Hello everyone :)
I made some silly, irrational trading decisions a few weeks ago so I decided to step away from the charts for a while as I'm capable of doing some serious self destruction when I start trading emotionally.
BUT I'm learning from my mistakes and moving forward. ITS GOOD TO BE BACK. I will now be trading with a more structured plan and more rigid rules, and I will also start recording my trades in a journal.
Ok I'll stop rambling now, Lets get to the point.
Ripple has broken some key levels recently and is definitely now bullish. Whether this is a long term shift in market structure or a short term correction we do not know yet.
- if the upper trendline of the downwards descending channel is broken (simultaneously breaking the 0.8 key psychological level and daily range) then we could be witnessing a more significant change in market structure. This will be particularly exciting is we see a break and close above the 50 and 200 MA.
- alternatively XRP may just be retesting the supply zone (area of consolidation) at 0.8. After which we may break down again. In this case we will be able to confirm the market is still bearish.
XRP has now done its second bullish break and close above the 8MA.
I've become particularly fond of trading ranges of support and resistance.
- These key levels are usually found at round psychological numbers and are very strong and magnetic zones.
- You will also notice these ranges are roughly the same distance apart. If you measure between the ones I have drawn (0.5, 0.65, 0.8, 0.95, 1.11) they are separated by 25%.
- Ranges are good to trade because you can almost guarantee price will bounce between them - so they can give you the confidence to hold your trade that extra bit longer.
- If price breaks and re-tests one of these key levels, open a trade to the next psychological level (as long as you have either enough confirmation or if it is in the direction of the overall trend).
We can see XRP broke the 0.65 resistance, came back down to re-test and is now bouncing off the level using it as a support.
Further confirmation of the trade:
- break above resistance on lower timeframes - completing the head and shoulders formation
- bullish divergence on MACD on the daily
Reasons for First target:
- At the next psychological level and trading range
- Also a strong supply zone that has not been tested
- Top of the channel
If we break above 0.8 (and the level is retested) hold trade to 0.95.
My final target is another major supply zone that has not been testes and key area of consolidation at around 1.04.
Stop losses just below each level. Ill be using the 8MA and candlestick analysis for exits.
Let me know your thoughts!
I made some silly, irrational trading decisions a few weeks ago so I decided to step away from the charts for a while as I'm capable of doing some serious self destruction when I start trading emotionally.
BUT I'm learning from my mistakes and moving forward. ITS GOOD TO BE BACK. I will now be trading with a more structured plan and more rigid rules, and I will also start recording my trades in a journal.
Ok I'll stop rambling now, Lets get to the point.
Ripple has broken some key levels recently and is definitely now bullish. Whether this is a long term shift in market structure or a short term correction we do not know yet.
- if the upper trendline of the downwards descending channel is broken (simultaneously breaking the 0.8 key psychological level and daily range) then we could be witnessing a more significant change in market structure. This will be particularly exciting is we see a break and close above the 50 and 200 MA.
- alternatively XRP may just be retesting the supply zone (area of consolidation) at 0.8. After which we may break down again. In this case we will be able to confirm the market is still bearish.
XRP has now done its second bullish break and close above the 8MA.
I've become particularly fond of trading ranges of support and resistance.
- These key levels are usually found at round psychological numbers and are very strong and magnetic zones.
- You will also notice these ranges are roughly the same distance apart. If you measure between the ones I have drawn (0.5, 0.65, 0.8, 0.95, 1.11) they are separated by 25%.
- Ranges are good to trade because you can almost guarantee price will bounce between them - so they can give you the confidence to hold your trade that extra bit longer.
- If price breaks and re-tests one of these key levels, open a trade to the next psychological level (as long as you have either enough confirmation or if it is in the direction of the overall trend).
We can see XRP broke the 0.65 resistance, came back down to re-test and is now bouncing off the level using it as a support.
Further confirmation of the trade:
- break above resistance on lower timeframes - completing the head and shoulders formation
- bullish divergence on MACD on the daily
Reasons for First target:
- At the next psychological level and trading range
- Also a strong supply zone that has not been tested
- Top of the channel
If we break above 0.8 (and the level is retested) hold trade to 0.95.
My final target is another major supply zone that has not been testes and key area of consolidation at around 1.04.
Stop losses just below each level. Ill be using the 8MA and candlestick analysis for exits.
Let me know your thoughts!