I’ve been stalking several alts and keeping a close eye on the market for a couple of weeks now, however there have been a couple of coins that have caught my eye recently, Monetha (MTH) being one them. We got to see some positive price action over the past couple of days followed with some volume, that paired with the patterns that I’ve identified show that these coins might have larger moves coming up in the near future, though nothing is guaranteed and I can only work with the knowledge I currently have.
When it comes to trading alts I usually look for 40% gains before taking profits, Monetha seems like a good trade simply because it’s showing me that there’s a potential for a 100% move somewhere down the line, does it have to do it? Of course not, that’s why I have rules set in place to protect me in case it decides to go against me. Good entries and stop losses is the best way to mitigate unwanted risk.
For those of you who aren’t familiar with the Fibonacci Retracement tool it’s a great way to setup targets for profit taking. The 0.382 Fib level is an important spot and it lines up with my 40% profit target, I intend to secure some profits there in case it retraces. However I always keep some on just in case it ends up doing the 100% move in one go because these coins can absolutely take off whenever they feel like it. Take a look at Enjin for an example of a 200% move happening almost overnight.
The next spot I intend to take profit at is the .786 Fib level, when the price hits that Fib it usually means a retrace is coming along but not always, I have to pay attention to how it reacts off the .786 to make a more informed decision. But I do take a substantial chunk of my profits at that level usually. I’ll have to see how this trade comes along though, but for now all I can do is wait and see how this develops.
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