Josh McGruff

@PotatoMcGruff

Dogecoin: Very wow. Much Cycle.

In this article, I’d like to present to you one of my favorite coins to trade and watch. Personally, I do not know of a better example that trades in these predictable waves. Simply following this strategy, has made me some of the largest consistent gains in my trading career to date. Yes, there will be Doge memes to be had in this article as well.

So, lets kick off with a little backstory on $DOGE.

For starters, the most common misconception I see about $DOGE is that it is a dead project. This is false. $DOGE and its work can be followed at @Dogecoin_devs on Twitter and their Github is here.

At one point in my trading career, I was deemed by the community as the “CEO of $DOGE.” While no official role like that exists (I used to get asked this a lot), this coin holds a special place in my heart since it is so profitable to trade its cycles. I am often found on Twitter spreading $DOGE memes and screaming around the time the next cycle should kick off which earned me the unofficial honor. The coin itself is actually really great for use as well. Its fees are cheap and it takes on average about 1 minute to process a transaction on the next Dogecoin block.

The community is amazing too. You’ll find numerous Shibas out there who enjoy the novelty of $DOGE and also the fact that its actually a really solid product. Some of my personal favorites are @sabotagebeats, @Noob_charts, @DavidLoveDoge, and @YearOfDoge.

Also, lets not forget $DOGE had its own NASCAR.

Very Wow! Much Fast!

So, on to the main topic of this article. The Dogecoin trading cycle.

Of course, nothing is 100% In fact, the chart I will present shows one time where this didn’t work, so keep that in mind before you do anything stupid with your money and always utilize your risk management. I am not a financial adviser, the intention of this is to show one of my trading strategies.

Check out the chart below. This is the 3-Day for $DOGE on Bittrex.

Such Cycle. Much Trade.

For starters, lets evaluate the two orange lines on the chart. For the history of $DOGE on Bittrex, we’ve seen rallies start at either the 35 sat resistance line or lower. The current all-time low as of writing is 15 sats.

Next, you can see as shown by the waves as displayed on the candles, RSI, and stoch how they have played out every time on the 3-Day chart except once in September of 2016. As I mentioned, this is not 100%

We can also see the RSI does a pretty good job of following these waves.

What I really think the secret ingredient here is, is the Stoch. My good friend Crypto Core 🏆(you can also find him here on twitter) helped me discover this.

When looking at the Stoch, we can see each rally has a small “pre-pump” on the Stoch inside of the wave. This works as a “heads up” to the next incoming pump as accumulation is happening.

On the one time the Stoch broke above the wave in the pre-pump, we saw the large $DOGE rally to 187 sats.

One should note that there is a long term resistance line at approximate 114 sats that has been respected by 3 rallies (potentially 4 if the current one stops here).

Keep an eye out around this area for the rally to end.

Overall, just accumulating around 35 and lower has been pretty profitable. At those levels, I start to build my bag and average down on price. Once my bag is build, I just sit and wait. It’s really that easy. You’re not going to make 100x overnight, but you can make some serious gains taking your time and letting this trade come to you.

Each of these cycles have been very profitable from the lowest being 144% in June of 2015 to over 1100% in May of 2017.

$DOGE may appear at first glance to be a dumb meme-coin, but if you take a moment to appreciate it for what it is, it is a wonderful crypto on a technological stance, with a dedicated community, and it is a trend traders dream.

If you’d like to discuss with me, feel free to find me at Bitcoin Masons, the Discord trading community I helped found with some great people.

You can also find me at the following places:

Twitter: https://twitter.com/JoshMcGruff
TradingView: https://www.tradingview.com/u/JoshMcGruff/
Instagram: https://www.instagram.com/joshmcgruff/?hl=en
Bitcoin Masons: https://bitcoinmasons.com

See you on the Moon!

More by Josh McGruff

Topics of interest

More Related Stories