Today I bring you another Ripple´s analysis based on a longterm tendency line I indentified in the logarithmic Price Scale. If you don´t know what log price scale is, you can find the explanation at the end of this post. Since my last post (linked below) Ripple´s has had an amazing performance, almost reaching to the $2 dollars target, which is an important psychological level. This level is important because there might be a correction before another movement (somewhere near 1.620 - Which is exactly the 0.382 point of Fibonacci scale), and therefore, we might have the opportunity to buy a bit cheaper.
I also want you to notice development ( ) and indicator. The first one ( ) is an important characteristic for support the idea of a and strong market as Ripple. Most importantly, it tells us tendency will continue in future. The second one, starts showing signals of an inflextion point, which is exactly the place where we can wait for a market correction before the a next wave.
BUY STOP: 2.05 (If correction doesn´t occur)
BUY LIMIT: 1.620 (If correction occurs)
Take Profit 1: 2.9900
Remember numbers can vary depending on your risk profile and price expectations. The numbers I propose should be use as a reference :)
What is a Logarithmic Price Scale?
Well, in first place you have to know there are two different ways you can observe the charts: arithmitc scale and logarithmic scale. The main difference between both methods, is that in the arithmitc scale, the vertical price scale indicates there´s a same distance for each price variation unit. On the contrary, logarithmic price scale shows the prices based on porcentual increments -or decrements-, that means that the distance between 1 and 2, is exactly the same distance between 5 and 10. Link to image: http://www.chilebolsa.com/foro/uploads/370_ela1.png
Are you interested in Technical Analysis?
I recommend you the John Murphy´s book: of Financial Markets. It is a great introductory book.
If you find this analysis helpful, don't forget to follow, like and comment. I use to upload new analysis every day :)