My Ampleforth Strategy!

My Ampleforth Strategy!

By Sapphire | Sapphire Crypto | 30 Jul 2020


Price Actually Does Matter

Ever since Ampleforth started to zoom up the rankings on Coinmarketcap.com, one would often hear the narrative of "marketcap relevance being superior to price". To the point where price is often seen as completely irrelevant. Yes, you still own the same percentage of the marketcap but that is insignificant if you bought at $1.50 and the price drops to $0.65. This means a loss in the actual dollar value of your initial investment, further compounded by the loss of token holdings, as your token holdings will now decrease every 24 hours, provided the price remains below a dollar.

With the price being below $1, you are guaranteed to see your holdings decrease. So when, or if the price returns to your purchase price, you will be significantly down as you will be holding less tokens at $1.50 than when you entered the trade.

This is how people were obtaining 100% profit within a week or two. Say they bought at $1.50 and the price shot up above $3, they now have the actual dollar value of their investment increase. Furthermore, they receive more tokens as the contract seeks to retrace to $1 by releasing more tokens. This new token holding is then further compounded every 24 hours. Selling anywhere above $1.50 is now highly profitable. Remember the same dynamic is at play when the price drops. 

So What's the Gameplan?

This type of elasticity creates tremendous trading opportunities, provided the system works as it is designed to. With the price reaching as high as $4 it is reasonably obvious that once a retracement begins to take place, it will most likely move with intensity towards $1 and possibly lower as the weight of the move will most likely overextend. Today was a perfect example, as we saw the AMPL price drop from well over a dollar, all the way down to approximately $0.63. If you view the hourly chart below, you can clearly see the downward trend is dominating the price action.

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This downward trend is also forming a channel or even a falling wedge. These patterns tend to break to the upside and there is evidence that AMPL is trying to break out past the downward sloping resistance. These trade opportunities will most likely repeat in this price range every so often, as the 1$ mark is naturally going to be a point of gravitation. Obviously, with a healthy demand or lack of demand it may swing violently and reject this natural gravitation. 

My approach is to wait for such opportunities! If AMPL proceeds to break the downward sloping resistance, it will signal a bullish sign and most likely breakout further. The imperative point to remember is that now it is breaking out above a dollar, meaning that initial gains will be seen and compounded further every 24 hours that the price remains above a dollar. 

This pattern should tell us within a few hours what is going to play out. I will be watching and looking for an entry above the downward sloping resistance, provided it is above a dollar. Please remember that these are my views and strategies and should not be considered financial or investment advice in any way. 

To all the traders, happy trading!


Sapphire
Sapphire

Interesting views, news, opinions and all things Crypto. Independent and honest assessments of Crypto projects and earning opportunities within the space. Move into Crypto with Sapphire Crypto!


Sapphire Crypto
Sapphire Crypto

Interesting views, news, opinions and all things Crypto. Independent and honest assessments of Crypto projects and earning opportunities within the space. Move into Crypto with Sapphire Crypto!

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