Here I will attempt to document a price action plan and trade setup focusing on XRPBTC pair.
DAILY STRUCTURE - From my observations, price has come down to fill an imbalance, located at left of chart, signalling liquidity injecting into the market, usually i have noticed that XRP can wick into an area to test that area then go towards it which leaves no imbalance area. (See yellow markings) - It wicks first, then the liquidity injects to that level and perhaps breaking it, i suspect it is wiping orderbook clean by wicking, then it is easier to inject the liquidity for the desired result. XRP does move differently, but we can use the basic strategies in order to try and position ourselves utilising BTC to XRP trades.
DAILY MOMENTUM - Trend perspective - Daily OVERWATCH printed a clean divergence before this pump equalling 37%, 1BTC = 1.37BTC. Nice. Aswell after this pump candle, the MFI came down and bounced while price bounced of the TM scalper levels which could have been a nice entry in itself equalling 19%. OVERWATCH has not reached its upper levels on the daily yet, will look to do 4hr analysis next, but looking at the daily, down at 0.000016 level at this point would be a bounce off the tm level is current optimal entry zone for daily.
H4 STRUCTURE: Have zoomed out so one can really follow the structure here, please appreciate what i am sharing, no deletion or movement of key levels and structure to obscure what I am showing. You can follow from left to right the price movement pattern, zig zag.
H4 MOMENTUM - Trend perspective - H4 OVERWATCH is topping out aswell as MFI (Bottom pane), we will need at least two good candles pushing above this BOS - H4 level for a valid breakout, and then, after that happens we will await the pullback for an entry. Until we get a rejection at this level, or a breakout, this is all i can say for now. Any comments welcomed.
I will update the chart each day if Price action requires until we take an entry and we are only looking for LONG positions within this thread. EG: Switching BTC into XRP for increased BTC holdings.
I will update the chart each day if Price action requires until we take an entry and we are only looking for LONG positions within this thread. EG: Switching BTC into XRP for increased BTC holdings.
Comment:
Looking at XRPBTC Chart: Daily closed above our area, just, following moved up to the next daily risky area above. It not a structure top but still an area of interest. Look to the H4 chart, you can see one large engulfing candle... first one in the whole move, but it stops at the first demand zone for h4 area, we are now working with this potential zone between 0.00001880 - 0.00002065, if breaks lower could see lower H4 areas for entries, if we see nice patterns in the H4 area now, we can enter small portions, knowing the market, we have broken higher and now testing for a base to potentially mark up, if it cannot form the base it will fall through so sl or downsized entry is important here with a bias to average out a position if it does fall lower into the lower demand areas.