These patterns come up time and time again. The reason they come up is because of the way whales accumulate coins. They use bots to do this which causes very specific patterns to emerge. You can take advantage of this as a trader if you keep an eye on the coins.
The pattern is as follows: Huge impulsive increase in price, supported by huge volume . Then a (sometimes long drawn out) consolidation period where the price action usually falls into a symmetric triangle (sometimes it's an ascending/descending triangle too). As the price converges to the apex of the triangle, the volume drops off. Usually the price will go through an A-B-C-D-E 0.49% wave, followed by a A-B-C correction with a shallow C wave, because there's so much buy pressure. Then we get another breakout after this correction is complete. I've witnessed this with so many coins, but here I'm publishing my first idea ahead of time to show that it really is happening.
Whales are accumulating A LOT of altcoins at the moment. If you are smart, you can spot it and take advantage.
Hey @alexcheema - awesome analysis - plays out perfectly, very impressive! Just curious as to where you are drawing your Fib levels from?
Also - haven't spotted this pattern on any other coins at the moment have you? : )
alexcheema
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Bear in mind that we may be here a while. We're at the fib level where bots are programmed to start cashing out. It's your decision whether you take some profits here.
alexcheema
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@alexcheema, You can see we've tested this key level many times already, and we're testing it again. You can see the spikes in volume as we approach this key area. Many traders will look for a spike in volume here, but I'm looking for a decrease in volume around this level to indicate the end of the selling off period for bots around here. Looks like we might be getting it now. Keep an eye out and we could see another breakout. This isn't financial advice, good luck trading :)
Belcara
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i bought this coin ICO stage at 60 c...i was planing to hold it for long term....so I could swing trade or should i just hold and see in 1 year what happen ....mmmh...???
alexcheema
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@Belcara, If you truly believe in the project, by all means hold it long term. A good strategy I've found is to keep 75% in long term holdings and 25% to trade. Taking regular profits is never a bad idea.
alexcheema
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Just my opinion. Not financial advice.
Belcara
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@alexcheema, thank you very much for your answer...great none financial advice...hehehe...!
Belcara
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great job....so what now...i am new are we selling now ?
HyperionAllied
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Great analysis and causation thankyou.
alexcheema
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@HyperionAllied, no problem. Glad you found it useful. Looks like it played out exactly as I anticipated. It's a pattern I love to see and it's something you can capitalise on while we're in this crazy bull market and whales are using their bots to make crazy multipliers. If you can catch their zones of accumulation, you can cash in on some big gains.
Also - haven't spotted this pattern on any other coins at the moment have you? : )