Meta: Should you invest in Steem now? Lets look at some Technical Analysis, shall we?
Hype & Correction
During the hype and shortly after Poloniex listed STEEM, the price soared to ~0.007. Today, you can buy STEEM for ~0.0036, which is about 50% off.
Should you?
Lets look at some technicals.
We have been in a steady downtrend for the past 10 days.
Although I don't like "catching the falling knife", that is, buying assets whilst they are in a downtrend, 50% haircut is a modest correction.
Average buy-in price is 47% higher
The green and red horizontal bars on the left side of a chart represent a volume histogram. This is a very useful tool, as it tells us how much volume there was at each price level. This information is very useful for determining future resistance areas. If we have a reversal, and start rallying again, expect some resistance starting at .005 area.
The red horizontal line spanning across chart represents a volume weighted average price. We can see that the majority of people bought in at the average price of .0053, which is 47% higher than the current price. OUCH.
Flibbr's Oscillator is oversold
I like to think of oscillators as pendulums. They are not leading indicators (meaning, they don't have any predictive power per se), but they do tell us, relatively speaking, where we are in the short term cycle.
The oscillator on the chart is Williams %R (inverted stochastic oscillator), overlayed with its own 21 period EMA. Currently, it looks like its setting up for a reversal.
Volume
Steem has surprisingly small volume footprint in compare to other coins in the similar market-cap bracket.
Both Litecoin and Ripple have more than double the daily volume, despite having smaller market caps.
This leads me to believe one or more of the following may be true:
- A bottom hasn't been reached with conviction.
- There is no panic selling going on.
- Stakeholders are not willing to sell.
- Stakeholders are not able to sell (perhaps due to vesting).
Verdict
The current price is a tempting entry point. I have made several Steem purchases today and yesterday in the area of .0042 - .0037. I do not feel confident for a large entry yet, but I do think this is a good time to pick up some Steem, if the intent is to convert to SP and hold for the long term. I have therefore accumulated 16% of my total desired position size, and will be buying more, if the price keeps dropping.
Please note
I am not your financial advisor and this post is not an investment or trading advice. The above post merely represents my opinions, which could be factually wrong. Please conduct your own due diligence before investing.
#money #trading #steem #investing
Full Source Code of The Rational Flibbr Indicator:
//* Full credits and appreciation to The Rational Flibbr Indicators Creator
//* flibbr : flibbr.com : @flibbr
//* Consider tipping flibbr
study(title="The Rational Flibbr Indicator v2", shorttitle="The Rational Flibbr Indicator v2")
useCustomTick = input(false, title="Custom ticker? [Y/N]", confirm=true)
tickCustom = input(title="Symbol [e.g. BTCCNY:HUOBI]", type=string, defval="")
useCustomRes = input(false, title="Custom time interval? [Y/N]", confirm=true)
resCustom = input(title="Time interval (W, D, [min])", type=string, defval="")
tickery = useCustomTick ? tickCustom : tickerid
res = useCustomRes ? resCustom : period
source = security(tickery, res, close)
length = input(21, minval=1, title="Will")
upper = highest(length)
lower = lowest(length)
out = 100 * (source - upper) / (upper - lower)
len = input(13, minval=1, title="EMA")
out2 = ema(out, len)
Flex = input(3, minval=1, maxval=10, title="Cross flexibility [1-10]")
Sup = input(-20, minval=-100, title="Level of stupidity UP")
Sdown = input(-80, minval=-100, title="Level of stupidity DOWN")
HCross = input(defval=true, type = bool, title="Highlight crossovers? [Y/N]")
BGcoloring = input(defval=true, type = bool, title="Background coloring? [Y/N]")
Transpa = input(65, title="Background color transparency [%]")
Will = plot(out, title="Will", color=#19193E, linewidth=1)
EMA = plot(out2, title="EMA", color=(out2[0]>out2[1]? green:red), linewidth=2)
plot((HCross and cross(out, out2) and out2 >= (Sup-Flex)) or (HCross and cross(out, out2) and out2 <= (Sdown+Flex))? out2 : na,title="Cross center", color=black, style=circles, linewidth=2, transp=80)