ChainLink is a coin that I'm keeping in my portfolio for a longer term. Sadly it's in downtrend since Jan. 18th.
Even if something is in downtrend you can easly make profit.
"Easly" if you would follow couple simple rules, and but "things" at strong reversal points:
1) Buy when RSI (relative strenght index) is low.
2) Compare one correction to another.
3) Learn Fibonacci at basic lvl.
4) Learn Triangle Formations basics.
5) Use other indicators (like MACD or EMA) but not too many or you will get a mixed signals.
6) ALWAYS play with stop-loss
ChainLink: 1-it had low RSI, 2-it did 100% of previous correction (red squares), 3-it was close to 88.60% which may indicates a reversal (it's deep correction), 4-it was at the bottom line of that Triangle Formation, 5-it clearly broken through 30 EMA line (but you need to wait for it, so you wont buy at the bottom if u're using big EMA numbers).
Why Link can have another reversal soon:
- RSI is clearly overbought.
- It's in Rising Wedge Formation (which is bearish).
- It did 100% of previous upward move (green square).
- It's at quite strong resistance line (which is around 4900 satoshi).
- We're still in bearish market.
DISCLAIMER
I’m not a certified financial advisor nor a certified financial analyst. The contents posted by me are for informational and entertainment purposes only. Don't follow any analysis blindly, and make your own decisions. Always plan your trades and play with stop-loss.
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