When the momentum builds and the rally starts to fly…..then bang….some profit taking and hesitancy and we have a pullback. The Dogecoin pullback was swift and brutal, nearing 600 ticks from the high of this rally. My previous post titled “And We’re Off…The Question Is How High?” advised that 26 cents may be a good level to take some size off with a view to putting it back on if there is a significant pullback. That call has turned in to a good one. If I had exited at that level I would not look to put some on back in the low twenties but would be waiting for us to trade in to the mid teens.
BTC, ETH, DOGE have all seen significant rallies, it is likely there will be some consolidation before a further rally but remember sometimes when all indicators point north is when markets go south and stop out a lot of risk takers. Be prepared and comfortable to trade the pullback and at the same time have some size on to run with the rally. Just try and avoid getting long in to the breakout as that’s always a risky thing to do and can make you more aware of P and L fluctuations than if you had run your long position from a lower price.
What I would like readers to realise is that there are times when we simply have to “sit on our hands” it means we don’t trade. We are in that zone now with the pullback to the low 20’s. Bids should be in to get long at x if you are flat or for half a clip to build in to a position and offers at x to get out of half a clip before running the rest long in to a bull run. At these low 20’s, nothing done!!!!