Cardano (ADA) Corrective Wave, (Quick Trade Idea)
Updated
While North America slept, Asia was busy taking profits after our insane short term bull run. ADA has currently shown what appears to be a head and shoulders pattern in the 4 hour chart and we are currently holding the 2900-3000 satoshi support.
Signals:
-Head and shoulders after a relatively long bullish trend
-Bearish RSI divergeance
-Lack of volume & long legged doji candlestick. signaling indecision.
-BTC Dominance rose to 39% as of 11:09 EDT, likely caused by quick BTC drop from the 9.3k levels all the way to 8.8k, meaning alts with lack of stable fiat pairs will suffer.
How to trade
- Sell at if a candle closes below the 3000 satoshi support level
- Note that if ADA breaks under support levels, we will likely see that as the next resistance.
Buying points
2600-2780 satoshi range, where previous support has been shown
2400-2500 satoshi level (Strong buy, I currently believe it is unlikely for us to reach that low)
Sell Stop
If you choose to use a sell stop, place it slightly under each support level. I know many of you are holding for the long term so it will be your decision.
Quick Trade Idea
If ADA drops 5% under a support line, we will likely see the next candle be a green one, that closes just under the support line. This idea can be used if ADA breaks under the 3000 satoshi mark for a quick 1-5% profit, but you will need to catch the opportunity.
Please criticize my TA's so I can improve. Thank's for reading!
Signals:
-Head and shoulders after a relatively long bullish trend
-Bearish RSI divergeance
-Lack of volume & long legged doji candlestick. signaling indecision.
-BTC Dominance rose to 39% as of 11:09 EDT, likely caused by quick BTC drop from the 9.3k levels all the way to 8.8k, meaning alts with lack of stable fiat pairs will suffer.
How to trade
- Sell at if a candle closes below the 3000 satoshi support level
- Note that if ADA breaks under support levels, we will likely see that as the next resistance.
Buying points
2600-2780 satoshi range, where previous support has been shown
2400-2500 satoshi level (Strong buy, I currently believe it is unlikely for us to reach that low)
Sell Stop
If you choose to use a sell stop, place it slightly under each support level. I know many of you are holding for the long term so it will be your decision.
Quick Trade Idea
If ADA drops 5% under a support line, we will likely see the next candle be a green one, that closes just under the support line. This idea can be used if ADA breaks under the 3000 satoshi mark for a quick 1-5% profit, but you will need to catch the opportunity.
Please criticize my TA's so I can improve. Thank's for reading!
Note
Currently testing the cloud againNote
ADA launches two test nets this week, probably why it increased so much.Trade closed: target reached
We more than broke through the 3.4k sat target range. This has been a pretty profitable trade.You guys might want to hold cause it currently seems pretty strong rn.
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