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by Seth Parker on October 26, 2018

Dogecoin Analysis – Dead dog bounce?

Last technical analysis in this week but in the same time, a very important trading lesson. Today we will show You, why we very often say that you need to buy after the bounce or the breakout of the support/resistance. Dogecoin – that is the hero of the day. Today, we are up around 5% but this is just the dead cat bounce after a massive drop. This is what we said on the 10th of September, when we analysed this instrument for the last time:

“Currently, the price is aiming a crucial resistance on the 0.0064 USD (blue). The breakout of this level will reopen a buy signal. Sentiment is still positive but buying strictly under the resistance is not the best strategy on the record. „

dogecoin chart

The price did not manage to break that resistance and went lower. Guys, buying below the resistance is always a bad idea. It is better to wait a bit for the breakout. Yes, you will lose few pips but in the same time you will gain a confirmation. Now, the price is going up but this is just the reaction on the horizontal support. I would not go for it. In my opinion this is just a temporary correction and we should experience a further slide.

By Seth Parker

Seth is a professional trader with over 10 years of experience. He specializes in the technical analysis. His main focus is on the pure Price Action. In his trading, Seth used the trends, supports and resistances and technical formations. Always, the most important thing in his strategy is the money management. Seth reached a proficiency in trading and for the past three years is doing that for a living enjoying the sun and lovely beaches of the Spanish coast.

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