Before I get into Ontology, let's recap the last chart and trade that I put up on LTC. You can go over it here: Day Trading: Litecoin could provide a short-term buying opportunity.
We took a long position on LTC around the $124 price point which we identified as an area of support targeting $145 as our take profit price.
I am happy to report that this trade was right on the money.
Later on that evening, I spotted an opportunity to go long on Ontology at around $0.56, which was also an area of support, targeting $0.60. This was a quick trade so I did not get the chance to draw up a chart.
This trade closed in under 5 hours in profit.
That now brings me to this.
Why should you add ONT to your scalping portfolio?
Since March 2020, ONT has been oscillating in a semi-narrow trading range from the lows of $0.30 to the highs of $0.92.
When tokens behave like this, it makes it very 'easy' to predict the direction the market is going to move, unlike Bitcoin which reacts very quickly and irrationally to sentiment.
That makes ONT relatively safe to scalp.
Let's zoom in a little closer from March 2020 to September 2020.
You can see we are trading in another narrow range from a low of $0.41 to a high of around $0.70.
The lowest ONT has ever been is around $0.30 which means that even if your scalp went against you around this area, you can probably anticipate that price will not go lower than the all-time low.
Finally, let us finish up on some potential trades.
First, we set out areas of support and resistance on a higher time frame so that we can gauge where the price is trading. We do this on the daily chart (D1).
You can see we are trading in the upper quarter of that range which for me means risk increases for my longs.
Once we have those we can move to a lower timeframe. I prefer the 4hr chart and here we can also start plotting areas of support and resistance.
Based on this chart we have a better understanding of the opportunities available.
Long trades are not viable at the moment so we are looking at the price potentially retesting our support for us to buy Ontology.
Let's play the waiting game now!