2023-12-23 22:30 |
The TD Sequential indicator has been a valuable tool for Optimism (OP) traders to time the market. After identifying a major buy signal for OP over three weeks ago, this indicator is now flashing a warning sign.
Buying the Surge On December 1
Crypto trader Ali highlighted how the TD Sequential was signaling an opportune time to buy OP. Traders who followed this signal were handsomely rewarded, as Optimism proceeded to surge 81% in price over the following weeks.
As Ali noted on Twitter: “Back on December 1, the TD Sequential indicator was all about buying #Optimism, leading to an impressive 81% surge.” Spotting these textbook buy signals allows traders to maximize gains.
Shift in Momentum
However, the tide has now turned on Optimism’s outlook – at least temporarily. According to Ali, this same indicator “is flashing a sell signal on the $OP 12-hour chart.”
The TD Sequential works by identifying overbought and oversold conditions in the market. Its sell signals often capture major pivot points when rallies have overextended and need to cool off.
Heed the Warning Signs
Traders who want to lock in OP gains may be wise to consider booking some profits if the current sell signal is validated. As Ali suggests: “It might be the right moment for #OP traders to consider booking profits!”
The key is not to panic sell out of positions completely. But trimming exposure around signal reversals helps traders take advantage of price swings.
What happens next for Optimism will come down to whether the sell signal marks a temporary pullback or more sustained reversal. Either way, technical indicators like the TD Sequential have once again proven valuable for timing major moves. Traders should keep it top of mind while managing OP exposure during periods of shifting momentum.
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The post This Indicator Correctly Signaled an 81% Surge in Optimism (OP) Price 3 Weeks Ago; Now, It’s Flashing a Sell appeared first on CaptainAltcoin.
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