I’ve talked about DeepBrain Chain (DBC) a couple of times on my YouTube channel and even entered a trade in the past week, since releasing that video I’ve posted updates how the trade is developing as time goes on, my latest update mentioned it wasn’t looking good for the NEP-5 AI token.
Not too long after posting this update, DBC decided to break to the down side and I cut my losses so that I could protect my capital and re-enter when it was in a better spot. And for those of you wondering “How do you know when to cut your losses?” Well that comes down to having good entries and a risk to reward plans set up, explaining that takes a whole blog post of its own.
My job now is to figure out where I’ll be entering and where my profit targets are going to be. I consider my self to be an aggressive trader so I usually like to enter a trade at key locations before it shows that it’s done going down. When being aggressive with entries it’s important to have a checklist of support confirmations. This could include moving averages on higher time frames, trend lines, Fibonacci retracements, etc.
I’m expecting the trend line to be a spot where we’ll see a bounce of about 20%-30%, there’s no way to know if it will turn around completely especially when we haven’t even hit that spot yet. I’ll need to wait and see how the price reacts to the trend line before I can determine whether we’ll be turning around. DBC could easily retest the bottom as it hasn’t really formed a solid bottom, however I believe that the market is being prepped to have an alt coin rally in the month of May which increases the probability that DBC might go for another run. Regardless, whether it turns around completely or not I believe there is a potential for a small profit trade to be had here. All we can do now is to wait and see if it will give us that bounce off the trend line around the 45-55 sat region.
Follow me on YouTube:
https://www.youtube.com/channel/UCOnTAMsdAIGBDIlz98Ffxmg
Follow me on Twitter:
https://twitter.com/TheCryptoJourn
Make sure to follow the blog for new posts every Tuesday & some bonus posts every now and then!
