First Directional Trade: RDD
Market Theme: Bitcoin itself is in a parabolic run, the general hype appears to be fuelling the alt coins. I suspect this play wouldn't work as well in a "less hype" environment. It may retest the highs, or something to that extent but maybe not a new high. For this play to work in a "less hype" environment I believe it would need a longer horizontal consolidation. Going forward finding out this sort of thing will be interesting.
Other Coins: On the first RDD run I noticed that XVG went with it. Could be a coincidence - I literally have no idea... But XVG going again so could fuel this trade.
Reading the Tape: It is interesting to note that the depth of the order book showed a sell imbalance. However, the volume into the 6 push exceeded the sells (giving confidence to ignore the imbalance). Additionally the dips being scooped (tight ascending triangle) on the m30 suggests strength.
Order Execution: Until it gets above 6 the probability is probably relatively neutral. It may get back to sub 5, before eventually breaking out. So a small entry prior to the 6 breakout is fine, with a wider stop-loss.
Next entering/adding on the 6 break, means a tight stop-loss can be run with stop below the ascending triangle low.
Given the tight stop-loss want to reduce size into the first push to cover risk, there is an option to put this back on when the dips hold.
From this point it becomes a trade2hold until a reason2sell, and there is a very real risk of not capturing the full move. Although this peaked at 14, and you probably would have stopped around 11ish, it could have easily gone to 20 or more (have seen other coins do this).
Personally I sold this all around 7. Currently directional trades aren't suited for my account because I have liquidity to be nimble, and there are plenty of other more active opportunities. But this is exactly the trade I would execute in the future.
Note that it is reasonable to have tactical entries on dips to recycle position a little and cover risk.
Coin Stats: Market Cap=$70m ish. Circulating supply=28b. On the high volume days it was doing around 2-5b. When the pump originally started it did around 10b (much lower).
Other Coins: On the first RDD run I noticed that XVG went with it. Could be a coincidence - I literally have no idea... But XVG going again so could fuel this trade.
Reading the Tape: It is interesting to note that the depth of the order book showed a sell imbalance. However, the volume into the 6 push exceeded the sells (giving confidence to ignore the imbalance). Additionally the dips being scooped (tight ascending triangle) on the m30 suggests strength.
Order Execution: Until it gets above 6 the probability is probably relatively neutral. It may get back to sub 5, before eventually breaking out. So a small entry prior to the 6 breakout is fine, with a wider stop-loss.
Next entering/adding on the 6 break, means a tight stop-loss can be run with stop below the ascending triangle low.
Given the tight stop-loss want to reduce size into the first push to cover risk, there is an option to put this back on when the dips hold.
From this point it becomes a trade2hold until a reason2sell, and there is a very real risk of not capturing the full move. Although this peaked at 14, and you probably would have stopped around 11ish, it could have easily gone to 20 or more (have seen other coins do this).
Personally I sold this all around 7. Currently directional trades aren't suited for my account because I have liquidity to be nimble, and there are plenty of other more active opportunities. But this is exactly the trade I would execute in the future.
Note that it is reasonable to have tactical entries on dips to recycle position a little and cover risk.
Coin Stats: Market Cap=$70m ish. Circulating supply=28b. On the high volume days it was doing around 2-5b. When the pump originally started it did around 10b (much lower).
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