I will be writing about several indicators beneath the chart – highlighting them a bit first – & then fully applying them to the chart – so stay with me:
--> The indicator just beneath the graph is the quite common . I highlighted the golden crosses (crossing beneath zero where blue line comes on top) & the death cross (where they do the exact opposite above the zero line).
--> The "SMI" or Momentum Index, which typically talks about a “buy” if we enter the green zone, & a “sell” if we enter the red zone (+ a similar crossing of the two lines as with ).
--> Moreover, I drew the horizontal levels ( areas), & the Fibonacci speed resistance fans throughout which price moves along (also areas)
What we are seeing in this first graph is where the buy signals were for the 'SMI', i.e. When that oscillator hits the green buy zone (it should actually really dive into it). But even then, 13/12 could be considered a buy opportunity, especially as it went together with a cross in the . This provides us our first entry point in Vechain.
We then see two red lights in the 'SMI', but momentum is still intact in the & in the overall chart. So we did not have to sell here. However, if we look at the third large vertical in red, you can see that this one coincided with a bear cross in the 'SMI' ànd a death cross in the MACD: big selling time!
Furthermore, if we check our chart today, we see that we have severely entered the green buy zone, where the two lines are practically crossing, but not upward yet. Nevertheless, this provides us an almost great buy signal – either now, or when the curve upward takes place. If we combine that with a pending cross in the , we have ourselves a new BIG BUY moment!
What else is there? Well, if we take ( , which has to be above 70 to talk about overbought, & beneath 30 for oversold), & combine this with the 'SMI', we see a similar story. started to curve upward and give vechain a momentum around or before 13/12 or near the buy signal in the 'SMI'. Furthermore, there was no real sign yet of negative momentum in the first red crosses in the 'SMI', BUT the third cross was accompanied by a reversal in the trend from a severely overbought level to all the way down the drain. And...Conclusion: that is where we are today: looking at a severely oversold level in the , accompanied by an almost cross in the , and an 'SMI' going for us as well.
And as a last one: the interplay of 'SMI' and . As you can see, the 'SMI' gives us relatively clear buy and sell signals on extremes. The 'CMO' is useful in determining the overall trend and strength, and in combination can also give us better pointers as to whether we should or shouldn’t get out and whether we are still in a downtrend or not. Have a look for yourself:
Vechain is a fundamentally super-sound investment candidate (partnership with BMW , etc. - just check my website for the analysis!), & in this post we zoomed out on the graph to verify the next entry point. We are not there YET and might even experience some additional downward pressure first, but we are very close to a major trend reversal and a next bull run comparable to the first one we saw. Vechain is young, has potential, and is just about to get started.
Note: this is not to be considered investment advice - DYOR.
Bullish cross in the MACD still in the making.
Nevertheless, I partly agree with the POV of @rubenB89 . Moreover, I think the price manipulation intension will be priced in rapidly.
On the other hand, if you believe this to be a great business project, you have another unique opportunity to put your money where your thoughts are : in Vechain.