2.) The is not showing FORTH’s price to be inside overbought territory, (which begins at 70 but will usually push well up into the mid 80s or beyond), and is also trending up with the price of FORTH .
3.) As for the holding above 50 but below 70 means there is still demand and the Bulls haven’t lost control of FORTH .
The fact that FORTH has all the signs of a breakout from the , (potentially pushing the price up more than $1-2), or at least continuing in its current up-trend, doesn’t necessarily equate to a buy signal.
The oversold zone means the price of the asset or coin your assessing is cheap. In other words, you’re buying it at a discount . (as long as you have reason to believe the asset’s price will indeed recover—meaning you have faith in the company or crypto itself)
On the other hand, for current holders of FORTH , this is a great sign. It means you hold on and sell once the (potential) breakout happens, or rest assured that you can sleep at night knowing that your portfolio won’t disappear overnight.
I’m not saying it’s a bad time to buy FORTH , I’m simply saying that it’s not the BEST time to buy it.
Now, if you believe in what Ampleforth is doing as a company, and that the price of their governance token will eventually make it back up to the $70 range, then this might be a good opportunity to add to your position or open a new one with FORTH .
Contrary to everything I just said, all of the indications the chart for FORTH is showing us, I sold my small stake today.
Let me explain: I never really liked this company, or it’s token, not because I think it’s a bad one that’s doomed to fail, but because I had a bad experience with them.
They have a relatively small market cap, (as does many Altcoins), therefore the price of FORTH can get erratic at times.
*Small Market Cap also makes price manipulation easier. (Either intentional manipulation, or consequential due to FUD or some external factor)
I have lost money with this token, so I have had a bad taste in my mouth. That’s purely a personal issue that I have, and not at all something for anyone reading this to base their own decision on what to do in regards to FORTH .
The small market cap of the asset you’re buying should have an effect on how you manage the position. I’m not suggesting to avoid small cap altcoins.
(If we base all of our decisions on finding Altcoins with huge Market Caps, then we’d soon find our list of potential coins very limited.)
*Its just another thing to watch for and consider when your do make your next investment decision.
*Another advantage you gain by knowing what the potential impact of having a small market cap is on an Altcoin (or even a Penny Stock) is that when it’s price does make an extreme move, (either against or with you), you can have some solace in knowing it will likely correct itself.
If this ever happens to an asset you own with a small market cap, then look over all the check points:
—Was there some recent news about the company, either good or bad?
—How are the Daily, Weekly, (long term) Charts looking? Find the overall trend, make sure important Support or Resistance levels haven’t been broken.
—Do some analysis: I like to use the Indicator. Also, (and I’m not even sure if this is a based indicator), I like to use the Indicator to make sure money is pouring in—not being pulled out.
At the end of the day, it’s for you to decide what to buy and what to sell. Never take the advice of one person, especially someone like me who’s posting my thoughts (NOT FINANCIAL ADVICE), online.
Do your due diligence and confirm, confirm, confirm.
—As the late Ronald Regan once said: “Trust, but verify.”
If you notice something in a chart or on social media that peaks your interest, then by all means go ahead and explore it some more. Ask the people you see talking about it, question them, trust them—but VERIFY that they are right.
They could be intentionally lying to you in order to artificially inflate (pump) the price of some small cap altcoin or penny stock. Perhaps they’re not lying, but simply misinformed. People are wrong at times, it’s happens to the best of us.
Then there’s the chance that they’re right, and buying whatever snake oil they’re selling actually does cure tuberculosis. . . Who knows?
But one decision is ALWAYS the right one to make: Trust, but verify everything that anyone tells you about anything.
—Buying a TV at a pawnshop? You going to take the pawnbroker’s word that the thing turns on?
Idk about you, but I’m going to compliment his store and the wonderful assortment of products he has on display, and how nice of a TV this is, especially at the price he’s charging.
“Oh, I almost forgot sir.” I hate to be a pain in the ass, but my wife (I’m not married or even in a relationship) will kill me if I don’t check.”
“Would you mind if we plugged it in for a few minutes to make sure it’s working properly? I just want to make sure the WiFi feature works and that everything is running smooth.”
Don’t be embarrassed to ask. Hell, ask more than that.
***Imagine the questions and demands the Pawnbroker had for the person who SOLD him the TV in the first place!***
TRUST BUT VERIFY
—Have a great day (or night depending where you’re at. It’s 2am here in LA) and I wish you all huge profits and happy trading for the upcoming week.