Back in December, I alerted you to a digital currency I was watching.
That digital currency is called Polygon, and it trades with the symbol MATIC.
As a disclaimer, I told you that I knew nothing about the coin or the MATIC network.
This idea was based on the timeless supply/demand approach to trading.
I have consistently tried to remind you that the stock market is basically just an auction.
And like any auction, it operates on the principles of supply and demand.
This strategy has served me well over the years…
And below, you can see how the technical setup looked on the chart at that time.
It was setting up in a textbook compression pattern that looked primed for a breakout based on supply and demand dynamics.
But it didn’t break out.
In fact, it cratered.
It wasn’t alone. The entire digital currency world took a hit in December and January.
Even the big names like BTC and Ethereum fell 50% or more.
Needless to say, if you bought it, you got stopped out.
Finding a Safe Re-Entry Point
Once a market corrects, you want to find the turning point that says it’s safe to get back in.
William O’Neil, investment pioneer and founder of Investor’s Business Daily, came up with the “follow through day” to signal when it was time to get back in.
And MATIC just gave us one.
I won’t go into the specific rules of follow through days in this post.
However, the idea is that you want to see a big move higher on increased volume at least four days after an attempted rally.
Is it guaranteed to work?
No. Nothing is.
But it is a good sign that buyers have come back to the table.
And as regular readers know, buying is what turns bear markets into bull markets.
Embrace the surge,
Ross Givens
