Crypto markets have given up most of last month’s gains, starting with BTC, which sets the tone for the rest.
Over 90% of coins tracked have had a negative performance in the last week and month.
In the midst of a continued bearish sentiment, however, there are some notable exceptions (hint: TRX)
Using Screener, we searched for coins that (1) maintained their uptrend, and (2) bullish momentum.
We used 3 momentum indicators: (1) MACD, (2) RSI, (3) OBV
After reviewing the Screener results (only 9 coins), we identified TRON (TRX) as a solid candidate because:
(1) MACD bullish crossover
(2) RSI bullish crossover (> 50 – the center line)
(3) OBV (on-balance-volume) uptrending, near highs
P.S.: We would set a Stop loss (or price alert) at the low point of the prior low, hence at $0.027.
Risk management – Stop Loss and trade size. In all of these setups, traders should use Stop Loss orders to manage their downside risk, in case the trade goes against us, as it often will. Trading is about probabilities and even though these setups have a high win rate, one must be prepared to minimize losses on the trades that go bust. If Stop Loss order types are not supported by they exchange, at least set up a price alert (see video). Also, trade size should be such that you never risk losing more than 2% of your total equity. Keeping the trade size small allows the trader to setup a wider Stop Loss, which gives the trade more room and time to complete with success. Setting Stop Loss levels too tight can often result in getting knocked out of a trade prematurely.
Disclaimer: This content is for informational purposes only, you should not construe any such information or other material as investment, financial, or other advice. There are risks associated with investing in cryptocurrencies. Loss of principal is possible.