I tend not to buy small cap stocks because the bid ask spread and liquidity typically suck. ETP is a small cap stock but is listed on Bitfinex so has reasonable liquidity.
The current ETPUSD setup provides a risk reward scenario that meets my profile and channel trading strategy. It has found support on the bottom diagonal green trend line numerous times and has now broken through the downward resistance on the descending light blue diagonal.
I like the opportunity because it's relatively easy for me to see where the pattern breaks down and pick a stop loss appropriately. That SL is also protected by the 100 MA. It has also tested the resistance line a number of times and formed a higher low scenario on a meaningful timeline (6 hours). We have two previous highs, 50% up from where it is trading today. This gives us a nice initial target to take some profits and leave more in. A horizontal (blue) resistance will offer a challenge on the way up but could then likely turn to support.
Trading Analysis is about reviewing the data and understanding patterns that fit your trading strategy in order to minimise risks whilst opening opportunities for meaningful gains.
Target 1 : 5.5 which is near the previous high, meets the upward diagonal resistance and is the 0.786 FIB of the previous bear run from 4 Jan.
Target 2 : 8.2 which is the 1.618 FIB of the same bear run.
Stop loss : 3.4 This will also protect if BTCUSD drops down 8% to 13000 from its 14000 at time of writing.
I'll continue updating if I get 5 likes.
The current ETPUSD setup provides a risk reward scenario that meets my profile and channel trading strategy. It has found support on the bottom diagonal green trend line numerous times and has now broken through the downward resistance on the descending light blue diagonal.
I like the opportunity because it's relatively easy for me to see where the pattern breaks down and pick a stop loss appropriately. That SL is also protected by the 100 MA. It has also tested the resistance line a number of times and formed a higher low scenario on a meaningful timeline (6 hours). We have two previous highs, 50% up from where it is trading today. This gives us a nice initial target to take some profits and leave more in. A horizontal (blue) resistance will offer a challenge on the way up but could then likely turn to support.
Trading Analysis is about reviewing the data and understanding patterns that fit your trading strategy in order to minimise risks whilst opening opportunities for meaningful gains.
Target 1 : 5.5 which is near the previous high, meets the upward diagonal resistance and is the 0.786 FIB of the previous bear run from 4 Jan.
Target 2 : 8.2 which is the 1.618 FIB of the same bear run.
Stop loss : 3.4 This will also protect if BTCUSD drops down 8% to 13000 from its 14000 at time of writing.
I'll continue updating if I get 5 likes.
