The Complete Model
STEEM has dropped today to nearly touch the Very Long Term Base line. Below is shown the complete LOF STEEM model I’ve been managing since January. Click for a larger view.
Some of you may remember my models from the Spring, posted irregularly before Kosh died in June. The models are generally unremarkable except when particular artifacts show up, which I call Fall Channels.
Fall Channels have an uncanny ability to indicate a point in time that a price level will be observed on the model. Those points are circled and then usually labeled with the word “EXIT”. Sometimes I just circle them with no label.
Finding The Very Long Term Baseline
Below is a zoomed in version. Note the circled Fall Channel EXITS on the left as Price made its way beyond the Extended Fall Channel. Those EXITS are found by precisely plotting the Extended Fall Channel Control Lines once they appear.
The purpose of a Control Line is to provide a guide to Price lower until a strong support is found. In this case Price found CLO-A (Control Line Overall, the “A” variant) and has followed it down to the Very Long Term Baseline. Click the model for a larger view.
Making Some Sense At This Level
.So what does this all mean to our pockets?
For me it means a couple of things. First, it means that STEEM has completed a full cycle over the timeframe of this model. LOF is used primarily for modeling Post-Peak Price Behaviors. So I expect within a couple of days this model will be considered “Complete”.
It also means to me that Price is at an inflection point where we learn whether STEEM lives or dies. Either it recovers from today’s lows or it fails as a cryptocurrency, fails as a blockchain. If I see price dip materially below that VLT Baseline, it would mean to me that STEEM has zero future prospects.
On the other hand, it means that Price has found what should be a massive support. As long as the millionaires who are supposedly The Force behind STEEM aren’t planning to abandon it, we should expect a solid rally soon.
I’m not here telling you what to do. Modeling equities using Lines Of Force is just something I do for fun. I didn’t get into STEEM to make tons of money. If you did, and then you didn’t, I feel for ya. I have no advice. Buy, sell, or hold at your own risk and by your own decision. And good luck to you, whatever you decide.
NEVER TRADE YOUR MONEY BASED ON MY WORK OR ANY WORK OTHER THAN YOUR OWN. MY WORK LOOKS AT PRICE AND PRICE ACTION OVER TIME AND IS FOR ENTERTAINMENT PURPOSES ONLY.
NO TECHNICAL INDICATORS. NO FUNDAMENTAL ANALYSIS.
IT’S YOUR MONEY. PROTECT IT.