Theta Fuel (TFUEL) Has Spiked More Than 900% Before Mainnet 2.0Why traders are interested in Theta and the launch of mainnet 2.0:
Hi friend hope you are doing good. Today I want to talk about Thetafuel coin that is the native token of Theta blockchain. If we visit their website then we can see that only 2 days are left in the launch of mainnet 2.0. Therefore the traders are interested to buy and trade Theta token and the Tfuel as well. But the theta token is spiked more than 300% and the TFUEL has spiked more than 900% therefore I would like to talk about that TFUEL.
Down channel and the synchronized movement of price action with indicators:
The price action of a TFUEL coin has formed a down channel on midterm 2 day chart. If we take a coser look at the chart then it can be observed that the movement of the priceline is very much synchronized with relative strength index (RSI) and Momentum indicator. Whenever the price action reaches at the support and the RSI visited oversold zone then momentum gives bullish signals and the price action turns bullish and reached at the resistance. Theta fuel coin has repeated this act three times during the movement within this channel. First time it produced more than 52% profit on the second time that it produced more than 76% and on the third time the price action broke out the resistance of the channel and so far it has produced 900% big gains.
SMAs on daily chart:
If we watch the simple moving averages and daily chart with the time period of 25, 50, 100 and 200 then it can be easily observed that the price action has crossed up all these simple moving averages with a powerful rally. And all these moving averages has formed an opened alligator mouth as we have the smallest simple moving average above all and the biggest simple moving average below all other moving averages. But there is a little bit critical situation that the distance between the moving averages and the candlestick very big. Therefore the candlestick doesn't have support of the moving average nearby its tail. So if the price action will start a correction rally and drops down upto the 25 simple moving average to use it as a support then it will be a huge loss for the trader who has bought the Tfuel at this point.
EMAs on long term chart:
Now I would like to show you a bullish position of the exponential moving averages with the time period of 10 and 21 on long term weekly chart. It can be clearly seen on this chart that price action has crossed up the EMA 10 and 21. That is very strong bullish signal on this weeky chart. And the candlestick has crossed up these two EMAs with the powerful bullish spike. And now the next candlestick has opened above these two emponential moving averages. But again we have the same critical situation here like we have on the daily chart with simple moving averages. And that is the distance between the EMAs and the candlestick is very big so if the price action will move down to retest these EMAs as support then again there will be a huge loss for the traders.
The use of up channel for safe trading:
Now the question is that if someone wants to buy Tfuel here then what can be the safest way. I have found two safe ways to trade the Theta Fuel here. And one more thing that the price action is too much bullish therefore we can have the swing trading chances on the small time period candlesticks. So if we switch to the 30 minutes then we can see that since two days the price action is moving within an up channel. And that is a very good opportunity for the traders to buy at the support of the channel and sell at the resistance as the price action is moving within the support and resistance very well. But again the stop loss is very much important because the price action is already moving above the 900% level. So the support of this channel can be used as a stop loss. If the price action will break down the support then you should take exit from this trade to minimize the risk of loss.
Average true range trailing stop indicator:
The more safe way that I have found is to place average true range trailing stop indicator on 15 minute chart. This indicator is available on the tradingveiw.
You can create your account there because there are more than 5000 indicators available that can help you in trading. Now let's move to the chart again. After placing this indicator you can use it as a buy and sell signal and the stop loss as wel. Here is the way how. First you need to watch when the candlesticks are crossing up the average true range indicator then you can buy and when the candlestick will cross down this indicate then you can sell. For example the candlestick crossed up this indicator on 23rd May and the closing price of that candlestick 79 sats. And at this time the price line is moving around 223 sats. So its mean if you would have bought at 79 sats then you would be add around 200% profit.
This is only one example I have shown when you will move back on this chart then you will find tons of examples where the priceline has produced big profits on the small time period candlesticks with this indicator. I would repeat again that this indicator should be used as a stop loss strictly. For example if you have bought using buying signal of this indicator and if the price line crosses down or breaks down the indicator’s line then you should sell. Because if the price line will be dropped from here in starts a correction rally on big time period charts then you can get stuck in trade for the long time period.
Conclusion:
Even though the price action of the TFUEL is moving above 900% level but it is still producing hundreds of percent by giving the chances of swing trading even on the small time period charts. But trading such coins involved high risks therefore the stop loss strategy is must.
Note: This idea is education purpose only and not intended to be investment advice, please seek a duly licensed professional and do you own research before any investment.
