1. Market Analysis:
Asset: ADA/USDT (Cardano vs. USDT)
Pattern: Bullish Gartley harmonic pattern detected on the daily timeframe.
Key Levels: Price is approaching the D-point, which is at the 78.6% Fibonacci retracement of the XA leg, near a strong support zone, signaling a potential bullish reversal.
2. Gartley Pattern Details:
XA Leg: Strong initial move upward.
AB Leg: Retraces approximately 61.8% of XA.
BC Leg: Extends between 38.2% and 88.6% of AB.
CD Leg: Completes at 78.6% retracement of XA (D-point).
D Completion Zone: A critical area to monitor for bullish price action.
3. Trade Setup:
Entry Point:
Enter a long position at or near the D-point when a bullish reversal signal is confirmed (e.g., bullish engulfing, hammer candlestick, or a pin bar).
Stop-Loss:
Place the stop-loss slightly below the D-point or the nearest support level to protect against pattern invalidation.
Take-Profit Levels:
TP1: 38.2% Fibonacci retracement of the CD leg.
TP2: 61.8% Fibonacci retracement of the CD leg.
TP3 (Optional): Full retracement to the XA high.
4. Risk Management:
Position Size: Use proper risk management, risking no more than 1-2% of your trading capital.
Risk-Reward Ratio: Aim for at least a 1:2 risk-reward ratio.
5. Additional Confirmation:
Volume Analysis: Look for an increase in volume as the price reaches the D-point, which indicates strong buying interest.
Oscillator Signals: Use RSI or MACD to confirm oversold conditions or bullish divergence near the D-point.
6. Trade Execution:
Order Placement:
Set a buy limit order near the D-point if confident in the pattern.
Alternatively, wait for a confirmed bullish signal before entering the trade.
Trail Stops: Adjust stop-loss as the trade progresses to secure profits and reduce risk.
Asset: ADA/USDT (Cardano vs. USDT)
Pattern: Bullish Gartley harmonic pattern detected on the daily timeframe.
Key Levels: Price is approaching the D-point, which is at the 78.6% Fibonacci retracement of the XA leg, near a strong support zone, signaling a potential bullish reversal.
2. Gartley Pattern Details:
XA Leg: Strong initial move upward.
AB Leg: Retraces approximately 61.8% of XA.
BC Leg: Extends between 38.2% and 88.6% of AB.
CD Leg: Completes at 78.6% retracement of XA (D-point).
D Completion Zone: A critical area to monitor for bullish price action.
3. Trade Setup:
Entry Point:
Enter a long position at or near the D-point when a bullish reversal signal is confirmed (e.g., bullish engulfing, hammer candlestick, or a pin bar).
Stop-Loss:
Place the stop-loss slightly below the D-point or the nearest support level to protect against pattern invalidation.
Take-Profit Levels:
TP1: 38.2% Fibonacci retracement of the CD leg.
TP2: 61.8% Fibonacci retracement of the CD leg.
TP3 (Optional): Full retracement to the XA high.
4. Risk Management:
Position Size: Use proper risk management, risking no more than 1-2% of your trading capital.
Risk-Reward Ratio: Aim for at least a 1:2 risk-reward ratio.
5. Additional Confirmation:
Volume Analysis: Look for an increase in volume as the price reaches the D-point, which indicates strong buying interest.
Oscillator Signals: Use RSI or MACD to confirm oversold conditions or bullish divergence near the D-point.
6. Trade Execution:
Order Placement:
Set a buy limit order near the D-point if confident in the pattern.
Alternatively, wait for a confirmed bullish signal before entering the trade.
Trail Stops: Adjust stop-loss as the trade progresses to secure profits and reduce risk.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.