The chart you provided is a Bitcoin (BTC/USDT) 30-minute candlestick chart, illustrating a short (sell) trade setup. Here's a breakdown of the technical analysis:
Key Elements in the Chart:
1. Descending Channel: The price has been moving within a downward sloping channel, indicating a bearish trend.
2. Bearish Flag Pattern: A consolidation pattern (flag) is forming within the downtrend, typically a continuation pattern suggesting another drop is likely.
3. Entry Point: The current price (~108,199 USDT) appears to be at or just below the lower bound of the consolidation pattern, signaling a possible short entry.
4. Stop Loss: Placed around 108,953 USDT, just above the recent highs of the flag structure, to limit risk if the breakout fails.
5. Target Point: Around 105,924 USDT, near the previous low or the projected distance of the flagpole from the breakout point, which aligns with the measured move concept.
Trade Setup Summary:
Type: Short (sell)
Entry: ~108,200 USDT
Stop Loss: ~108,950 USDT
Target: ~105,924 USDT
Risk-Reward Ratio: Favorable, as the potential reward appears greater than the risk.
This strategy is based on the assumption that the bearish flag will resolve to the downside, continuing the prior trend. Always combine such setups with broader market context and risk management practices. Would you like help calculating the exact risk-reward ratio or setting this up in a trading plan?
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Key Elements in the Chart:
1. Descending Channel: The price has been moving within a downward sloping channel, indicating a bearish trend.
2. Bearish Flag Pattern: A consolidation pattern (flag) is forming within the downtrend, typically a continuation pattern suggesting another drop is likely.
3. Entry Point: The current price (~108,199 USDT) appears to be at or just below the lower bound of the consolidation pattern, signaling a possible short entry.
4. Stop Loss: Placed around 108,953 USDT, just above the recent highs of the flag structure, to limit risk if the breakout fails.
5. Target Point: Around 105,924 USDT, near the previous low or the projected distance of the flagpole from the breakout point, which aligns with the measured move concept.
Trade Setup Summary:
Type: Short (sell)
Entry: ~108,200 USDT
Stop Loss: ~108,950 USDT
Target: ~105,924 USDT
Risk-Reward Ratio: Favorable, as the potential reward appears greater than the risk.
This strategy is based on the assumption that the bearish flag will resolve to the downside, continuing the prior trend. Always combine such setups with broader market context and risk management practices. Would you like help calculating the exact risk-reward ratio or setting this up in a trading plan?
Drop like and comment
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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.
t.me/+EQ88IkMSUvQwMGJk
Join telegram channel free
t.me/+EQ88IkMSUvQwMGJk
Join telegram channel free
t.me/+EQ88IkMSUvQwMGJk
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.