In the original article from July 11th (https://www.fnlcryptodna.com/post/kava-is-kaving-in-and-ready-to-break-out), we observed that Kava ($4.37) had broken a recent level of resistance on the top side and were debating where to set entry points to enter a position to hold.
Predictions were as follows-
- "I might expect a decisive move by the beginning of August to end this consolidation and tell us if this upward pressure from the bottom is as strong as it appears. If the buyers (bottom blue) can hold and power through this resistance to stay above the $3.5-$5 range through the end of July, then we might anticipate a bull run from Kava through August."
-"If instead KAVA pushes downward through the first level of buyers (bottom blue), then I would anticipate the next level of resistance (red) to become a floor around the $2 mark. If i were leaving a limit order i might look somewhere down at $2-2.5 as a best-case scenario for a Long position; although KAVA might only fall as low as $3.50 if the recent stampede of bulls powers through. "
Kava chart from July 11 for reference-
The Bulls ran.
Kava came back from $4.37 almost exactly to the first level at $3.50 before taking a joyride through august.
Original chart and drawtools for reference. The support and resistance lines in blue have not been moved. Orange vertical line marks when the original article was written. The Green line is where Kava was predicted to come back to at $3.50 before making its bull run through August.
Kava never reached the lower levels of resistance, but this was anticipated by the support level in blue showing a strong bullish tendency (that ended up trampling the shorts).
Wait you said it would go down further too? Are yall guessing?
It is important to note that trading comes with an acceptance of not being able to predict the market precisely every single time; you might say there is a tolerance level on any given trade or trading setup. Sometimes I like to give myself a slight safety net in case I am wrong or the market doesn't turn around exactly where anticipated during a pullback.
The article stated that Kava might pull back as low as $2-2.5 as a "best-case scenario", implying that order to be less likely to get picked up than the one at $3.50. In this case the market only came back to the closer support level. We were confident that upon breaking that $3.5 level, the $2-2.5 level was a great place to add on a bit more. In this case that lower drop never happened and that's still awesome.
Applying price action trading knowledge from FNL to crypto charts allowed our members at FNL Crypto DNA to get a phenomenal entry point just before Kava made its run through August. We avoided the common mistake of getting in at the very top of the mark, waited on a desired entry point, and had almost 0 drawdown after being picked up at $3.50.
Today is August 16th and Kava is currently $6.49- nearly double our entry point.
FNL Crypto DNA
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