The D1-chart of BTC-STEEM is very interesting at the moment and gives a forthcoming purchase signal for me what shows my personal appraisal. I found this at this point from several aspects. Basic idea for all situations is the KISS setting for me: Keep-It-Stupid-Simple.
The first consideration takes the chart pattern in the visor: Topically there originated because a 🔴 Double-Bottom-Pattern. From it some traders derive directly an action, others prefer the 🔴 "2618" strategy. The third possible perception is the 🔴 "channel surfing" after M.J. Parsons for me. Two of these approaches are discussed currently also on Tradingview. In addition there is with Steemit an other beginning, the Elliot-Waves has to the basis.
The Double Bottom situation shows schematically the picture 1. Importantly is present that the Close of the second "Bottom", the right, may not lie below the closing price of the left "Bottom". In between appears a V standing on the head which may have no priceaction signals. It may concern with these candles, e.g., no relevant pinbars. If the peak of this reverse V was broken through, the "Double Bottom formation" is confirmed. Then some grief are lying in wait here with her buy order. This is the direct action of which I spoke on top. Vice versa there still exists the Double Top variation.
The "2618" strategy with the Double-Bottom goes a more conservative way and waits for the pullback on the Fibonacci line 61.8. Then here the purchase order is placed. This promises a lower risk, if the Trade unfortunately is going short. And at the same time it raises the profit margin, it should go in the right direction. This Trading strategy has a very good performance, even if some "Rockets" can be missed with it which carry out no pullback on the 61.8th retrace. Schematically this is evident from the picture 2. — How did it come to the name "2618" and who has invented it? The figure 2 stands for "Double" and "618" is the tip to Fibonacci. The trader Jason Stapleton "discovered" it from his experience with "harmonic patterns" with the Forex-Trading.
The "channel surfing" after M.J. Parsons assumes from the fact that chart patterns move in channels — upward - down - sidelong. If these channels are "injured" by the fact that the closing price lies beyond the channel borders, need for action is indicated.
Downward-channels become basic also down traded; one waits, until the price has come at the upper end, before one begins the trade (possibly in untimely development). The reverse is valid for upward trends. At the topical STEEM example one can well recognise that the downward-channel was broken through, direction long. Then the pullback followed the upper channel limitation — "kissing the trade away" — now it should go long. Then an up-channel will thereby establish. Result also from this interpretation: Purchase signal.
This installation is looked from the perspective of the trader who goes to the planning of a new engagement. The set-up introduced here should support my argumentation that at the moment a purchase opportunity is given for STEEM. If you see STEEM as a "long-term" investment, you will never look back, however, you will let the channel be channel and also you will not take any short-term profit aims like R1 and R2. Now presumably you take action immediately — the channel has broken and re tested — or at least when the point of reverse V has broken with the Double-Bottom. Lucky hands!
If you are interested in the statements of others, look at Tradingview.
I hope, it was informative, amusing and well clear what I have brought here "to screen". Who could read this here and understand, needs no Disclaimer, or?
And always "to the joy!"🇨🇷
🔴 Thanks to
@flauwy for the inspiration and animation to write this post!
