This trade is based on the premise that his past daily candlestick might have back some ground to provide a buying opportunity. The technical tools we are using involve a fibonacci trend extendor.
We took the base of the rally from 11/25/2017 and extended it to the first severe retracement from last week and extrapolated it into where it might be a good idea to lighten up or take portions of your positions off to prevent giving back too much profits or getting in too high.
We still have to be open minded to much higher exchange rates than just 0.40 which is my medium term target. Also notice the ladder which extends price in % terms much higher than 100% extension. But in the end we are only using this model to determine where it would suggest price might stall or consolidate before taking potential pullbacks to the downside. In a raging bull market its always a good idea to set these extrapolations much higher than you think, my last post I was surprised by XRP/USD and we would have held on for much longer.
We took the base of the rally from 11/25/2017 and extended it to the first severe retracement from last week and extrapolated it into where it might be a good idea to lighten up or take portions of your positions off to prevent giving back too much profits or getting in too high.
We still have to be open minded to much higher exchange rates than just 0.40 which is my medium term target. Also notice the ladder which extends price in % terms much higher than 100% extension. But in the end we are only using this model to determine where it would suggest price might stall or consolidate before taking potential pullbacks to the downside. In a raging bull market its always a good idea to set these extrapolations much higher than you think, my last post I was surprised by XRP/USD and we would have held on for much longer.