy to explain where I get into and out of trades, but people are far better off doing their own analysis, and understanding WHY someone recommends something. Just following specific entry and exit points without knowing why is a recipe for disaster, and it's also not going to lead you to long-term success. Just my opinion though :)