We buy NOT, as we wrote last night - we start buying altcoins because of the likelihood of their reversal. We were waiting for an entry point on it after a missed local setup (written on June 13), which immediately gave +24$. The full goal of the P&P did not work out; the idea of starting growth in a local five-wave structure from June 11 did not justify itself. The asset adjusted with the entire market, albeit in its own way.
We were all waiting for a new buying opportunity with the appearance of clear signals. And we consider the current level to be successful, although risky. The goal in the new setup is to sell at the new ATH.
Arguments for reversing and buying #NOT:
- A combo of “Cheap” reversal signals on the daily (the first in the history of NOT) and four-hour timeframes from the trend reversal indicator, built on the basis of Thomas DeMark’s candlestick analysis technique. Usually such combos of two TFs work well. Example - BTC May 1-2. There was the same combo and the beginning of a V-turn.
- Bullish close of yesterday's daily candle, with a bullish shadow below.
- Maintaining the volume level of $0.014260 and the Fibonacci level of 0.382 since June 20 (rate of $0.014145).
- Formed type of ABC correction within the 4th wave.
- The price returned above the EMA 200 of the four-hour TF.
- TON, a blockchain coin, looks good for growth and renewal of ATH.
At the same time, there are still a number of resistances that need to be overcome and a number of signals that are needed to confirm the reversal:
- One of the upward trend resistances from the listing day on May 16 has not been broken (indicated by the dotted line and the price below it).
- EMA 50 of the four-hour TF has not been broken (currently at $0.015350), this is now the strongest resistance from the EMA.
- The volume level of $0.015978 has not been broken. We watched the pressure towards it on June 18-20, this would be a signal to buy. But the level was not broken and the price went to get liquidity below.
- The downward trend from ATH on June 2 has not been broken (now at $0.016368).
- The downward trend since June 2 on the daily RSI (on the screen) and the level of 50 on this RSI (so far 46.7) have not been broken.
- The 0.5 Fibonacci level of the entire uptrend since the end of May has not been broken (rate $0.017067).
These are important additional signals and if they appear, it will be a strong confirmation of the reversal. But their price is from 10% of lost movement. But the point is not even that, but the fact that the combination of reversal signals from the indicator and the general sentiment in the market pushes you to take risks.
We enter a trade on#NOTwith the following introductory notes:
- Entry points - $0.014450.
- Take profit - for now we place an order at the level below the current ATH and below the psychological 3 cents - $0.029299. But it will be accompanied manually. We can either move it higher (priority) or close it with our hands.
- Stop loss - $0.012403, this is -14.17% from the entry point. More than usual, but in the end we expect to take a serious movement from the asset, which, upon repeated entry, will compensate for the possible loss. We hide the stop under yesterday's level with a reserve, and under two volume levels.
Risk/reward ratio: 7.25.
ps: in the topic for the Notcoin Community setup, they wrote that the tokens unclaimed in the bot before June 16 were divided into three groups: future development, burning, and the rest will be distributed to Notcoin researchers from the Gold and Platinum levels.
pps: The next trade today will be #ID, where the stop was knocked out. With a short stop, we will try to trade the rebound from the global trend.
