ADA has lost 54% since September and the waterfall to the downside apparently has no end. Let’s take a look if that could change.
Elliott:
We can, theoretically, count a complete 5-waves move to the downside (in blue). This wave is the end of a larger 5-waves down.
Geometry:
Price bounced from the pitchfork median, which is precisely the 65% retracement of the previous wave that began in May. ADA reacts to the red channel, so that a breakout would be a bullish signal.
MACD:
We have bullish divergence and a crossover of the MACD line above the Signal line on the 8h. A crossover on the 1D would trigger a buy signal.
How I trade it:
An idea could be to look for a re-accumulation and build long exposure when ADA breaks the red channel (and the .5 fib of the pitchfork) to the upside, for example above 1.7. We need a 4h/1d candle close above this area so we don’t enter on a fakeout wick. The intention is to speculate on a complete extended flat correction in BTC and trade the correlation in ADA.
Elliott:
We can, theoretically, count a complete 5-waves move to the downside (in blue). This wave is the end of a larger 5-waves down.
Geometry:
Price bounced from the pitchfork median, which is precisely the 65% retracement of the previous wave that began in May. ADA reacts to the red channel, so that a breakout would be a bullish signal.
MACD:
We have bullish divergence and a crossover of the MACD line above the Signal line on the 8h. A crossover on the 1D would trigger a buy signal.
How I trade it:
An idea could be to look for a re-accumulation and build long exposure when ADA breaks the red channel (and the .5 fib of the pitchfork) to the upside, for example above 1.7. We need a 4h/1d candle close above this area so we don’t enter on a fakeout wick. The intention is to speculate on a complete extended flat correction in BTC and trade the correlation in ADA.
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.