Long

Automata Network (ATAUSDT)

Updated

An agressive entry, be careful. Bitcoin can knock out everything and invalidate the setup. So take it with a grain of salt. To be on the safe side, wait for a clear direction from BTC.
Take it easy on your position.

Comment

More explanation about the setup :

- Momentum: low volatility, but no confirmation yet MA13/MA30 or EMA9/EMA18
- Location: main reload zone is between 0.7 and 0.53, secondary between 0.64 and 0.61. Ideally wait for a return to secondary RLZ to validate a confluence and limit risks. If the secondary RLZ is broken from below, the structure is invalidated and the trade cancelled. Currently the price is a bit high, but we can return to RLZ at any time.
- Structure: wait for confirmation of the daily "W" by breaking its neckline or by breaking and retesting it.

More info :

- OBV increasing (good)
- negative spreads (good)
- Williman R coming out of his zone of stupidity and crossing his MA13 (good)
- Chop index loaded (big movement incoming)

Comment

The big RLZ rectangle, between 0.7 and 0.5275 is a "pro" buying zone for the medium to long term. Of course, if a tragedy occurs, it can be broken to the south, but for the long term, it is mathematically a solid investment zone. As you saw, we went for the bottom of this rectangle on January 8th, chasing a few stops a little lower but closing within it.

We are also in a falling wedge. I don't base my trades on triangles, because they are often traps, but given the location, I think it will be validated to the north.

Now we have to be patient and wait for a consolidation as we see the bullish momentum slowly coming back and drawing a reversal structure. The location is perfect. If BTC is nice, it will be fine.

We are in a range between 0.5890 and 0.5010. When the momentum comes back in daily, the first job will be to break 0.5890 with a candle closed in daily.

There are three possibilities:

- Aggressive: we already place our buy order just above 0.5890
- Wiser: we wait to break this level and retest it successfully.
- The barbarian: buy the bottom of the range. If the daily close is below 0.551, we will look for the 0.5344 > 0.5010 zone, but more likely between 0.5344 and 05197.

At the TP level, the zones are for the moment :

1: between 0.6479 and 0.6257
2: between 0.8282 and 0.7698
3: between 0.9382 and 0.8602

Looking at the volume profile, it should be fine until the 3rd TP, after that we'll need more juice to pass.

Gokyo

Also on:

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.