IOTA (MIOTA) is the 10th most valued cryptocurrency currently. Looking to trade in IOTA (MIOTA), it is important to understand what is the pattern which it is forming on the technical charts. We today conduct the IOTA (MIOTA) technical price analysis September 2, 2018, in order to find out how you can trade it.
IOTA (MIOTA) technical price analysis September 2, 2018:
We will conduct this technical analysis on the basis of the intraday chart. Each candle represents 1 minute. It seems like IOTA (MIOTA) might be forming the inverted head and shoulders pattern. The head is found at the level of $ .71. The neckline stands at $ .75. When it is able to break up a $ .75, a long trade can be initiated. The difference between the head and the neckline is around $ 0.040. This means that when you are able to initiate a trade when IOTA (MIOTA) breaks above $ .75, it can head above by approximately 5%. Also, the stoploss can be placed just 1.5% below the neckline. This means that with the risk of 1.5% again of 5% can be achieved.
The inverted head and shoulders pattern is a bullish pattern. Whenever the neckline is broken, the set price can head much higher. However, if the set price goes below the head levels, the entire pattern is broken. In such a case, you should not initiate any kind of trade.
As always, it is a very good idea to use volume as well as RSI as a confirmation indicator. When you are able to use these confirmation indicators, it will become easier for you to avoid a false breakout. This will mean that you are able to trade profitably and in the right direction.
With the momentum being limited in most of the cryptocurrencies, it is time that traders start trading cautiously. Only when they are able to look at the confirmation indicators, the traders will be able to trade successfully. The next week is expected have little to no momentum as the triggers are pretty limited. Moreover, cryptocurrencies like Bitcoin (BTC) are trading near their resistance levels. This clearly indicates that the upside might be capped at a 3% to 4% in the next one week. That is why it is important to trade according to the patterns in order to ensure that the probability of trading on a false breakout is pretty limited.
In the case of IOTA (MIOTA), it would be a good idea to use confirmation indicators along with the inverted head and shoulders pattern breakout in order to initiate the trade in the right way.