Crpyotcurrency: When to buy
Continuing the use of Point & Figure charts as a theme for our analysis, we can see clear and objective entries can be found using Point & Figure charts.
$10 x 3 P&F Chart
Ethereum’s Point & Figure chart is pretty damn awesome looking. There is a clear inverse Head-And-Shoulder formation where can see a column of Xs breaking out above the neckline, and then we can see the pullback to retest that neckline break with a new column of O’s forming after it fulfilled the reversal amount – and this is where we presently find Ethereum trading. It is important that Ethereum not break down lower and into the right shoulder, that would indicate a false break of the neckline and could trigger some rapid selling pressure. If prices to remain above the neckline, then an entry is very clear: $340. An entry at $340 would not only break above a small bullish pennant that is present (but not shown), it would also break the double-top that would develop at $330.
$5 x 2 P&F Chart
Like’s Point & Figure chart shows one of clear pullbacks followed buy strong dip buying and rallies. This appears to have slowed somewhat because Litecoin is developing a very noticeable congestion zone. But really, it’s continuing to form a bullish pennant right up against is major 45-degree downtrend line. The fact that Litecoin is trading up against this line means that any significant drive above that trend line will more than likely generate substantial bullish momentum. There are two entries that I see possible if a break above the trendline occurs. Entry 1 occurs when a new X forms at $135, causing a break of the double top. But above that is the prior swing high at $140 and a more conservative entry would be at Entry 2 when price breaks a double top at that swing high. They entry would be at $145.
Entry 1: $135
Entry 2: $145
$0.005 x 3 P&F Chart
Cardano’s chart shows the perfect condition for an entry above a double-top, which occurred at $0.09. Cardano is currently trading below the entry at $0.10, but it has not moved far enough to generate a new column of Os. This is a great opportunity for an entry if I wasn’t long already. A nice entry here would be anywhere between $0.08 and $0.10.
Entry: $0.08 – $0.10
$5 x 3 P&F Chart
Zcash has had quite a strong rally this year – one of the few altcoins that has had substantial and sustained gains. But it has not been immune to the drop that occurred last week with Bitcoin. On the current Point & Figure chart, we see a normal and predictable pullback. This is an excellent condition because it means if I missed a prior opportunity to take a long position, and I didn’t want to ‘chase’ the rise of Zcash, then a clear entry has presented itself. Like all entries in the Point & Figure chart, an entry above a double or triple top/bottom is necessary. On this chart, an entry at $120 would create that condition for taking a long trade.