How to trade $DOGE — +40% profit!

A mini-lesson

On today’s livestream, Jesse spent 7-minutes covering the $DOGE chart, and he dropped a mini-lesson that we’ll walk through in the newsletter today.

If you like it, you might want to check out Jesse’s recorded coaching, where he goes into detail on these types of strategies over 60+hours of coaching.

The $DOGE chart marked up

$DOGE showing bearish divergence

The first thing Jesse notes is that $DOGE is showing bearish divergence on the 1D chart. That means that price is making higher highs, while RSI is making lower highs.

Bearish divergence is a sign price could start retracing.

$DOGE price making higher highs, while RSI makes lower highs

Marking the divergence retrace zone

The next thing Jesse did was draw a dashed line on the price chart. It started from where RSI made its first peak. And then it’s draw down at the same angle as the the line on RSI from first peak to second diverged peak.

The Sharp Shooter RSI will often draw the line on RSI for you.

Jesse’s found that price often will retrace into the dashed line. Once it does, Jesse says that the divergence has been cleared and price could resume back up.

However, it’s important to note that it’s still possible that price can continue up before clearing the divergence. It just makes a retrace more likely. We’re stacking probabilities for a trade to go our way.

$DOGE divergence: Higher highs on price, lower highs on RSI

Expect retraces after a big move

After the Buy signal on the Sharp Shooter RSI on Feb 9, price moved up 150% to the first peak and 180% on the second peak. With moves that big and that quick, you have to expect retraces along the way. Traders will be taking profits, even when the longer term picture is bullish.

Jesse mapped out lower targets, even down to the 200-week moving average at $0.12, which is where $MATIC came back to.

$DOGE got a lot of hype coming into the second peak, but Jesse was calling out the bearish divergence.

Retrace levels on $DOGE

Reversal candle + Bearish Div

On the Sharp Shooter Indicator, you’ll notice $DOGE had a reversal candle—the yellow candle with an “R” on it—on the second peak.

Add the reversal candle to the bearish divergence, and it made a retrace even more likely.

Reversal candle after bearish divergence made a retrace more likely

A potential lower high

Next, we’re seeing $DOGE add a potential lower high on price, which may increase the likelihood of a further retrace.

However, it’s still above the trending dots, and there’s no sell signal yet.

$DOGE putting in a lower high on price

Putting it together into a +40% trade

One trade setup here was to buy the the first dip at $0.152 and put in your stop-loss below the low.

Then, price ran up 45%. When you see the reversal candle closed and bearish divergence put in at $0.213, you could close the trade with a 40% gain.

There are many other potential setups here. The ideal is to have your trade mapped out in advance so you aren’t left guessing about what you’re doing along the way.

A 40% $DOGE trade

Like this email?

Your feedback helps us make it better.

Login or Subscribe to participate in polls.

We read every piece of feedback! Some love from our last newsletter, Bitcoin miners continue to drop

“Succinct - no frills. Excellent ! “

Want more?

If you love charts, then make sure to follow our posts, videos, & live streams here:

Ready to block out the noise? Join us in the discord with either one of the subscriptions by signing up here: Market Sniper Website

Disclaimer

The contents of this newsletter are expressed in my opinion only, none of which is financial advice. Always do your own research as this information is intended for educational & entertainment purposes only.

Join the conversation

or to participate.