Hey guys, Cameron here. I've been really busy the past couple days, and haven't had a chance to write. Today, I'm a little pressed for time, so I'm going to post a crypto chart (everyones favorite) and try to explain what indicators I use so anyone can easily visualize it.
So i'll keep this terse, but feel free to ask any questions or point out any concerns (in fact, those would all be greatly appreciated, we are in this together, right?)
Well first, I want you to notice what is called Elliot Wave Theory, or at least a pretty solid representation of it. I talked about it in my previous post, but essentially, it says that prices move in large impulses, or waves. The numbers 1-5 represent how this works.
Here's a quick spewing of facts about that:
-There are always 5 waves on the way up.
-Three on the way down (they are complicated to draw, so I didn't have much time to explain them in this post, but am happy to answer questions.)
Rules:
Wave 2 cannot retrace 100% of wave one. Check
Wave 3 cannot be the shortest. Check
Wave 4 cannot overlap wave 2. Check
Wave 2 tends to retrace 50-70% of wave 1. Check
Wave 4 tends to retrace 30-50% of wave 3. Check
Waves 1 and 5 are around the same length. Ehh, check.
So as you see, assuming a decent amount of volume, you perhaps may have been able to see this set up before it actually happened, and trade off of it. Whether it be getting lucky and buying at the beginning, or patiently waiting to buy the dips, there were plenty of chances to make money.
Now notice another strategy I commonly use. Look at the 9 and 90 day moving averages. As you can see, any sort of convergence/divergence between the two usually preface a large decline/gain. As I'm sure you see, they both offer some strong support and resistance. Look at the very end of the chart (the present). Perhaps with a crossover of the 90 day MA, XLM is ready to show a little movement? Be sure to look at the other indicators I explained in my prior post for more reassurance.