In this post I want to zoom out a bit on the Vechain graph, look at the previous incredible bull run, the subsequent correction, &.. the next bull run!
I will be writing about several indicators beneath the chart – highlighting them a bit first – & then fully applying them to the chart – so stay with me:
https://www.tradingview.com/x/qH0R8aUg/
--> The indicator just beneath the graph is the quite common MACD. I highlighted the bullish golden crosses (crossing beneath zero where blue line comes on top) & the bearish death cross (where they do the exact opposite above the zero line).
--> The "SMI" or Stochastic Momentum Index, which typically talks about a “buy” if we enter the green zone, & a “sell” if we enter the red zone (+ a similar crossing of the two lines as with MACD).
--> Moreover, I drew the horizontal Fibonacci retracement levels (support and resistance areas), & the [b]Fibonacci speed resistance[/b] fans throughout which price moves along (also support & resistance areas)
What we are seeing in this first graph is where the buy signals were for the 'SMI', i.e. When that oscillator hits the green buy zone (it should actually really dive into it). But even then, 13/12 could be considered a buy opportunity, especially as it went together with a bullish cross in the MACD. This provides us our first entry point in Vechain.
We then see two red lights in the 'SMI', but momentum is still intact in the MACD & in the overall chart. So we did not have to sell here. However, if we look at the third large vertical in red, you can see that this one coincided with a bear cross in the 'SMI' ànd a death cross in the MACD: big selling time!
Furthermore, if we check our chart today, we see that we have severely entered the green buy zone, where the two lines are practically crossing, but not upward yet. Nevertheless, this provides us an almost great buy signal – either now, or when the curve upward takes place. If we combine that with a pending bullish cross in the MACD, we have ourselves a new BIG BUY moment!
What else is there? Well, if we take RSI (relative strength index, which has to be above 70 to talk about overbought, & beneath 30 for oversold), & combine this with the 'SMI', we see a similar story. RSI started to curve upward and give vechain a bullish momentum around or before 13/12 or near the buy signal in the 'SMI'. Furthermore, there was no real sign yet of negative momentum in the first red crosses in the 'SMI', BUT the third cross was accompanied by a reversal in the RSI trend from a severely overbought level to all the way down the drain. And...Conclusion: that is where we are today: looking at a severely oversold level in the RSI, accompanied by an almost bullish cross in the MACD, and an 'SMI' going for us as well.
And as a last one: the interplay of 'SMI' and Chande Momentum Oscillator. As you can see, the 'SMI' gives us relatively clear buy and sell signals on extremes. The 'CMO' is useful in determining the overall trend and strength, and in combination can also give us better pointers as to whether we should or shouldn’t get out and whether we are still in a downtrend or not. Have a look for yourself:
https://www.tradingview.com/x/F18Gv2Xo/
Conclusion:
Vechain is a fundamentally super-sound investment candidate (partnership with BMW, etc. - just check my website for the analysis!), & in this post we zoomed out on the graph to verify the next entry point. We are not there YET and might even experience some additional downward pressure first, but we are very close to a major trend reversal and a next bull run comparable to the first one we saw. Vechain is young, has potential, and is just about to get started.
[i]Note: this is not to be considered investment advice - DYOR.[/i]