ADTX Monthly

Sep 2, 2023

ADTX is in a falling downtrend, as shown in the declining parallel channel.
It had an all time high of $19,160, and a low of $7.34.

There has been 5 huge monthly green candles in ADTXs history. (Noted with orange circles)
These candles may have caused FOMO for impatient investors. These 5 candles had increases of 79%, 12%, 23%, 17% and 245%.

Each time these monthly candles went parabolic, it got rejected by resistance (yellow lines,)
and continued stair stepping down to a lower low.

This stock has 38 monthly candles in its entire existence.
Thirty of them were red months, and only 8 were green months.
As of one trading day in September, it is a green candle.

Feb 1

Note

3-day chart using the gaussian channel.
The gaussian channel has two outer yellow bands and a single midline orange line.

(This chart is meant to be a big picture, visual guide of what's been happening with this stock.)

I feel ADTX is a short sellers' dream stock:
Whenever price breaks above the upper yellow band (circle) that would be a buy area.
And when price pokes below the bottom yellow band (rectangle) that would be a sell area.
The red percentages are a rough calculation of the percent dropped from the top of the band to the bottom of the band.
And the purple squares note how long the move took.

Also watch how price reacts with the middle orange line. When price is above the orange line, ADTX is bullish. Whenever its below the line, it's bearish.

The most current entry point would've been in August of 2023, and I would been waiting for price to poke below the yellow band to sell my position.

I don't recommend anyone using this strategy for trading, but rather use it as a visual guide to catch trend reversals.
ADTX has huge wicks whenever it pokes above the gaussian channel, and it would be very difficult to place a short order without getting short squeezed.
Some wicks go over 100% after breaking the top of the gaussian channel.
And at some point, ADTX may finally reverse its three and half year downtrend, completely invalidating this theory.

Feb 1

Trade active

Oops, I made an error.
The updated chart is using the Bollinger Bands and not the Gaussian Channel.

Jul 11

Note

On the right chart is the YEARLY candles.
From ADTX's inception in 2020 to present day, this stock has been making double digit loses yearly.
Yes there are periodic booms from time to time, but overall this stock is in a forever downtrend.

On the left is a weekly chart with the bollinger bands.
The rsi just had a cross above its moving average (blue circle) and is pointing towards the 50 level. (orange circle)
When the rsi reached the 50 level in the past, half of the times price reached the top of the bollinger bands. (orange arrows) And the other half of the times price reached the middle of the bollinger bands. (blue arrows)
Where will price reach this time? (green arrows)

The stochastic rsi is just starting to have a bullish cross up. (red circle)
On the weekly chart, it is very significant if both the red and blue lines can cross above the yellow horizontal line.
If this move happens, it should push price up significantly in the next couple of weeks.
Watch the green arrows if both stochastic lines cross up, because this could be the next price targets.