OMG/USD 02/07/2018
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Given the larger picture of the market correction concerning Bitcoin and other Altcoins, experienced investors know that we are in a perfect purchasing position and have been for the last week. Good positions like these market-wide do not come around everyday. What goes up must come down, and although sentiment about the future of cryptocurrencies in 2018 went from the insane mania of "TO THE MOON!!!!1111" to suicidal ranting about exiting the markets forever and committing suicide in about three weeks, I remain very bullish for this year.
However, when it comes to the markets, and my money, I must set my feelings aside and look to the charts to tell me when to enter and exit. OmiseGo has been on my radar for a while, and although in my investment portfolio this has been a buy and hold since October 2017 (at $7) I take the oppurtunities that the universe presents to me in terms of my trading bag. OmiseGo is one of the most popular crypto currencies for remittance payments, a pressing concern for many migrant workers who send money back to their families, many of those families in trustless countries where the financial institutions can't be trusted not to scalp 25% or more from the amount in random fees.
I usually focus on BTC charts, but today decided to look at the USD charts for a change.
The first thing we can see is the potential completion of the Elliott Wave corrective cycle. After a charted 5 wave impulse movement to it's ATH, we have followed through the flow of OMG's corrective pattern. We now see a bounce off of the bullish historical trend-line, and several days of upwards movement. Volume hasn't increased as much as I would like, which is why I'm entering this position with a tight stop loss (relative to Crypto, 10% is tight).
We now see a bounce off of the bullish historical trend-line
We also note that the RSI hit a lower low then it ever did in recent time, bouncing right off the 30 mark, and upticking with the volume noting potential accumulation in a sideways low-volume channel for the last couple days. Again, all the traders are looking at the same charts, and if I am entering into a position here, the low volume would suggest targeted accumulation by bots and other sharp traders. However, my stop loss is still set.
The main reason for this position is my TD Sequential indicator, which has been very useful to me lately for timing the markets. You can see we have a red 9, the first one during this whole down-trend. We also see that it is considered a "perfect" set-up 9 because the close of the red 9 is equal to or lower then the close of the red 7 & 8. We need another daily candle before the count can commence again, giving us our exit signal.
I've set the potential target to the EMA 50 zone, due to support turning into resistance and vica versa. Also the MA's tend to act as resistance or support depending on whether the price is trending above or below. If all goes as planned, I will exit my position at the target and wait to see if price breaks through the MA resistance, buying the breakout and re-entering most likely with leverage at that point. The P&L Indicator is set-up to hypothesize a trade utilizing $100 for example purposes.
The exit strategy would be a triggered stop loss, below the low of yesterday's candle. Alternatively, utilizing the TD Sequential, your exit strategy would be once a red 2 begins trading below a red 1.
Good luck, and happy trading!
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