With the market volatility dropping off we have seen the market drifting with a lack of conviction in direction. We will need to lower our expectations a bit to returns that are more modest from the outsized gains we all became accustomed to over the last year.
We see the Daily Pivot Range (blue dots), and the 3 Day Rolling Pivot Range (yellow dots) overlapping, this is important. The Opening Range is also just above these levels. So the bias is to the upside.
The Daily Pivot Moving Averages are flat, so they are neutral. The market could be setting up for a rally.
But it will have to confirm this strength by closing above the ‘A’ up line.
The action to take is to place a buy order to enter the market long if the market trades at or above the ‘A’ up line for 15 consecutive minutes or longer. This will confirm the market wants to move higher. Use your short term or 1-5 minute charts to verify the time requirement.
Place the stop loss at the Opening Range low and the profit target stated below.
Note: If triggered, look for the trade to play out over a period of 48 hours and if no significant move after 3 hours, exit the trade. Keep in mind the 3 hours is not a rule but a guideline as you will want to use discretion when managing the trade.
Disclaimer: The writer owns Litecoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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