Updated
AION - Possible reversal short term swing trade
After some analysis on AION, I'm seeing the following development:
Category: High risk trade.
Reason: Relatively new coin, so no long history, behaviour can not measured properly enough. Other risk: BTC is (mis)behaving lately, and can ruin the trade.
There is a support zone forming, and we could touch it for the third time. Support is forming a stronger base when it it hit for the third time. I would like to see some more volume though, otherwise it could just fall through it.
ADX indicator of DMI is close to the low region of 9 to 11, which meant before that the market is about to make a decision of a direction again. The last two times ADX was down so low, it was a strong downtrend, but at these low prices it could become a possible upwards reversal.
With ADX so low, we will see soon which direction it will be.
MACD Histogram shows bears are losing power, and is having a positive slope and is about to cross. It remains to be seen if the bulls are strong enough to create a shot term uptrend.
The Stop Loss has been placed at 2550, this is based on the -3 Average True Range level at the local swing low, which was even a false breakout. I do expect this to be low enough. I am not sure if I set a SL or that I only set an alert, because of the manipulated markets, where stoplosses are often killed on purpose, to go up afterwards.
Note: See that false breakout, I did not check AION back then, but that is usually a very good trade setup!
Risk Reward Ratio:
Entry level: 2662
profit target 1: 2865
profit target 2: 3550
Stop Loss: 2470
R/R ratio: 1:4 for Profit target 2
R/R ratio: 1:1 for Profit target 1
Weak points: I'm not so sure about breaking the resistance for the first profit target. Therfore this trade could result in 1:1 R/R ratio, which is not that interesting. Currently, the markets are chaotic and I did not find another good setup yet.
Disclaimer: Ths is an idea, something I might follow myself, and is placed on Tradingview to share and discuss, but it is actualy for myself mostly, to keep a trading diary. It is by no means an advice and I'm not stating what I expect is going to happen.
Category: High risk trade.
Reason: Relatively new coin, so no long history, behaviour can not measured properly enough. Other risk: BTC is (mis)behaving lately, and can ruin the trade.
There is a support zone forming, and we could touch it for the third time. Support is forming a stronger base when it it hit for the third time. I would like to see some more volume though, otherwise it could just fall through it.
ADX indicator of DMI is close to the low region of 9 to 11, which meant before that the market is about to make a decision of a direction again. The last two times ADX was down so low, it was a strong downtrend, but at these low prices it could become a possible upwards reversal.
With ADX so low, we will see soon which direction it will be.
MACD Histogram shows bears are losing power, and is having a positive slope and is about to cross. It remains to be seen if the bulls are strong enough to create a shot term uptrend.
The Stop Loss has been placed at 2550, this is based on the -3 Average True Range level at the local swing low, which was even a false breakout. I do expect this to be low enough. I am not sure if I set a SL or that I only set an alert, because of the manipulated markets, where stoplosses are often killed on purpose, to go up afterwards.
Note: See that false breakout, I did not check AION back then, but that is usually a very good trade setup!
Risk Reward Ratio:
Entry level: 2662
profit target 1: 2865
profit target 2: 3550
Stop Loss: 2470
R/R ratio: 1:4 for Profit target 2
R/R ratio: 1:1 for Profit target 1
Weak points: I'm not so sure about breaking the resistance for the first profit target. Therfore this trade could result in 1:1 R/R ratio, which is not that interesting. Currently, the markets are chaotic and I did not find another good setup yet.
Disclaimer: Ths is an idea, something I might follow myself, and is placed on Tradingview to share and discuss, but it is actualy for myself mostly, to keep a trading diary. It is by no means an advice and I'm not stating what I expect is going to happen.
Note
* A good entry is your first gain *
This is how I entered:
I have chonse ATR channels including RSI to define a good entry.
As you can see, the last 20 bars, you can see that we usually dive below the 10 bar EMA, to -0.5 ATR, which means I placed my entry a bit lower then the entry in the main idea. This is my first gain.
I waited for RSI to enter the green zone, which I have drawn because I see the RSI turn every time, when in this zone. I was not too greedy and have place the order at 2646 for one part, and another part at 2643. This was around -0.5 ATR at that point.
Note
I can't edit the original chart anymore, but I did not post the latest chart including profit target 2, here it is.Trade closed: stop reached
Due to the heavy BTC dump, the Stoploss was hit.As a good trader, get in slow, get out fast. We had set our SL's and only took a small loss.
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.