🔍 Market Context:
- AEVO is in a downtrend, with a series of lower highs and lower lows.
- The price has retraced from recent lows and is testing key Fibonacci retracement levels as resistance.
📊 Trade Entry Criteria:
- The entry aligns with the 0.5 Fibonacci retracement level (0.2717), a historically strong resistance point in a bearish market.
- Price is showing rejection wicks around the 0.382 (0.2626) to 0.5 (0.2717) levels, indicating selling pressure.
- The previous strong bearish candles suggest sellers are in control.
🎯 Trade Targets & Risk Management
- Entry Price: Around 0.2648 - 0.2717 USDT
- Stop Loss (SL): Above 0.3106 USDT (-1 Fib level)
- Take Profit (TP): At 0.1576 USDT (-1 Fib extension)
- Risk-to-Reward Ratio: High R:R trade (approximately 1:4 or better)
🛑 Stop-Loss Placement:
- The stop-loss is placed above 0.3106 USDT, beyond the -1 Fib extension, ensuring protection against price spikes.
📉 Profit Target Justification:
- The primary take-profit target is around 0.1576 USDT (-1 Fib extension), aligning with previous swing lows.
- If bearish momentum continues, a deeper drop towards 0.1300 USDT could be possible.
📌 Summary
✔ Bearish rejection at Fibonacci levels
✔ Confluence with overall downtrend
✔ Clear risk-reward ratio (high probability short setup)
✔ Targets key support zones from historical price action
🔻 If price closes above 0.3106 USDT, the trade is invalidated. Otherwise, a continuation lower is expected.
Trade active
Trade is going well. Take partial profits here at 0.2381 as we may see price come up a bit here.Trade closed: target reached
Trade closed. Can keep a portion open if you choose depending on your entry.Note
Target hit
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.