price has entered the 1 day ichimoku cloud
which is signal for a high probability for an edge to edge cloud trade. Other bullish
signs are the cloud thinning towards a kumo twist, and looks set for a tenkan kijun recross(Blue line crossing over red)n and the lagging span is above the cloud. Generally the best entry is price above cloud, cloud is green or twists green, with a TK
cross above the cloud and with lagging span above cloud and price, but we are looking for signs of momentum after consolidation after price bottoming out and it seems altcoin season is back. The signals now are showing early sign of bullish
movement. Either way where we are now price wise our stop loss is pretty close to our entry point giving a good risk to reward ratio. Using setting 20,60,120,30 in order to properly account for the 24/7 cryptocurrency market compared to the monday to friday stock market and then doubling the setting to reduce noise from signals.
Besides just using Ichimoku
, you can see a large price consolidation after downtrend from November to December, with increasing volume
and higher highs and higher lows since then.
The cloud is very thick so instead of setting our first target at the top of the cloud, aiming for a previous high of 0.0021 satoshis gives a good 90% gain.
Entry 0.00110000 satoshis
Stoploss- 0.0099000 satoshis(-9%)( this is a little bit below the cloud where there is some horizontal price support. We have room to set our stop a little lower here because of our low entry and also there can be some large candlesticks
in crypto which can stop people out before big moves. )
Target 1- 0.0021 satoshis- (94)% giving a nice risk to reward ratio of 10:1
Target 2 is top of cloud- 0.0034 which is about 300% above where we are now.