Ranges in cryptocurrencies are over

Ranges in cryptocurrencies that lasted from the end of 2018 till the March of 2020 are over for good and the crypto market is trending again. Whatever, crypto pair you will take, it is trending, and performing much better than US dollar, or even the famous US security market of SP500. It is really the time to buy and hold cryptocurrencies, at least till the end of the year. 

However, markets often consolidate and get into ranges, at least for a while. exmarkets.com published a great article on how to trade ranges. Be sure to read it, as cryptocurrencies range for about 80% of the time. If you want to learn more about trend trading, be sure to check what Investopedia has to say about it. Some of the best performers in the most current trend in crypto was in btc/usd, eth/usd, and ltc/usd. 

It is hard to predict which cryptocurrencies will perform best, so one of better choices for you would be to buy and hold a number of pairs, to increase diversification. Of course, do not forget to have a specific day trading plan, and risk control, as well as sound profit targets. I would really discourage you from scalping the crypto market as those who scalp will often lose their scalps. Day trading, trend trading, range trading or simply price action trading will work much better. 

Also do not forget to select the best trading platform before you open any trades. No investing strategy will help you if you do not do your own due diligence. You can be the best investor, or day trader, but you choose a scam broker in crypto market you might lose all of your capital. 

Successful day trading strategies might also include buying at the low of the day and selling at the high of the day, or vice versa. There are some crypto trading apps around that say to produce great trading results, but I am not so sure about them. Always remember, that you need to have your own day trading rules, whether you trend trade, or range trade. Take care. Good luck in your trading career.

Oil in Range for the Second Week

As has been said earlier oil was expected to stay in a range for some time. There were obvious signs of a failed rally upwards that ended with the commodity reaching 49 level. It has been two weeks of ranging now. From technical point of view you can see a bearish triangle in development with the support being at 43.50 level and resistance with descending trend line at 46.00-46.50 area. There is a possibility of a false break above current resistance and a rally to 47.00-47.50 area, but in my opinion, price will likely stall at 46.50.

We should also remember that narrowing range is always followed by sharp increase of volatility and breakouts and prolonged moves. That’s precisely what I expect from the commodity. Sometime in the next couple of weeks the security should break through 43.50-43.00 level. A less likely scenario would be the commodity running above 46 level to 49 resistance and then going beyond that to 54-55 resistance. 

Anyway, if we have a rally towards 46.00-46.50 I would wait for some bearish signs (railroad tracks, bearish pin, M pattern and etc.) at the top to go short. At the moment I have no intentions of buying the security.