ZRX is currently touching an upward trendline that started back in January. This is an opportunity to go long with a close stop loss. If this line breaks, except a rather huge drop, but given the history I would say it's likely to hold.
Note
It's still hugging the bottom trendline (pink) but as long as the day continues to close above this line, you'll be in profit from this trade. It could continue to hug this trendline for a year and you would be fine. However, as soon as the day closes strong below this line, it's a sell.Trade active
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When zoomed into hourly on the log chart, you'll see what appears to be an ascending triangle which is a bullish pattern and usually means reversal of a down trend or continuation of a bull trend. If it breaks to the downside of this with force, consider selling it.Note
Quick comment on the chart above. I normally don't use wicks for trendlines. The only exception I make is in ascending triangle patterns. It's very important to so see the top of the ascending triangle being respected near perfectly. Only wicks can show this.Note
When buying the main supporting trendline of an asset, you need to decide how bad you want to own this asset. If you think this asset has the possibility to moon in the future, like ZRX getting listed on Coinbase, then you may want to consider a more aggressive buy, which is buying the trendline as shown above. However, if you don't care whether you own it or not, and you simply want the very best opportunity and if that opportunity doesn't present itself, then you don't want it, then you will consider the following when buying a support line like this: How far has the price dipped or faked-out below the supporting trendline in the past? Looking at ZRX, the last two times it went below the trendline it was nearly 13%. This is enough to scare any hodler, but the odds are it will stay above the trendline. Now if it doesn't, it's like breaking the spine of any living organism, it'll likely die. If you're looking to minimize your risk for huge reward and you don't really care if you own ZRX or not, then you would buy about 13% below the trendline. If the opportunity doesn't present itself, there are PLENTY of other coins/stocks/etfs to consider. The best part is, you can draw a trendline for 100 different assets on Trading view and set an alert to when the price crosses under the line. If you have the pro version, you can receive a text message to your phone which is ideal.Trade active
If you want very little risk with 95% upside potential, you would buy this line here.
My goal is to find the best risk:reward setups. For instance, if you risk $1,000 at a chance to make $5,000, you can afford to be wrong 4 out of 5 times and still not lose money. I hit my targets over 50% of the time.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
My goal is to find the best risk:reward setups. For instance, if you risk $1,000 at a chance to make $5,000, you can afford to be wrong 4 out of 5 times and still not lose money. I hit my targets over 50% of the time.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.