My buddy Alex
who has a radio show discussing cryptos saturday afternoon, has been bugging me to look at Guppy. My first look was UGGGGLLLYYYYY. But even ugly charts can tell us something about what the market is doing and more importantly where we can take advantage of patterns. But the chart is telling us something very interesting as we dig a little deeper. Note I did not put a fibb pattern on here either. You have to use various tools to decipher each equity separately. This one upon closer look is telling us that it really wants to break out but the timing is not right. I started where the trend reversed as this was a clear reversal pattern that led to an up trend marked by the lower red line. GUP tried to break out not once or twice, but four times to no avail. But it appeared there were not enough buyers to keep up momentum. Think of starting a lawn mower, you have to pull the cord a few times to get it started. I love this pattern but it's not a for sure thing as the market seldom hands us for sure trades. It has since gone into a classic consolidation triangle pattern
(though I use rectangular boxes as triangles often give us fake breakouts). OOPS WTH happened. Well it didnt' break anything, it only tested the the lower support trend. It never reached the lower trend line
and has now broken back through the secondary trend line
. What's this all mean. Well GUP may be wanting to break out here. It is still to early to enter a position but it's time to make a plan of action and monitor closely. If you look at the a graph of Kore that I posted a day or so ago we saw a similar pattern, high spikes followed by a parabolic uptrend a small dip and then pop. It has repeated that pattern 4 x's now. GUP appears to be making a similar move here and coincidentally 4x's. We have had a nice tight consolidation followed by a quick dip and a pop back to the secondary trend line
. But it is still to early to enter a position until we have a trigger signal which would be a break out above the channel box around the 0.00067 mark. If your a guppy fan, and many are like my buddy Alex
, I would be monitoring close. I have a core position and will be looking to buy the breakout, and scalp the purple line, if it dips back to the top trend line
I will buy the breakout again and hold for for a breakout above the purple line again and depending on what happens sell or yes cost average up and add again. This is a Plan of action, not a trade on the fly. I am looking for a specific move and I have a specific plan. I learned early not to deviate from the plan. Yes I missed many big runs, but it kept me from having disastrous losses. JP Morgan was once asked by a reporter if he ever regretted getting out of a stock to soon. His response is framed below the antique picture I have of him above my trading desk. "I made a fortune getting out to soon". Successful traders take profits when they can and are not afraid to take losses when they have to. Make a plan and stick to it. I tell the tribe, the goal is to take $10,000 and make 10% 48 x's. That is $970,000. 10% gains are base hits. easy money if your vigilant. 50-75% gains are home runs, and more often then not you lose money trying to get one. However basehits sometimes reward you with a home run and this could be one, but keep your eye on the prize and trade tight and wise. I have many quotes from successful people framed. I frame them because they keep me in check to remember how important it is to have a plan.
Keep in mind I have a specific pattern and plan for this coin, if it doesn't happen I will continue to re asses the chart and provide an update if time allows. Thanks for reading good luck in the pits!!!
PS If I see someone add another coffee
cup to a crypto chart or a head and shoulders
pattern in the wrong trend I'm going to throw up. NO it's not forming a cup pattern as much as I could fit one in there.