District0x Long Opp-- RSI trading

25 thg 10, 2017

As you can see I've been playing DNT like an absolute fiddle. I see this as a great long opportunity because I still consider DNT undervalued in terms of market cap, and think it has a lot of room for growth. Since its initial pump, it's been staying faithfully within the ascending channel while drawing down between fib levels of resistance. I definitely see DNT remaining in this upward channel for at least until it recoups the initial losses to the ATH, then I will revise this idea accordingly. Not much opportunity to backtest the RSI settings on this one, it's only been on the exchange a week or two. However, I'm looking at the hourly chart with 18 periods in the RSI and as you can see the negative divergence highlighted in red signaled the end of the run.

I'm using 24 periods in the STOCH RSI to include a larger time frame, smooth the indicator a bit and provide fewer false signals by accounting for more of the macro trend. When a divergence appears here, it will be more reliable than on the other RSI indicator.

Watch for any breaks below the long term trend line in green.