Similarly to my previous trade with XLM (link below) I have decided to take the opportunity and capitalise from the over extension of STEEM token. Normally you would have to have an account on an exchange where you can short the coins, however, I had a chunk of STEEM sitting in my exchange account so I decided to sell my coins temporarily to hopefully repurchase them with a profit.
This time STEEM overextended to around 48000 sats (RSI 70+) and as soon as it started showing signs of popping back down I have placed an order to sell. As expected the elastic band sprung back to it's support level which previously acted as resistance which in this situation was around 39500 sats. Check out the graph below - my entry and exit point are shown as blue/green lines.
Result is another profitable trade in the bag with approx. 12% profit.
Link to my XLM trade: https://steemit.com/cryptocurrency/@andrius1/live-trading-2-xlm-elastic-band-effect
