ADA → Cardano Pullback Followed by New Highs? Let's Answer.
Aktualisiert
ADA completed its measured move to $0.68 and has now completed two legs down in a pullback to Support Zone #1. Should we long here?
How do we trade this? 🤔
Support Zone #1 has held through two failed attempts to break down. We have a strong bull bar leading into the Daily 30EMA where we are now seeing some resistance. The RSI is around 50 and above the Moving Average, another sign for a long position. The only thing we're missing is a solid Risk/Reward Ratio, which requires the price pullback a bit more before we can enter the market.
We ought to target at least a 1:2 Risk/Reward, but I believe we have the runway for a 1:3 Risk/Reward given the distance to the previous high of $0.68. Target the $0.487 area for an entry and place a stop loss below Support Zone #1 around $0.44, the first Take Profit at $0.535, and the final Take Profit around $0.63 or until you see a sell signal. Move the stop loss up to the entry price when Take Profit #1 is hit to lock in profits.
💡 Trade Idea 💡
Long Entry: $0.4875
🟥 Stop Loss: $0.440
✅ Take Profit #1: $0.535
✅ Take Profit #2: $0.630
⚖️ Risk/Reward Ratio: 1:3
🔑 Key Takeaways 🔑
1. Two-legged pullback after a bull run
2. Two failed attempts to break Support Zone #1
3. Strong bull bar after pullback into the Daily 30EMA
4. Wait for the price to pullback to the $0.487 area for an entry
5. RSI at 50.00 and above the moving average, supports long bias.
💰 Trading Tip 💰
Trends typically have 3 pushes in either direction before a trend change begins. Along with other market indicators, creates a situation to look for counter-trend trades because the probability of profit is high enough.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
Like 👍 and Follow to learn more about:
1. Reading Price Action
2. Chart Analysis
3. Trade Management
4. Trading Psychology
How do we trade this? 🤔
Support Zone #1 has held through two failed attempts to break down. We have a strong bull bar leading into the Daily 30EMA where we are now seeing some resistance. The RSI is around 50 and above the Moving Average, another sign for a long position. The only thing we're missing is a solid Risk/Reward Ratio, which requires the price pullback a bit more before we can enter the market.
We ought to target at least a 1:2 Risk/Reward, but I believe we have the runway for a 1:3 Risk/Reward given the distance to the previous high of $0.68. Target the $0.487 area for an entry and place a stop loss below Support Zone #1 around $0.44, the first Take Profit at $0.535, and the final Take Profit around $0.63 or until you see a sell signal. Move the stop loss up to the entry price when Take Profit #1 is hit to lock in profits.
💡 Trade Idea 💡
Long Entry: $0.4875
🟥 Stop Loss: $0.440
✅ Take Profit #1: $0.535
✅ Take Profit #2: $0.630
⚖️ Risk/Reward Ratio: 1:3
🔑 Key Takeaways 🔑
1. Two-legged pullback after a bull run
2. Two failed attempts to break Support Zone #1
3. Strong bull bar after pullback into the Daily 30EMA
4. Wait for the price to pullback to the $0.487 area for an entry
5. RSI at 50.00 and above the moving average, supports long bias.
💰 Trading Tip 💰
Trends typically have 3 pushes in either direction before a trend change begins. Along with other market indicators, creates a situation to look for counter-trend trades because the probability of profit is high enough.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
Like 👍 and Follow to learn more about:
1. Reading Price Action
2. Chart Analysis
3. Trade Management
4. Trading Psychology
Anmerkung
ADA provided us our break above the 30EMA! With that, the first Take Profit target has been hit. Half of the original position should have been sold and the stop loss moved to the entry price. Now the remainder of the position can be held until 1:2 R/R, 1/3 R/R, or until a strong sell signal and follow through presents itself at a key resistance level.
Trade geschlossen: Ziel wurde erreicht
Second Take Profit target recached! This trade is closed. A 15% profit on the first half of the position and 30% on the second half.
My current stance on the crypto market as a whole is slanted bearish as I still believe we are severely overbought and burning hot to the upside. Several charts show there or more legs to the upside, RSI's overbought on Daily ad Weekly charts, and my Bitcoin Lifetime Analysis:
More to come in my next ADA analysis!
-Joe Dean
Trader Engineering Course
**Available Now at TraderEngineering.com**
Trader Engineering Course
**Available Now at TraderEngineering.com**
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