And so, I want to make sure we’re caught up to date with the Dash. So, right now what I’m seeing is, of course, a downtrend. That’s the first thing my eyes gravitate to is what is the trend? And I’m using a daily time frame so it’s not like a really small one, it’s not weekly or monthly.
Dailies are really good to just do a quick analysis if you’re not like an intraday trader. You know, just stick with the daily. So, right now with the downtrend, I’m connecting a trend line to the highs. Okay, that’s how you see it’s a downtrend.
What was going on is we were making lower lows. Now, the last low was actually a higher low, but it hasn’t broken the swing high, it hasn’t broken the trendline yet. We’ve just kind of been ranging sideways and kind of consolidating here at about this 792 level.
What I am noticing is that where price bounced off of this area of support I’m gonna put some lines here. I’m gonna put my bottom support line here at about 494 at that pivot clone and going to clone that parallel line and put it up here to this area.
This would be my daily support area. And this is where price bounced off of on the 7th well on the… what is this? The 16th and the 17th as well as on the 23rd, so we’ve just been reacting to this level of support here. I’m going to wrap a rectangle and it just helps my eyes to see right away.
So, I’m gonna keep that blue, I like blue. This is the area of support hopefully this will hold for Dash and so what happens is we’re getting some strength. Now if we rally up let me break this trendline and a daily. You know, people will notice, traders will notice and they’ll say: “Hey, there’s some strength going on with Dash”.
They’ll consider this may be a confirmation to buy if you didn’t buy here or here. Some people are waiting for more strength maybe to break this trendline and then they’ll want to buy there. But, if you’re a breakout trader and you’re waiting for a break of the trend line as your entry just be mindful of overhead resistance.
Okay, so I’m going to make some more horizontal lines here. I’m going to change the color, clone it. When I clone, I’m just making a parallel line and then I’m going to make another rectangular box in this area of resistance.
I’m going to change the color. I like to color-code things. Alright, so you see where price came rally up before on January 20th and fell away. It fell away, came back, hit support and now it’s rallying back up again.
Again, I will repeat if you plan on buying at this right here, this candle from January 22nd. The high of the day was about 857, so if we break the high of that day, if we break 857 and we’re breaking this trendline, those are two relatively good signals for strength.
But again, be mindful of overhead resistance. Now, it wouldn’t surprise me at all if the price did rally up came and hit this level of resistance starting at 924. If it fell back down of price declined again, possibly this would be the new area of support.
I’m going to color code that green. I’ll make it a little bit darker so you can see it better. So, price rally up, hit resistance again, breaks the trendline which is good, show some strength, but it does react because there are sell orders here, comes back down.
This would be a good area and a daily to buy at that point and if you do buy here, this would like to coincide with the new trendline. I’ll go ahead and put another trend line up. So, if you want to start to say, if this will continue to do it to be an uptrend, I will change this to green.
Alright, it coincides with this trendline. Come up, come back down, kind of bounce off this trendline. And again, putting lines up and rectangles and boxes and colors, it is an art. It’s not an exact thing people put their lines and boxes in slightly different places.
They put it on the bottom of the tails. They put on the bottom of the candle bodies or the top, so everyone does their own thing oftentimes with foreign currency as well as a cryptocurrency since it’s not centralized. You know, you can make your trend lines to kind of cut through those wicks and tails.
I’ll do more videos on everything I’m talking about. I am posting another video soon on how to read a candlestick so or it might be up already. I’ll go over those in more detail, but just keep that in mind up, bounce back down to this area of support at about 808 would be a good place to buy if especially we went higher, be good if we went all the way up went higher than 997 so price rallies up higher deep into this resistance level breaks the high of January 20th as well as January 16th that does show good strength.
Be looking for a pullback to get it on sale, also around this trendline as well as an area of support here at about that 808, you know, 830 area, okay? Now, if the price continues, if it bounces off of the downtrend line and continues to decline, comes back to this area of support and then actually breaks the support here at 492.
To continue the downtrend because again once you make a new lower low which is 591, then downtrend continues. If it breaks this low of 591 continues down and breaks the area of support altogether, then the next area I’d be looking at hopefully to hold.
You know, it says it the greatest in the world, but anywhere here, all the way down to 350 because as you can see. Look how long price range here in 2017 and you know, kept beating up this area of 395 all the way down to 232 just one sideways consolidated here ranged here.
And then when it finally did break out here back in November came back down retested it and then it was off to the races from there, so this breakout area as well as this area of consolidation. Whenever you have like 2 or more factors that help you to reinforce your position whether you’re bullish or bearish, it’s kind of like give me a reason, actually give me 2 reasons to go long or go short.
I need more than one and you’re stacking odds in your favor when you have multiple tools by which to analyze with, to help build your position. Okay, so that’s where I see for that, we’re looking to buy so.
And if you continue to rally, if it gets up to this area of resistance comes back to retest this area which would be great or comes up to this area of resistance since it might just blow through it or it continues up this uptrend, we just have a lot to get through here.
Look how long we went sideways here with Dash. Let me open that up a little bit. Wait, was just sideways here forever since like January of this year, December. I mean this is a daily chart.
It doesn’t sound that long but for the last month I mean we just went and these are very large swings in price. This is a huge daily range right here in price very volatile. I mean we went as high as when we see on January 5th, we went as high as 13, 21 to a low of the day of 924.
You know, it’s like 400 points in a day. These are huge swings on a daily level right here. If the price of Dash does continue to rally on an uptrend back up to this sideways area of price, for intraday traders, people looking in small timeframes, you know, 15 minutes, 60 minutes for our time frames and looking to take some intraday trading money.
Just be careful because I know with sideways price action, especially very you know volatile swings your account can get chopped up to little bitty pieces. So, just be careful. Manage your risk accordingly in a responsible fashion.
Alright, so just keep your eye on these price points for a Dash. Thanks for joining me again. I’m not a financial advisor, broker or anything like that. I’m just a trader sharing with you what I personally look at on my own price charts when I analyze currencies. Alright, I will talk to you soon and check out my next video, I will be analyzing some different cryptocurrency pairs as well in the top 10. All right, bye.