What I was saying last time.
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My expected target of $7.70 was reached and she's coming down now. The reason I expected it to turn around at that level is because it's common for highs to retest resistance lines. That being the purple line. When we break above the resistance line, it more often than not becomes the support line.
Here's the image I posted in chat the other day.
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And here is what it looks like now.
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Another thing I could have done was measure the big dip with the Fibonacci arc tool.
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Notice I never had to overlay the arc with the fib ring, I only had to draw it along the top and bottom of the big dip.
The lines with digits on it is a fibonacci retracement tool and it's widely used by professional traders. 10 out of 10 times when I use this tool I'm impressed with how it works. When measuring uptrends, you start from the low and draw it to the high and vice versa when measuring a downtrending graph.
The levels do matter and in any case where it happens the most ideal buy "in an overall uptrending graph" would be when it dips down to that red line ( 0.236 ) though it never happened this time.
What we do see though is a that big dip from the other day, it dropped down to the 0.618 at $3.15 before skyrocketing to $7.70 the first time.
It shot past the 1.618 ( Golden number ) on the retracement tool before reaching the 1.618 on the ring. Because of that, I will record the scenero and add it to my data base for the next time I see this happen.
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The volatility on this is a lot rougher than usual compared to the rings on other charts I've done. It's swinging up and down, and up and down the 1.618, as it works it's way down that ring. As for the 2.618 line, meh. Sloppy but effective enough. I can see those 3 dips headed toward an uptrend, which would most likely make a very long accending triangle which would indicate a dip for off in the distance. I may entertain that massive triangle later, it could be awhile before it shows face.
How far down the circle will the candles go ? I'm suspecting it to bounce off the 2.168. the next ring is pretty far out there and I honestly couldn't tell you where it'll land. I wouldn't mind if it shot past the next ring and landed on the ring after that one. We'll see.
Because the triangle ( I did not draw because there isn't enough data to see it's top ) is so massive it could be quite a while before that really big dip happens. I think it will be higher than $14.
Trading these lovely dips takes about a day. Sell on the 16th, buy on the 17th, sell on the 18th, and now it's the 19th and I'm preparing to buy the latest dip.
In the event you try this coin, do not buy the top the resistance will be tested for a 4th time and everytime that happens it's more prone to breaking the resistance.
Paper trade, and learn as much as you can about technical analysis.
