Today I want to talk about a pair that I am watching very closely to trade for the long term which in my opinion has a long term opportunity. What I mean about long term is that this trade (if I open) will take more than 2 months, so its a that type of trade that I open, setup the stop-loss and take profit and forget it! Because if I keep watching this trade every single day, I will probably close in one week thinking that 200 pips (for example) its enough, BUT that I can see here is much more than that and for that to work, I have to forget it and probably look every Friday.
Above is showing the four graphs that I normally look in EVERY SINGLE market and they are: 4hr, daily, weekly and monthly. I don't look any other, it doesn't mean that I think the rest does not work but FOR ME, it does not!
Anyway, let's jump into the graphs:
BTC/USD Monthly:
Looking at the monthly chart we can see that we just touched the April 2013's high (359.34) which in this case is very important because we can see that the bears (sellers) tried to make a top at this time but we they didn't hold it and broke this level, it went absolutely crazy!!! We can also see that RSI and Stoch is reach oversold levels.
BTC/USD Weekly:
Now looking the weekly, we can see that this pair might be in a kind of a wedge or maybe some of you guys might call a triangle (does not matter in this case). Also today we just touched the 0.764% fib: 276.34, an important level. Also a very important signal here is the RSI, just touching the 30 line AGAIN! (we did few weeks ago and worked as support)
BTC/USD Daily:
Looking at the daily now, I added the fib extension and we have reached today the 0.5% fib and I have added a trend-line and it just jumped from there. Looking now at the RSI, we can see that it just crossed above the 30 line which also works as a bullish signal.
BTC/USD 4hr:
In the 4 hour charts I normally add more trend-lines because I treat this graph my sketch graph and I use for scalping sometimes BUT I don't use 4 hour to make conclusions or plans!!! I just use to see the levels more clearly and especially impact into some levels (support or resistance). Looking at this BTC/USD 4hr chart, I added some trendlines and a channel and all ends up where we made the low today. To confirm, I want to see a close above the medium line of the channel (dotted purple line). By having a close above of the medium line, we give me more conviction of my view in this pair and more confirmation that we have a low in place.
Conclusion:
From the 4 charts that we just looked, I think we have a great chance to see this pair going up in the long-term. Stop loss I recommend to put at 247.00 level and first Take-profit: 582 (50% fib on weekly) and final Take-profit at: 719.00.
Take care guys and good luck,
By Thiago Duarte
Chief Strategist at Duarte Investment Group
thiago@duarteinvestmentgroup.com
No comments:
Post a Comment