DGB, NEO bullish setup analyses

Technical Analysis 2 min read September 17, 2020
Richard Fetyko

DGB, NEO bullish setup analyses

DigiByte (DGB), one of the longest running blockchain projects, has flashed bullish signals on MACD and RSI.

Also, it recently bounced off of its Support line @ $0.02 (see chart).  Trading around Support / Resistance lines is one of the simpliest and most effective strategies.  See our prior post here.

We like the DGB risk/reward set-up, with a 20% downside risk (at support line) and 50%+ upside potential (if it reaches recent highs).  Remember to use Alerts for sell signals – see video, for downside protection.

Neo (NEO), a smart contracts alternative platform to Ethereum, has also entered a bullish momentum setup with MACD and RSI crossovers.

Like most altcoins, it experienced a correction recently but remains firmly in an uptrend.

 

Buyers beware – you must monitor your own positions because these signals (MACD, RSI, etc.) can change quickly. You can set up alerts to notify you when your coins receive a Sell signal (MACD or RSI turns bearish). Don’t rely on our newsletter for all crypto trading signals, use the platform to become a proficient trader!

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.

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Written byRichard Fetyko