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RE: Hope won't get you onto the extra mile, but this just might
Thanks for the comment, @chrisrice! Sounds like you're on a path of learning and in my opinion, that's the best path to be on!
In the past, I have used both Dollar Cost Averaging and Value Averaging with great success. So I agree with you! If you can find a bargain, buying more for cheaper is an obviously smart move. Just keep your eyes open and don't get caught buying more and more of something that's gone bad.
Out of curiosity, how will you know if Steem (or another cryptocurrency) is oversold? What are your criteria? How often do you make your measurement?
This is just a rough estimate but I believe Steem will be oversold if it goes below $0.17 USD.
The head and shoulders pattern found on the logarithmic chart marks a low target price of $0.25 and anything $0.16 or lower places Steem at a market cap of less than $50 million.
When I traded penny stocks in the mid to late 2000's, some of the stocks I was trading had a market cap of $50 million to $200 million and these were pretty much sham companies. That leads me to believe that buying in at Steem for $0.16 to $0.17 would be an absolute steal.
I am not sure if it will go that low but if it does, there is a good chance I'll be able to purchase some Steem close to that price since I am buying a little bit of Steem every month at a level that is comfortable for my family and I.
I am not sure about this since anything can happen and I could be wrong, but I tend to believe that the head and shoulders pattern will complete itself and that Steem will head towards $0.25.
P.S. I would be happy to purchase Steem anywhere in that territory though, even if it doesn't fall to $0.16 USD.