ADAUSDT Short Idea / Elliot Wave Principles / Fib Analysis
When analysing the market, I noticed this potential Elliot Wave setup on ADAUSDT. For a number of reasons, I suspect that this pairing is forming a good opportunity to achieve a ~5.5 R:R short.
The process taken to get to this idea is as follows:
[Weekly] Macro view of the support / resistance flip zone on ADA between $1.20 and $1.30.
[4H] Clean chart showing the interaction with the support / resistance zone.
[1H] Validation of Wave 1 Rules
[1H] Validation of Wave 1/2/3 Rules
[1H] Validation of Wave 4 Rules
[1H] Validation of Wave 5 Rules
Correction Wave and Short Area of Interest
The process taken to get to this idea is as follows:
[Weekly] Macro view of the support / resistance flip zone on ADA between $1.20 and $1.30.
[4H] Clean chart showing the interaction with the support / resistance zone.
[1H] Validation of Wave 1 Rules
[1H] Validation of Wave 1/2/3 Rules
[1H] Validation of Wave 4 Rules
[1H] Validation of Wave 5 Rules
Correction Wave and Short Area of Interest
Trade active
Trading is active, price has bounced off the top of the 0.382 Fib level on the A Wave Correction fib and is currently re-testing this level. It this level fails to hold, we will see price drop again to the $1 level and then potentially onward to our target.
On the macro outlook, BTC is currently pushing towards another ATH re-test. It is currently forming a rising wedge pattern on the lower timeframes, with this price action occurring over the weekend with lower volumes. A Monday bearish correction could be on the cards for BTC, which will assist our trade on 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.