IOST set up for breakout - EMA crossing strategy
Hello everyone and welcome to this analysis on
IOSTBTC
.
On this analysis I will use the EMA crossing strategy on the hour chart. Usually I am using it in wider timeframes too avoid fakeouts.
Reminder on EMA crossing strategy:
-RSI under 70
-EMA 26 crosses EMA 52
-Low volume on MACD (optional)
-4 hours chart (for 4%-10% gains)
-1 hour chart (for 3%-6% gains)
As you can see the technical tool that I am using and has been rewarding to me is based on the EMA 52,26,12 using the 4 hour chart. A crossover of the EMA 52 and 26 is a sign of a beginning of a trend. In this case you can see that the EMA 26 has crossed the EMA 52 few hours ago, but has not yet started the breakout that we are here to catch. I have drawn a triangle (in blue) in which the price has been trading and is expected to make its run up or down. In order to assess if the price will make a move upward or downward, the EMA crossing strategy helps us make a decision. The fact that the EMA crossover happened few hours ago is not a problem considering the fact that if the breakout did not occur already then the price is likely to have a short pullback before exploding.
You can notice that I have drawn a thin green trend line representing a smaller triangle in the bigger one. This is where the price, if it goes past the green line, will show a first burst that will fuel the next rally.
Aggressive approach:
Long at market price to avoid sudden breakout.
Stop loss below lower edge of triangle.
Take profit at past resistance (upper red dotted line).
Potential profit of approx. 4%.
Conservative approach:
Long at lower edge of triangle.
Stop loss just above past support (lower green dotted line).
Take profit just under resistance level (upper green dotted line).
Potential profit of approx. 6%.
N.B: This strategy safely works for short term price movements. For example, my take profits are usually between 4 and 8%. Additionally, I use 2% of my portfolio per trade with a risk/reward ratio of 2.
**This is my set up and I am sharing that with you for educational purpose. This isn't, in any case, financial advice.**
IOSTBTC
. On this analysis I will use the EMA crossing strategy on the hour chart. Usually I am using it in wider timeframes too avoid fakeouts.
Reminder on EMA crossing strategy:
-RSI under 70
-EMA 26 crosses EMA 52
-Low volume on MACD (optional)
-4 hours chart (for 4%-10% gains)
-1 hour chart (for 3%-6% gains)
As you can see the technical tool that I am using and has been rewarding to me is based on the EMA 52,26,12 using the 4 hour chart. A crossover of the EMA 52 and 26 is a sign of a beginning of a trend. In this case you can see that the EMA 26 has crossed the EMA 52 few hours ago, but has not yet started the breakout that we are here to catch. I have drawn a triangle (in blue) in which the price has been trading and is expected to make its run up or down. In order to assess if the price will make a move upward or downward, the EMA crossing strategy helps us make a decision. The fact that the EMA crossover happened few hours ago is not a problem considering the fact that if the breakout did not occur already then the price is likely to have a short pullback before exploding.
You can notice that I have drawn a thin green trend line representing a smaller triangle in the bigger one. This is where the price, if it goes past the green line, will show a first burst that will fuel the next rally.
Aggressive approach:
Long at market price to avoid sudden breakout.
Stop loss below lower edge of triangle.
Take profit at past resistance (upper red dotted line).
Potential profit of approx. 4%.
Conservative approach:
Long at lower edge of triangle.
Stop loss just above past support (lower green dotted line).
Take profit just under resistance level (upper green dotted line).
Potential profit of approx. 6%.
N.B: This strategy safely works for short term price movements. For example, my take profits are usually between 4 and 8%. Additionally, I use 2% of my portfolio per trade with a risk/reward ratio of 2.
**This is my set up and I am sharing that with you for educational purpose. This isn't, in any case, financial advice.**
Trade fechado: objetivo atingido:
Agressive approach