STEEM BTC Showing Incredible Strength
The STEEM/BTC trading pair is very new so many of the traditional analytical tools I like to use like the MACD and RSI oscillator aren’t going to be very accurate, there is just not enough data yet. But we can use simple trend lines and volume, which in the end are the best indicators, in my opinion.
If you check out the chart below provided by Bittrex, you can see that the downtrend dating back to the beginning of trading was smashed yesterday. Because of the tremendous volume associated with this move, we can say this is legitimate and not a head fake. If I were looking at this chart and didn’t know what asset it was from, I would still say this is an extremely bullish snapshot and wouldn’t hesitate to go long.
Part of the reason that I am so bullish on STEEM/BTC is that if you are trading this market you have clearly defined risk, which is essential if you are going to be a successful trader. In this market you could go long and set a stop below that trend line. Because we convincingly broke out, what used to be resistance will now act as support.
Be careful when setting stops and be disciplined. If you are trading using a day long time frame do not overreact to temporary invasions of your stop price, wait for the 24 hour period to complete and then make a decision. Same goes for any time period you are trading; 1 minute, 5 minutes, 1 week or longer.
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Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources.
About Aaron Casillas
Aaron’s first real job was at the world renowned Capital Group where his mind was blown by an emerging technology called the internet. He has followed capital markets for nearly two decades and now devotes most of his time to technical analysis in the crypto space, boxing and his day job as a wellness coach.
