New to trading here. Playing with some spare money as we are locked in house. Could you please explain what this chart means? I suppose the 3 is a resistance point and the 4 being support?
AyoKu
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@yulgutierrez, trading and trading based on charting are two different things. Please do not trade off people’s chart. They are all ideas and not financial advice. With that being said, I hope you do some research.
This chart is based off of the Elliot wave theory and you are correct.
-the white circle is a gap, normally gaps will get filled asap or overtime.
-The green lines are the current channel this is trending in with top line being resistance and bot like being support.
Thank you!! It seems like your trade idea still stands as of now. I entered a very small position @24.87 just to get the experience.
Is this a etf you would trade in and out of ? Or hold ? Just curious
AyoKu
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@yulgutierrez, I just drew this for a friend who’s invested. I’m into the crypto market, but if I was to trade this, it would be a long term hold. I would try to swing trade it for medium term hold as well. I see a gap around the $18 area so I would expect this to fill eventually. Use that to your advantage. I’m not familiar with this market, but I’ll update this in a week and see how things look like then
Day trading is a whole different game, do not day trade unless you know what you’re doing or use 10% of position only until you’re comfortable.
yulgutierrez
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@AyoKu,
Really appreciate your knowledge and taking the time. When you say a $18 gap that you expect to fill does this mean the etf has a chance to drop to $18? Sorry not understanding