What's up guys and girls? I was just looking through some charts for some trading opportunities and lo and behold, STEEM is looking to be in a really good spot for an entry right now.
You know how coins usually get a little bump in price then settle back down before a spike? Check this out:
There is some action there for sure. The price of STEEM had a nice bump up to 0.000976BTC and has drifted down nicely to 0.00029538BTC at this time. This is the lowest I've seen STEEM in quite some time. The numerical indicator also just hit a 9 on the weekly chart(more about the indicator in a bit). If price starts to tick up in the next week or so, this could be an indication of a rise in the STEEM price.
Let's get uppey closey and get into this new indicator a little bit.
Those of you who follow Tone Vays on YouTube will recognize this indicator. This is a numerical indicator that is very popular among professional traders. I'm new to it myself, but I get the gist of it, so I'll try to explain it.
This indicator looks at several factors in a chart and determines buy and sell points based on strength, highs, and lows and number of days/weeks the market has been going in a general direction. It gives a buy signal after a red 9 and a new candle breaks above the fourth candle before it. As long as each new candle closes above the candle 4 candles back, the count continues. When the count reaches a green 9, that is an indication to sell/take profit. When it reaches a red 9, that is an indication to buy/long the market, provided the green 1 candle closes above the close of the candle that is 4 candles before it(the 6 candle). Otherwise, the count starts over.
The theory is that after 9 candles in a given direction the market will want to go the other way. This is even more true if it makes 13 candles in that direction. The thought is that the market would be exhausted after the 13th candle and thus it would pull back.
Now, if we backtest the indicator, we can see that it did indeed give a buy signal(green 2 on 3-20-2017) at 0.00017564BTC and a (green 9) sell signal at 0.00090000BTC on 6-12-2017! Almost a 6X profit! Since then the market has been pulling back. This is partly due to natural market forces, and partly due to Bitcoin going up a lot in price. Even though this chart looks like the price of STEEM is dropping, it has maintained a healthy USD price(it's still over $1.30USD). It is adjusting vs Bitcoin to maintain it's dollar price!
According to this indicator, the price being below the 50 week moving average, and approaching an oversold condition on the RSI, I believe the market could be about to change direction again to the upside. STEEM is looking really good to me right now.
I'll be watching for it to break out of the triangle and make a green 1 candle. Of course, I could always be wrong. All these things make STEEM look really bullish to me, but as always, keep your stops tight and trade safely.
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