The name Dash comes from the two words ‘Digital Cash.’ Dash is an open source, peer-to-peer cryptocurrency used to send or receive payments. It was launched in 2014 and has a total market capitalization of $2.4 billion.
The trading strategy discussed below incorporates the Spike and Ledge reversal pattern which was popularized by a professional trader known as Linda Raschke. This chart pattern can reward with huge profits.
Steps to consider when trading Dash (buy side):
Dash cryptocurrency price needs to show a steady decline that suddenly accelerates to the downside
When this reversal is complete, it will resemble a cup with a sharp bottom. This sharp acceleration is usually the last stage of a bear cryptocurrency market, and in most cases, followed by a sharp reversal if all the trading-criteria for a valid Spike and Ledge are met.
The exhaustion reversal bar needs to be bigger than the previous bar
Ideally, the bigger the climax bar is in comparison with the other bars within the bearish trend, the more profitable the reversal pattern becomes. However, this is not mandatory.
The climax bar needs to develop at a key support level or after breaking a key swing low
For the Dash cryptocurrency trading strategy to work, we need to wait for the exhaustion bar to show up at the right location.
The exhaustion bar develops after several bearish impulsive bars
Impulsive bearish bars will make the appearance of a bearish trend that will trap many sellers including retailers once the tide turns. To trade profitably, you need to trade against the retail mindset.
After the downward Spike, wait for the market to enter into a short period of consolidation or channeling
Draw two parallel lines to contain this price range. This is referred to as the ‘Ledge.’ The Spike and Ledge reversal pattern satisfies all trading conditions outlined.
Buy Dash coin when we break above the Ledge
This is to avoid the usual false breakouts.
Place your protective loss below the exhaustion bar
Define your take profit.
You can achieve your profit target goals by using your preferred strategy when it comes to exit the market.
The same steps apply for the sell trade but in reverse.