Sideways markets are like quicksand
As I think my readers know, trading sideways markets is a fool’s game. The problem is, one does not know that it is a sideways market in advance. That realization only comes later, often after you have lost money to a long series of false breakouts and breakdowns. Regretfully, if there is a surefire way to predict precisely when such markets will end, and a new trend begin, I have not yet found it. All we can do, per my understanding, is look for those places on the chart which are “likely” to elicit a trend change. Sometimes we are correct, other times the market just ignores that sweet spot and continues on it’s meandering path.
ETC is a classic example. Note how the top of the square was long resistance, and is now support. But price time has stuck to the line like it is tethered there. However, we are approaching the end of an arc pair and an end of square. This is a time frame when change is likely. Lets see if this chart reacts…
ETH broke decisively out of its doldrums and is heading towards targets of $293 and $330.
GNO hit a 5th arc some time ago, and has been meandering sideways ever since. It’s recent panic selloff felt like the end of it’s correction, but the sideways movement re-asserted itself.For now this is a hold/buy. Sooner or later, it seems the upward trend will begin again.
This coin continues to ever-so-slowly grind out an upward trend, but it is agonizingly slow for the longs who have seen other coins move much quicker. This is a hold.
REP’s correction is not over yet. But support is within reach. If support holds, the correction may end soon. A break below that arc will suggest a deeper decline is coming.
XBT seems to have firmly settled back in above that 2nd arc. My guess is that as soon as the XBT traders see that, a march towards $4,000 will commence.
This chart is an enigma. On the one hand that huge rally was obscenely bullish. And on the other hand, it set a top of square resistance that the market has been throttled by ever since. When it does get though it, a new rally will likely be rather exciting. This is a hold.
XMR’s correction continues, but the worst seems to be over. This is a 30 minute chart. That 3rd arc is a likely candidate to offer support to this market. Lets see what happens…
XRP is another whose long sideways movement has been maddening. Resistance is found at the top of the 1st arc pair. I note that price time will soon re-encounter the 2nd arc pair, a pair which stopped it in the past. Perhaps once pricetime gets through that arc, ~ 6/14, something exciting will begin. This is a hold.
Someone with deep pockets, corporate probably, buys these coins in large batches, pushing prices way up. Then they stop buying and existing holders sell them, taking profits. This pattern seems pretty firmly established. The last 2 big buys were on either side of the 2nd arc pair. This is a buy.
Happy trading!