Hot on the heels of our recent success in using the work of Jesse Livermore, we are going to stay with this construct and update the visuals for big coins.

As a review, Livermore was a famous trader from the early 1900s. He is featured in a classic trading book, “Reminiscences of Stock Operator.” He is considered one of the most famous traders ever.

Livermore has a construct where an upward sloping diagonal range precedes a parabolic up move. The construct is shown in Figure 1.

 Figure 1

It seems like the recent fever about IEO (Initial Exchange Offerings) have ignited the alt space. While we agree that many alts have bottoms, we feel the latest wave of alt mania may be distracting people from the investment opportunity at hand in big coins.

For example, Ethereum (ETH), Litecoin (LTC), EOS, and Stellar (XLM) all show very promising upside potential based on the Livermore work (Figure 2 – Figure 5)

 Figure 2  Figure 3  Figure 4

 Figure 4

Bottom Line: Alt fever is great for the crypto space. It is an indication that speculators and traders are active and looking for momentum. That said, alt pumps should not act as a distraction from the bigger point. Big coins are going to be seen as technology investments and mediums of exchange. Bitcoin’s (BTC) resurrection and uncertainty in legacy capital markets have the potential to fuel big gains for buy and hold investors in big cap crypto coins.

Lately, nobody has played the alt game better than the Crypto.IQ Trading Desk. They know how to win.

Join me there.