How to spot a crypto momentum swing: a case study

This stock pattern happens in the crypto world too

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A momentum swing in DOGE.

I first learned about a momentum swing in the world of stock. A stock may exhibit a huge run one day. It could be up to 20% and may be triggered by earnings or news. Whatever the cause, it goes up quickly. This is the first part of the momentum swing.

Photo by engin akyurt on Unsplash

Like a pendulum, an event causes a ball to swing high. Then it falls and causes a swing up on the other side. A stock momentum swing is similar. The price rapidly increases, then decreases, and usually rises within two weeks. Here is a recent example by TWTR.

A momentum swing in TWTR.

I have found that stock patterns happen in the crypto world too. I recently noticed a possible momentum swing in DOGE.

How do you catch the momentum swing?

First, we observe a rapid price increase. This is not the day to buy because of fear of missing out (FOMO). The price will likely fall.

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Miguel A. Calles · Serverless CISO

Author of "Serverless Security" · Specializing in CMMC, SOC 2, serverless & engineering.