A bottom isn't confirmed until an asset breakouts and starts a new trend, but we have several indicators and early signals that can help us spot the bottom before the breakout, let's take a quick a look at those for our learning and entertainment.
For OMGBTC , we look at the weekly chart, please follow me:
- Let's start with the general chart structure. We have the top peak reached around April 2017, after which starts the decline. What I want you to notice here is how the candles start to form a curve. First the price starts to drop hard and then it starts curving. Looking at the far right of the chart, you can see the negative 9 count on the TD sequential, ending with a "Hammer candlestick", which is a reversal candle when it shows up at the bottom of a trend.
- You can also notice the #1 and #2 candles, the last two candles on the chart, which are Dojis, reversal candles. Supported by above average green , the highest since April. * These are signals that can point to an upcoming change of trend.
- You can also see the curving, which is the first indicator from top to bottom. The blue line is forming a curve... Same with and which are now oversold. You will be able to see these better on the daily time frame chart below.
- If by any chance these signals do not develop completely and send OMGBTC price where we want, we have a stop loss. And this protects us if the trade goes wrong.
- Trades can be good or bad, it is for the market to decide. Our job is to spot the signals and make sure to buy low. Wait... patience, and then sell when we hit our goal.
- Let's continue with our trade...
Let's be more specific on some of these:
- Look at the . It is already almost on the side. Yet, OMGBTC price is still hovering around its bottom. This is a development and what we call .
- The is already out of the oversold line and moving up and the is going after a huge jump.
- The Fibonacci tool I use to determine our targets (resistance) and support.
- Now... Let's trade!
Trade instructions for Alan Masters Trades PREMIUM supporters
Buy in: 0.000520 - 0.000565
Targets for OMGBTC by Alan Masters
Note: More targets might be shared in the future.
Stop loss: Close weekly candle below 0.000479.
CHANGE ALWAYS COMES UNEXPECTEDLY
We run from change.
Change tends to be hard.
When it comes to us we look at it, and we want to run really far, why is that?
When change comes, it is time to experience and adapt.
This time around change came unexpectedly, this change is good news, we are changing to become more positive.
So change for you and me doesn't have to be bad or hard, let's learn from everything that we experience and continue to be grateful for all that we have.
Any close above 0.000479 this week (ends Sunday), keeps this trade active.