ADA Failed to Break Down! Will The Price Rocket to the Upside?
Updated
ADA failed to break down after the triple top failed! The minute that bull bar on November 21st at 19:00 closed near its high, a short position should have been closed for a break even. We're still below the resistance zone. It would have been reasonable to long that bar given the multiple failed attempts to break to the downside.
How do we trade this?
The price is currently sitting at resistance in a bull trend. We should be waiting for either a strong bear signal bar to short or a breakout above the resistance zone to long. Bitcoin is in a similar situation, and we should wait for the signal before entering.
If we get a bull breakout bar closing on or near its high above the resistance zone, it's reasonable to long. Place a protective stop below the resistance zone and a 1:2 Risk/Reward ratio to the upside.
Don't trade a bull breakout bar until it closes and shows support above the resistance zone. That bar could quickly become a bear signal bar in which case, we're looking for a bar closing below the resistance zone on or near its low. A break below the channel support with a bar closing on or near its low would give us enough probability of profit to short with a tight stop, playing the reversal. We are in a bull trend, make sure the signal and confirmation are clear with tight stops.
Key Points
1. Fanning Bull Channel, Bias to Long
2. Resistance Zone Still in Play
3. Failed Triple-Top Reversal
4. RSI at 56.00 above Moving Average, Indecisive.
5. Bitcoin at a critical moment. Breakout or Breakdown?
You are solely responsible for your trades, trade at your own risk!
If you found this analysis helpful, click the Boost button and let us know what you think in the comment section below!
How do we trade this?
The price is currently sitting at resistance in a bull trend. We should be waiting for either a strong bear signal bar to short or a breakout above the resistance zone to long. Bitcoin is in a similar situation, and we should wait for the signal before entering.
If we get a bull breakout bar closing on or near its high above the resistance zone, it's reasonable to long. Place a protective stop below the resistance zone and a 1:2 Risk/Reward ratio to the upside.
Don't trade a bull breakout bar until it closes and shows support above the resistance zone. That bar could quickly become a bear signal bar in which case, we're looking for a bar closing below the resistance zone on or near its low. A break below the channel support with a bar closing on or near its low would give us enough probability of profit to short with a tight stop, playing the reversal. We are in a bull trend, make sure the signal and confirmation are clear with tight stops.
Key Points
1. Fanning Bull Channel, Bias to Long
2. Resistance Zone Still in Play
3. Failed Triple-Top Reversal
4. RSI at 56.00 above Moving Average, Indecisive.
5. Bitcoin at a critical moment. Breakout or Breakdown?
You are solely responsible for your trades, trade at your own risk!
If you found this analysis helpful, click the Boost button and let us know what you think in the comment section below!
Note
ADA is attempting to break that resistance line! Watch fort a push down to the bull channel support line and don't get trapped by getting into a long above the resistance zone before the candle closes! More updates as they happen!
-Joe Dean
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