In the previous analyze of $WAXP , price was experiencing a stable accumulation state on top very important support area- a show @WAX Official and #SocialMining users interpreted as an indication of strong undercurrents. Effective maintenance of this level prevents breakdown which raises the chances of developing it as a launch point into areas of greater resistance.
Market conditions must remain favourable to see a bullish move happening. At that, should they, traders may observe the price trying to push the upper resistance areas. On the other hand, however, historical support area may be retested when market sentiment turns weak.
Cost-averaging is one of the topics most frequently mentioned by the Social Mining participants when it comes to such retracement situations, as the way to minimize the total cost of the position. The strategy means systematic purchases at significant lower levels as opposed to responsive buy-ins, and such rationale is often supported by the evidence of charts in the community.
The given method shows one of the strengths of Social Mining: the combination of real-market observation and sharing knowledge. Traders are able to test the various opinions and decide after viewing several arguments by following real-time support/resistance levels, new charts posted by members and counter arguments placed by the traders.
Moving higher or testing lower, a well-defined plan, with technical evidence to support it, kept within the context of a Social Mining discussion is key to disciplined action in volatile environments.
