In adding to the overall picture I'll run through a setup that didn't work out with the result I didn't take a scalp on it. I was watching IMI at the 0.007/0.008 level as posted earlier. I was hoping it would co-operate the way PNO did.
Something that's important to me is the 'feel' of how the orders and transactions are flowing. It has to feel 'easy'. IMO, if the action makes you feel like getting behind and pushing or zapping a few modems on the other side of the exchange to clear the sellers, then it probably isn't going to work.
This played out like that.
1) At around 14:30 there was plenty of action at 0.008. You can see the size of the buys. The orange dotted line goes around one at 14:35:15. On the DOM buyers bulk at the 0.008 level.
2) One seller starts the off-load with 2,000,0000 then a few more bigger sellers follow up. What I'm looking for now is a lack of further selling, perhaps a pause and then buying at 0.009 to start. But others dump in and the price is flipped back. The DOM keeps flipping 0.007/0.008 to 0.008/0.009 and back again but all transactions are occurring at 0.008.
3) 10 mins later you can see some brave soul take a little nibble at 0.009 for 50,000. But there's no follow-up and the sellers keep unloading at 0.008. At 14:49:26 another small bite at 0.009 for 150,000. This is why I never set price. I only follow it. I just want a small bite of the pie. I'm not trying to cause anything to happen. This example shows why. If no-one else shares your view, then it isn't going anywhere.
4) There's no follow through. The sellers are motivated and they're unloading.
5) Worse, you can see the buy line at 0.007 is diminishing but that was occurring without transactions. That means the orders are being pulled. The buyers are expecting the sellers to keep going now. It's no longer a question of can it keep rising, but how far are they prepared to push down?