Altcoin Long and Short Signals (November 12th, 2019)
Multiple altcoins are displaying key breakout levels for both the long and short sides of the market.
The above chart is ChainLink’s 4-hour Ichimoku chart. ChainLink has been one of the best performing altcoins over the past three months, and it looks poised to continue that trend. I’ve marked an entry with a long signal that would generate at $2.8926. An entry at that level would see price breaking above the most recent swing high of $2.8897. We would also see the Chikou Span entering ‘open space’ – a condition where it will not intercept any candlesticks over the next five to ten periods. This is an extremely bullish condition and signifies little resistance above.
Decred’s hourly chart shows one of my favorite conditions on any Ichimoku chart. What I find most favorable about this chart are the two trading opportunities that a present. I will review the buy side of this setup first. From a buying/long perspective, we have a significant number of conditions for being bullish. The Tenkan-Sen is above the Kijun-Sen, and Senkou Span A is above Senkou Span B. Price, though, is below both the Tenkan-Sen and Kijun-Sen, and the Chikou Span is inside the Cloud. Entry at $22.72 would fulfill all the conditions needed for an ideal Ichimoku breakout condition. The short side of the market could very quickly show as many bearish and bullish conditions. The things we are looking for to short are for price to move below the Cloud, but, more importantly, the Chikou Span to breakdown below the Cloud. The entry for the short would be at $22.20.
Walton is displaying the definition of a squeeze on the 1-hour Ichimoku chart. The Chikou Span, Tenkan-Sen, Kijun-Sen, Senkou Span A, Senkou Span B, and price are all trading within the same value area. The bullish entry is when the Chikou Span can cross above the Cloud. I was debating waiting for the entry higher when price moves above the most recent swing high, but that wick was barely traded and is probably not indicative of any honestly traded prices. The short side of the trade is the inverse of the long. The entry at 0.6861 would bring the Chikou Span and price both below the Cloud, a powerful breakout that could spell violent moves lower.
Now, this is one heck of a bullish looking setup. Price and the Chikou Span have broken out above the Cloud and then pulled back. It appears there was a fakeout/bear trap when ONT was pushed below the Tenkan-Sen and Kijun-Sen – but then it moved higher. The drive back above the Tenkan-Sen and Kijun-Sen was an extremely bullish event. On this daily chart, the only thing stopping price from moving higher is the current Volume Point of Control at 0.889. If price can move and close above the VPOC, we will more than likely see Ontology visit the 1.43 value area (the next high volume node).