Cosmos (ATOM/USD) on the 4-Hour Timeframe
This is a long (buy) trade setup based on technical analysis, particularly focusing on bullish divergence and the price holding near a support zone.
Entry Point:
Price: 4.76 USD
Reason for Entry: The trade is being initiated at this price level due to the confluence of a
bullish divergence on the RSI and the price respecting a strong support zone around 4.50 USD.
The divergence suggests that bearish momentum is weakening, increasing the probability of a
bullish reversal.
Stop Loss (Risk Management):
Stop Loss Level: 4.40 USD
Target (Take Profit) Levels:
1. First Target (TP1): 5.20 USD
Reason: This level aligns with an intermediate resistance zone and is a reasonable first target.
2. Second Target (TP2): 6.00 USD
Reason: Psychological level, and it also aligns with a High Volume Price (HVPM) area, which
could act as a significant price level where sellers might come in.
3. Final Target (TP3): 6.50 USD
Reason: This level represents a strong resistance zone from previous price action, marking
the upper limit of the expected upward move. This is the full potential of the trade.
Disclaimer: This is not financial advice. Trading and investing involve significant risk, and it is important to do your own research and consult with a financial advisor before making any trading decisions.
Entry Point:
Price: 4.76 USD
Reason for Entry: The trade is being initiated at this price level due to the confluence of a
bullish divergence on the RSI and the price respecting a strong support zone around 4.50 USD.
The divergence suggests that bearish momentum is weakening, increasing the probability of a
bullish reversal.
Stop Loss (Risk Management):
Stop Loss Level: 4.40 USD
Target (Take Profit) Levels:
1. First Target (TP1): 5.20 USD
Reason: This level aligns with an intermediate resistance zone and is a reasonable first target.
2. Second Target (TP2): 6.00 USD
Reason: Psychological level, and it also aligns with a High Volume Price (HVPM) area, which
could act as a significant price level where sellers might come in.
3. Final Target (TP3): 6.50 USD
Reason: This level represents a strong resistance zone from previous price action, marking
the upper limit of the expected upward move. This is the full potential of the trade.
Disclaimer: This is not financial advice. Trading and investing involve significant risk, and it is important to do your own research and consult with a financial advisor before making any trading decisions.
Trade active
70% of profits taken. Raised stop-loss to $4.90 and added a 1% trailing stop-lossTrade closed: stop reached
Trailing stop triggered.
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