CardanoShort
ADA → Cardano Ascending Wedge Signals a Drop! Will It Happen?
Updated
Cardano is forming an ascending wedge pattern, a bearish formation that the majority of the time ends in a fall below the support line. For the next few days, we need to consider that the probable outcome.
How do we trade this? 🤔
Consider waiting for one more attempt to break resistance at the top of the wedge around the $0.68 area. A rejection at that level creates a reasonable reversal entry for a 1:2 Risk/Reward Ratio trade. Target the $0.52 range where previous support was demonstrated.
Don't be too hasty to enter, we're still in a bull trend and ought not bet against the trend until all of the requirements are met. This includes a strong sell signal (large wick on top, price closing near or on its low), followed by a confirmation candle or candles (strong bear candles closing on or near their lows). It's greater probability of profit if that confirmation candle closes below the 1HR 30RMA.
💡 Trade Idea 💡
Short Entry: $0.6400
🟥 Stop Loss: $0.6986
✅ Take Profit: $0.5230
⚖️ Risk/Reward Ratio: 1:2
🔑 Key Takeaways 🔑
1. Ascending Wedge, Bias to Short.
2. Daily Measured Move Complete, Trend Change Probable.
3. Three Pushes Up in a Bull Run, Trend Change Probable.
4. 1HR RSI at 50.00 on Moving Average, Indecision.
5. Bitcoin at Risk of Trend Change, Supports Short Bias.
⚠️ 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 comment if you found this analysis useful!
How do we trade this? 🤔
Consider waiting for one more attempt to break resistance at the top of the wedge around the $0.68 area. A rejection at that level creates a reasonable reversal entry for a 1:2 Risk/Reward Ratio trade. Target the $0.52 range where previous support was demonstrated.
Don't be too hasty to enter, we're still in a bull trend and ought not bet against the trend until all of the requirements are met. This includes a strong sell signal (large wick on top, price closing near or on its low), followed by a confirmation candle or candles (strong bear candles closing on or near their lows). It's greater probability of profit if that confirmation candle closes below the 1HR 30RMA.
💡 Trade Idea 💡
Short Entry: $0.6400
🟥 Stop Loss: $0.6986
✅ Take Profit: $0.5230
⚖️ Risk/Reward Ratio: 1:2
🔑 Key Takeaways 🔑
1. Ascending Wedge, Bias to Short.
2. Daily Measured Move Complete, Trend Change Probable.
3. Three Pushes Up in a Bull Run, Trend Change Probable.
4. 1HR RSI at 50.00 on Moving Average, Indecision.
5. Bitcoin at Risk of Trend Change, Supports Short Bias.
⚠️ 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 comment if you found this analysis useful!
Note
ADA so far has not retested the $0.682 previous high but instead, fell to wedge support and has meandered on it for the last 12 hours. We are still missing the sell signal and confirmation, best to wait on the sidelines until we get some real movement and commitment. Also be ready for an exhaustive bull bar toward the $0.68 area which could signal the end of the bull run and convert into a trading range.
More updates to come as the price action unfolds!
-Joe Dean
Trader Engineering Course
**Available Now at TraderEngineering.com**
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