Non-Crypto: Dow Jones Index

The skill of technical analysis transcends just cryptocurrency. The things that you learn charting coins can often also be applied to other, traditional markets. It’s good to get familiar with those markets because it can help you diversify and continue to earn money when one of your markets, like cryptocurrency, goes into a prolonged bear cycle. For this, I use 1Broker. With 1Broker you can deposit bitcoin and trade traditional markets using their platform. This includes stocks, currencies, indices, and commodities. I don’t trade these markets often, but sometimes a setup comes by that makes it hard to pass up.

Today, I’m looking at DJI.

DJI is in the process of a touch on the 4 hour bollinger band and both RSIs are very low. I entered this trade and I’m targeting a short term bounce for profit. I will update when I exit the trade and the factors that I look for when evaluating where to exit.

June Crypto Holds

The coins I’m holding this month are based on catalysts. The crypto market is definitely bearish until further notice so I am taking measures to mitigate risk by only holding coins with a good catalyst. I am holding only a few coins this month in addition to my masternode accumulation coins.

 

VEN – Mainnet scheduled for end of month. Heavily shilled on Twitter and Reddit and the chart has been holding up very well during the BTC bear run.

NXT – Has an airdrop snapshot on the 23rd. This one isn’t as big, but do you remember how hard NXT pumped the last time it had an airdrop?

CS – Mainnet launch by end of June or early July. Broken downward trend on the chart.

DADI – Mainnet launch end of month.

ONT – Mainnet launch end of month.

 

At the beginning of June I decided to accumulate 1 BTC of these coins combined and see how the fund does during the course of the month. So far, I am down 2.5% on that investment which I think is pretty good considering BTC’s performance over the past month. I chose my entries very carefully and responsibly scaled into each of my trades. As the catalysts get closer, I expect to reach a final gain of 20%+ to bring my balance to 1.2BTC. I plan to rinse and repeat and hopefully continue this strategy.

Basic Technical Analysis: Drawing Lines

The purpose of this post is to show my thought process as it pertains to lines on a chart. Support and resistance lines are very important for getting good entries and exits. It’s also one of the few things I use and take into consideration when evaluating a stock or crypto. As you can see on the chart below, I’ve been drawing some lines on this recent Bitcoin price movement for the past couple days.

btc1hr.png

The first thing I noticed when I started drawing these lines two days ago was the descending wedge. You’ll notice that on the chart as the triangle pattern pointing down. The lower line of this pattern (support) is considered a good entry as long as it is towards the bottom of the pattern. You’ll see that as the pattern comes to a close, we see upwards price movement, which breaks the top line (resistance). Profit should be taken when the Stoch RSI appears to be capped out at the top (the bottom indicator on the chart).

After the significant retrace from that increase, I drew a line from the peak of this local pattern to the peak of the breakout from the falling wedge. I also drew a line along the bottom points to create two parallel lines, which makes a downward channel. The bottom line is support and the top line is resistance. After the retrace, we came back down to support for another touch on that line. BTC attempted another touch only hours later, but was rejected with significant buy support. This was my signal to get in. I saw signs of BTC bucking the downward channel. I entered the trade at that point and exited when we did see a spike towards the resistance. I played this one safe and exited before resistance because I thought it was possible that we might get rejected and continue down. I was able to make profit, but it turns out that I exited a little too early. That’s okay, though. Profit is profit. Don’t every weigh yourself down with what could have been.

Currently, we are seeing Bitcoin use the former resistance as support as we retrace from our breakout. What I am watching for here is if we fall back into the channel or if we bounce from here. This is a no-trade zone for me and I’ll be sitting on the sidelines until I see an opportunity. Sometimes the best trade is no trade at all.

Market Update

Hello everyone! It’s been a crazy couple of weeks in cryptocurrency. Hopefully the damage done to the market has had a minimal effect on you and you’ve been able to mitigate risk by getting great entries and practicing risk management. I haven’t updated you in a while on my strategies for this type of market, so today I want to tell you what I’ve been up to.

 

Passive Income

A couple of weeks ago I told you all that I would be trying to set up passive income streams via masternodes. Well, a short time after that I was able to set up my very first one. It is a SMART node, and it earns somewhere in the neighborhood of $10 a day without me doing anything. Though the passive income will be nice, the value of SMART has decreased by almost half since I set it up. So I am down 50% on my original investment. I do anticipate SMART rebounding in price when people start to reenter the crypto/altcoin markets that they exited out of fear over the past couple weeks. In the meantime, I will just sit back and collect my SMART rewards.

 

New Trading Strategies

Since I have been unable to trade alts and the volatility is low in the USD markets, I have been exploring new strategies on different timeframes. I have learned a couple of new indicators that have so far really been helping me get a better picture when I look at a chart. Currently I am experimenting with trading on a 5 minute timeframe instead of my usual 1 hour timeframe. If I am able to master this, I will be able to do several, quick trades per day. This is more fun, but also more tedious. I’ll keep you updated.

 

Trading In USD

When BTC goes down, everything else tends to go down with it. Altcoins don’t experience that much volatility or even general increase during a BTC bear market. Though I believe this is temporary, I had to find something to do while it was happening, since I specialize in altcoins. Whenever BTC slumps like this, I like to use tether and USD in my exchange accounts to trade the larger cap coins. I actually find it really refreshing to think in terms of USD when I’m trading instead of BTC because when I trade using USD I only have to think about one market. When trading alts, you have to always be watching not only that market but also the BTC market because every move that BTC makes will affect your altcoins. Trading in USD is way more calm and for me it’s even a little easier.

 

Trading on Margin (Experienced Only)

Though I have found that I enjoy trading in USD, the gains are slower and smaller than trades in BTC. This can be remedied by using leverage on your exchange of choice. I prefer to use Bitmex and trade BTC on the 5 minute timeframe. I’m usually able to do 5-10 trades per day using a few indicators. Trading on margin can be very dangerous to anybody who doesn’t know what they are doing. You should only try this once you have had success trading in USD consistently and you know how to use risk management strategies. I enjoy margin trading because it is high-speed and it enables you to make large gains from small movements.

 

Open Positions

During the crash, I sold some of my assets to USD to ensure that if crypto completely crashed, I would have enough to pay for expenses and to begin trading again. Fortunately, crypto did not die. So, about 20% of my portfolio is in USD right now. I have about 25% in ETH, 20% in ETC and the rest is spread out between various alts. My average entry on ETC is $32 and I’m looking for at the very least a 2x on that money. ETC has an airdrop coming up and if history has told us anything, it’s that coins with airdrops pump hard. That’s what I’m counting on. I won’t be sticking around for the actual airdrop. I will take profits long before that and short ETC on the way down to make money on the downside as well. Right now I’m waiting to reenter the altcoin markets until BTC decides what it is going to do.

 

BTC Outlook

What BTC does is very important to the rest of the market because the direction of the market tends to follow the direction of BTC. At the moment, it seems that we are recovering better than a lot of people expected. I am on high alert until Chinese New Year, though. Historically, BTC sees its worst days of the year in the days leading up to CNY with a nice recovery on CNY itself. I will be ready to exit any open positions if things start to drop, and you should be too. I will be buying up stuff at the bottom if that scenario plays out.

 

 

I hope you are enjoying your crypto journey. As always, questions and comments can be DM’d to me on social media or through the site.

$GUP Update

GUP has been scraping along my drawn support line while the 1 day and 4 hour RSIs reset. On those timeframes, we definitely look ready to pop off in a big way.

gup4hr.png

The 4 hour RSI is on the bottom and has started to curve up.

gup1d.png

The 1 day RSI also looks phenomenal. It has been floored for several days and I think it’s unlikely that we don’t see a major jump pretty soon.

GUP has product launches on both the 18th and 22nd. We are approaching those dates quickly and the technical analysis for GUP has set us up for hopefully some great gains with GUP.

The only foreseeable scenario in which I see GUP going down in the short-term would be if we see a BTC bull run tomorrow, which is very possible. However, lately it seems as though alts actually pump with Bitcoin, so that could create a very interesting scenario. Either way, tomorrow I’ll be watching all my holdings closely as I think we will see some great price movement.

$GUP Update

GUP has been filling out this triangle exactly as I had predicted.

gup1hr.png

As expected, we bounced off of support. I have a feeling we will head down again to retest. If we break the support, I’ll be looking to unload what I have for a profit and buy in at a better entry. From here, I expect to see some upward price movement to meet the resistance again. In my opinion we will have a couple more days until we break out of this formation.

$CAPP Update: We Have Liftoff

CAPP experienced a 20-30% price increase today. I am not getting close to a selling point yet, as I still think this coin has some room to run. Here’s a 4 hour chart:

capp4hr.png

As you can see, the 4 hour RSI is getting close to the top, but I believe this is the beginning of a sustained run. I’ll be watching closely. If it pumps really hard, I will try to sell and catch the top and then reevaluate for a potential reentry.

Diversification

One of my goals for this year is to diversify my portfolio in a way that protects it from the volatility from cryptocurrency. Although I fully expect cryptocurrency to continue its uptrend for this year, it is important to be safe when dealing with such volatile assets. There are three ways I plan on doing this. Today, I’m going to tell you how I expect to execute this shift.

  1. Buying Precious Metals 

Diversifying into something stable is really important to me. I buy my gold and silver using Bitcoin from JMBullion. They ship quickly and are able to get pretty close to spot price.

2. Learning the Stock Market

I am able to trade stocks, commodities, and forex using Bitcoin at 1Broker. You can go long or short and also use leverage. Learning these markets is important to me, because crypto likely won’t be so lucrative forever.

3. Investing Using Robo-Advisors

Let the computer do the work. I will be shopping several automated investing platforms such as Wealthfront.  This way, I’ll earn passive income and growth on my investments and be able to start building a retirement and savings fund.

 

2017 was all about accumulation. 2018 for me is going to be about diversification and making sure that anything I earn will benefit my future in an efficient way while also being protected.

$POLL TA/Outlook

POLL has been one of my favorite coins for a couple weeks. I entered it when I spotted some upcoming events and a great TA entry. I am up more than 600% since my entry on this coin but I believe it will still go up.

The chart is forming a bull pennant and the 4 hour RSI has cooled off considerably. There are upcoming events on January 17 (Clearify launch and a major partnership announcement).

poll4hr.png

I have sold enough of this coin to cover my original investment and I’m holding the rest. This coin has huge potential and I think it is still bullish.

$ZCL Update

ZCL has been gradually making its way upwards. The 4 hour RSI needs to cool down in my opinion. zcl4hr.png

I think worst case scenario–we bounce back off support on a 4 hour retrace. The daily chart is still very bullish though so any kind of dip won’t last long in my opinion.zcl1day.png

Despite a long period of growth, the 1 day RSI is still floored. I think we are going to see some more major moves leading up to the fork date announcement and ultimately the fork itself.

BTG and BCD both experienced sharp increases today, so that bodes really well for the BTCP fork.

Still holding ZCL.