How to spot a crypto momentum swing: a case study
This stock pattern happens in the crypto world too
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.
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.
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.
