A new coin is dropped into the market what to do? how to trade? This is a strategy that I use and it works exceptionally well, new coins are a risk in the market as you can't look at history to perform a thorough technical analysis .
To trade you need to find the support and resistance level of your coin first; this is found off the first daily candle to close generally but in this example we have used the first 4H candle.
Your resistance is at the top of the body of the first candle and your support is at the bottom.
If the next candle closes over your resistance (green line) its a buy or hold if you already owned it and your stop loss then becomes just below this green line as you don't want to take any risks keep it tight being a new chart. Once you close over the green line your green line is your first support.
If your holding this coin and the second candle of chart breaks your support (red line) then its a sell.
If you break low you then will be looking when to enter the trade.... we enter when the first candle closes back over the red line on the way back up as the red line has then become your resistance and when a candle closes over it this will be your support.
We have seen my trades on Storm, Ncash and ONT 0.00% we have all made a fortune on these but we entered at the right time and that was using this exact method.
So for future rather then say when should I buy this new coin is it going to the moon, draw this on your screen and work from it and you will succeed.
For better results use the first Daily candle to close as your support and resistance rather then the 4H.
The reason I have split this chart is you can also see for aggressive investors they can watch the 30 minute time frames and get a gauge of not only the price movements they can see the accumulation indicator to see if this is trending up or down to let them know if its a buy or sell. This is only an indicator though and you still wouldn't enter until we have seen a close below or above your support.
You don't trade based on any timeframe shorter then 4H closing over the resistance or below the support in my opinion.
BTC -4.47% is moving down, I had spare time and I know loads of people love new coins so I hope this helps you all :)
@mammit46, Thanks Mammit! I need to do them more often
mmsavani
⋅
What about QLC i baught on 2850 now it is 1750 will it recover or not?
Hold or not
Cash-is-King
⋅
@mmsavani, thats a tough one, in the future set a stop loss but at the moment we are still going down, I would buy when we are going up..... some people enjoy the long hold.... we will be back on some good trades soon jump on the rather then riding titanic. I will definitely be trading QLC but I will also post an entry point so don't worry you won't miss it.
mmsavani
⋅
@Cash-is-King, ok thanks a lot now i m exiting this coin....
FloTi
⋅
So when I check ONT for example and the D-Chart, that means ONT will rise quite alot within the next weeks, right? :)