LQTY pumped - What now?

7 déc.

Intro:
Some of you, if anyone sees these, are probably already getting tired of this same format, but I like making these types of posts since it can help a lot of people to think twice before they just FOMO uninformed into a coin.

Why did it perform so well these past months?
See chart below:

It had a breakout on its downwards trendline, retested and had an up candle right after retesting the trendline. This indicated that LQTY would outperform in the short-mid-term.
Notice this is on LQTY's BTC-pair ( LQTYBTC)

Another setup that shows confluence is the double bottom on the BTC pair as well:





So what do we do now?
There are essentially two ways I personally like to trade these coins.

1. The trend swing trader
   
2. Fractal price trader
   

Let's start with the trend swing trader's approach:

Swing Traders Approach:

1:We Notice higher highs and lows, flatback bullish HA candles and price above its most recent contraction. This is on the 4H:


2: We go to the corresponding smaller timeframe to the 4H which is the 15 min:

We draw the centers of contractions in the smaller timeframe, but draw a fib once we get a buy signal on the Adaptive MCVF while price is below the center of contraction for the latest 15 min contraction!

Let the 0.146 fib level be the bottom of the range for the fib - enter on the 0 and use the -0.382 or -0.764 fib levels as your stop loss - you choose based on your sizing, prefered risk to reward or style (i know some people don't like tight stops because it makes them easier to shake out.


Now let's go through the Fractal Price Trader

Fractal Price Traders Approach:
It might not be right to call this method a fractal price trader - the idea is that price is fractal, what happens in the bigger timeframes, usually also happens in the smaller timeframes, but more times as you zoom in.

The idea is that you see higher timeframe priceaction want to replicate itself in the smaller timeframes.
What I would do if im doing this, is waiting for price to retrace after it has topped out - afterwards I draw a fib from that range and let it retrace before buying.
I prefer to let it retrace to 0.5 or below before DCA-ing, I like to use the Adaptive MCVF as a signal to help me:



For now LQTY is still topping, but I like to wait for RSI to cool off a bit before I draw the fib, so I don't have to permanently update the fib:




Please remember that the Adaptive MCVF (and the regular MCVF) signals aren't meant to all be signals. Only the signals at specific price levels, or when showing specific price actions, are meant to be used!



It is important to mention, all of the above could be impossible to get into, in the case that we are seeing a huge breakout on LQTY's weekly candles:



If the price action above means a long-term breakout, we could see the next long-term price action push LQTY to around $6.7. There is still no proof of this, since we are bouncing off a lower low (the lowest low ever for LQTY) and haven't tested the previous ATH.


Let me know what you think!

I hope you learned something, especially from the double bottom + trendline break theory for alt's BTC-pairs!
When using that knowledge with the cyclical behavior of most alts, you can catch a lot of good plays before they pump on their USD pairs!

An idea is linked below where I called the exact point where you should buy XRP, make sure to read that.