Many who follow my trading criteria know I run a rather simple system of TA. I used the 5 and 13 day EMA and what for crossovers.
When I took a look at HIVE/USD yesterday, I noticed that it was positioning itself for a crossover to the up side (this is bullish).
Of course, since it crossed to the downside back in August, it had a number of instances where pricing action pushed the 5 day EMA close to the 13. Yet, over the last 6 weeks or so, it never crossed.
Here is the chart.
We can see that today's price action caused a crossover to the upside as denoted by the blue circle. Having a strong green candle is reason for optimism.
We can also view this as breaking out of its long term descending channel. Here we see another reason to be optimistic about the upcoming price movement.
Of course, things can reverse just as quickly so it is best to not rush into things. Waiting for confirmation is often the best approach. In this instance, a follow through tomorrow could cause those who are looking to go long with HIVE to take a position.
This chart is using daily candles so the timeframe of trades is a bit longer term. Anyone looking for quick trading signals might want to use the 4 hour (or even hourly) candles. The chart is for those who are looking for moves that take place over weeks-to-months.
We might see a run up in the price of HIVE if this crossover holds. It will likely be a few weeks that we see the move. This is not going to be a long term move through. We still are dealing with a shorter term frame as opposed to a major bull run.
The next couple days will tell us whether this is a legitimate trade signal or a false one. If it is the former, we could see a nice run over the next couple weeks. On the other hand, if it is a false signal, we will continue to lower levels from here (look in the 10 cent range).
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gif by @doze
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